Importance and used of your E.P.F. Fund

Friends, Have you finally zeroed in on your dream house but are running short of funds? Or perhaps your child’s education cost is more than you had planned for? At such times, it’s easy to fall back on your EPF savings. While you cannot withdraw the entire corpus to fund such needs, you can do so partially for specific occasions, such as children’s education, marriages, or for buying a house or a plot of land.

Go through the following list to find out when you can avail of this facility, the amount you can withdraw and the conditions you need to fulfill.

Marriage or education of self, children or siblings:

• You should have completed a minimum of seven years of service.
• The maximum amount you can draw is 50% of your contribution (12% of the basic salary).
• You can avail of it three times in your working life.
• You will have to submit the wedding invite or a certified copy of the fee payable to the educational institution.
  

Medical treatment for Self or family (spouse, children, dependent parents):

• You can avail of it for major surgical operations in a hospital or by those suffering from TB, leprosy, paralysis, cancer, mental derangement or heart ailments.
• The maximum amount you can draw is six times your salary or the entire contribution made by you till date, whichever is less.
• You must show proof of hospitalisation for one month or more with leave certificate for that period from your employer. You must also prove that you are not a member of the Employees’ State Insurance Corporation or are unable to use its facilities for surgery/treatment.
  

Repay a housing loan for a house in the name of self, spouse or owned jointly:

• You should have completed at least 10 years of service.
• You are eligible to withdraw an amount that is up to 36 times your wages.
  

Alterations/repairs to an existing home for house in the name of self, spouse or jointly:

• You need a minimum service of five years (10 years for repairs) after the house was built/bought.
• You can draw up to 12 times the wages, only once.
  

Damage due to natural calamity:

• You can withdraw up to Rs 5,000 or 50% of your contribution to the provident fund.
• You have to apply within four months of the calamity.
• As proof, you need a certificate of damage from the requisite authority and a calamity declaration by the state government.
  

Construction or purchase of house or flat/site or plot for self or spouse or joint ownership:

• You should have completed at least five years of service.
• The maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary.
• Can be avail of it just once during the entire service.
  

Equipment purchased by physically handicapped employees:

• You can draw up to six months’ basic salary and dearness allowance, or your share of PF contribution with interest, or the cost of equipment.
• You will have to submit a medical certificate.
  

Posted in: EPF Information,EPF Interest,EPF Tax,EPF Uses