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Withdrawals And Advances Under EPF

Sunday, November 2nd, 2014 Amritesh no responses

Subscribers to Employees’ Provident Fund are eligible for Withdrawals and Advances subject to certain conditions relating to service and purpose for availing it. You may also read about Employees’ Provident Fund in the Link provided below:-

Universal Account Number (UAN): Guidelines for Subscribers

Employee Deposit Linked Insurance Scheme (Amended)


Employees’ Provident Fund Scheme

Employee State Insurance (ESI)


Employees’ Pension Scheme (Series-1)

Employees’ Provident Fund (EPF) Reforms: Online PF Withdrawal/Settlement


Withdrawal and Advances are available to the Employees’ for the following Purposes:-

Marriage/Education
Treatment
Purchase or Construction of Dwelling House
Repayment of Housing Loan
Addition/Alteration of House
Repair of House
Lockout
Withdrawal Prior Retirement
Other Advances

For Marriage/Education

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68K
Marriage of :-
Self
Children
Siblings
Education of :-
Self
Children
Completed 7 years of Service. Loan available 3 times in entire service period.
Same as Above
50% of the Employee Share at the time of applying.
Same as Above
Apply through Form No 31along with submission of Wedding Invitation Card as proof.
Submission of bonafide certificate indicating Fees to be paid to the Educational Institution along with Form 31.

FOR TREATMENT

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68J
For Treatment of:-
Self
Family
(Includes Spouse, Parents, Children)
Whenever treatment is required.
Certificate from ESI or Employer that ESI facility is not available to the member.
A Certified Medical Practitioner certifying the necessity of the treatment.
In some illness certification of Specialist Doctor is also required.
6 times of Wages or Full Contribution of the Member
(Whichever is Less)
Proof of Illness accompanied by Form 31.

PURCHASE or Construction of Dwelling House

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68B(1)
Purchase or Construction of Dwelling House or Flat.
Should have completed 5 years of Service.
Allowed only once during Service.
Should be self owned or co-owned with spouse.
Should not be co-owned by anybody other than the spouse.
36 times of the Wages.
Apply in Form 31 along with Proforma Obtained with  Approval and Signature.

REPAYMENT OF HOUSING LOAN

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68BB
Repayment of Housing Loan
Should have completed 10 years of Service.
Allowed only once during Service.
Should be self owned or co-owned with spouse.
Should not be co-owned by anybody other than the spouse.
36 times of the Wages
Apply in Form 31 along with Proforma Obtained with  Approval and Signature.

For Purchase of Site/Plot

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68B (b)
Purchase of Site/Plot
Should have completed 5 years of Service.
Allowed only once during Service.
Should be self owned or co-owned with spouse.
Should not be co-owned by anybody other than the spouse.
24 times of wages
Copy of Purchase Agreement.
Apply through Form 31.
Prescribed application by Member.

Addition/Alteration of House

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68B(7)
Addition/Alteration of House
Should have completed 5 years of Service.
Allowed only once during Service.
Should be self owned or co-owned with spouse.
Should not be co-owned by anybody other than the spouse.
12 times of Wages.
Apply through Form 31 along with required Certificates.

REPAIR OF HOUSE

Advances
Under
Purpose
Eligibility
Maximum Admissible Amount
Documents Required
Under Para 68B (7)
Repair of House
Should have completed 5 years of Service.
Allowed only once during Service.
Should be self owned or co-owned with spouse.
Should not be co-owned by anybody other than the spouse.
Construction/Completion Certificate should be submitted.
12 times of Wages.
Apply through Form 31 along with required Certificates.
LOCKOUT

If the company is closed for more than 15 days and wages have not been paid for last 2 months then Advance equivalent to wages multiplied by no of months the firm is closed can be availed. Application through Form 31.

Withdrawal Prior Retirement

Withdrawal can be made 1 year before retirement when Subscriber is 54 years old. 90% of the Total share can be withdrawn and one can apply through Form 31 along with retirement age certificate.

Other Advances

Some advances are also admissible in case of Power Supply Cut and upto 50% incase of any Natural Calamities. I case of latter application through Form 31 should be made within 4 months.

Important Points

The amount allowed as advance/withdrawal is not required to be refunded under normal circumstances. If the amount is not used, the same should be refunded with penal interest. A minimum balance in the account is kept before arriving at the amount of advance admissible subject to the above conditions.
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Amritesh is an experienced professional in the field of HR, Finance and Compliance. He is currently working in the IT Industry with an US based firm. He took up Blogging as a hobby which eventually turned into passion. He primarily focuses on topics related to Personal Finance, HR, Compliance and Technology.

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