The Employees’ Provident Fund Organization (EPFO) has introduced a significant update for its members.
Now, employees can withdraw up to Rs 1 lakh in advance from their PF accounts for medical emergencies. Previously, this limit was Rs 50,000, meaning the benefit has now doubled.
This provision falls under EPF Form 31, and the change was officially announced in a circular on April 16, 2024.
What is Para 68J?
Under Para 68J, employees are allowed to partially withdraw funds for medical expenses for themselves or their families.
This includes medical conditions such as hospitalization for a month or more, major surgeries, or serious illnesses like tuberculosis (TB), cancer, or paralysis.
Employees with sufficient balance in their PF accounts can withdraw up to Rs 1 lakh. If the balance is lower, they can withdraw the available amount.
How to Withdraw Money Using EPFO Form 31
EPFO Form 31 is primarily used for various essential purposes such as marriage, buying or building a house, and medical expenses.
To withdraw money for medical reasons, employees must provide documentation from both their employer and a doctor to verify the medical costs.
New Online Facility by EPFO
EPFO has made the process of claiming funds easier with the introduction of the Universal Account Number (UAN) system. Employees can now file claims directly online.
To use this service, it’s essential to link UAN with both Aadhaar and the employee’s bank account.
After logging in to the EPFO portal, the claim can be completed following OTP verification.
Other Withdrawal Rules
In addition to medical expenses, EPFO allows withdrawals for several other purposes:
Para 68B: For purchasing a house or repaying a home loan.
Para 68K: For children’s marriage or higher education.
Para 68N: For purchasing medical equipment for disabled individuals.
In some cases, employees can also withdraw funds before retirement under certain circumstances.
This change in PF withdrawal rules provides a substantial financial cushion for employees facing unexpected medical expenses, offering quicker and easier access to their savings.
