EPFO rule change: New limit for premature withdrawal in case of medical emergency — Check details | Personal Finance News

EPFO has changed an important rule related to premature withdrawals. EPF subscribers are allowed to withdraw their deposits ​before maturity in case of a medical emergency, for marriage, loan repayments, purchasing a house or constructing a house.

EPFO withdrawal rule change. (Photo credit: Pexels/ News9live)

New Delhi: The Employee’s Provident Fund Organisation (EPFO) has changed a rule related to EPFO withdrawal in case of emergency. EPF is deducted and matched by the employer in organised sector jobs. Recently, the EPFO was also reported considering a raise in the minimum wage limit to Rs 21,000 in order to ensure wider EPF coverage.

EPFO rule change for medical emergencies

EPFO ​​has changed the rule for withdrawal related to medical emergencies. The regulator has doubled the limit for medical claims-related withdrawal to Rs 1 lakh from Rs 50,000 earlier, according to a circular dated April 16, 2024. The change came into effect on April 10, 2024 with a software update.

The Central Provident Fund Commissioner (CPFC) gave the green signal for the doubling of withdrawal limit under this head. This amount can be withdrawn using Form 31, which allows partial withdrawal from the EPF corpus. To be sure, EF subscribers can also withdraw funds for the purpose of:

• Marriage
• Loan repayment
• Purchasing a flat
• Constructing a house

The withdrawal of finds for medical emergencies is allowed for the self as well as for relatives of the subscriber. For this Form 31 must be submitted accompanied by a certificate attested by a doctor as well as the employee.

What is Form 31?

Form 31 is the format used to submit premature fund withdrawal requests under different heads ranging from medical emergencies, to marriage and buying or constructing a home.

Here are the paras allowing for premature withdrawal under different categories:

• Para 68B: Allows advance for house purchase/ construction of house
• Para 68BB: Allows premature withdrawal for advance loan repayment in special cases
• Para 68H: Subscribers can made a premature withdrawal request for marriage purposes
• Para 68J: Subscribers can request a sickness advance
• Para 68K: Allows advance for marriage or children’s education
• Para 68N: Allows advance for disabled members
• Para 68NN: Advance claim be made just a year after retirement