If you’re a salaried employee thinking about buying a house, there’s a positive update for you.
The government has made changes to the Provident Fund (PF) withdrawal rules, making it easier to access your savings for home-related expenses.
Under the new rule, according to Para 68-BD of the EPF Scheme, 1952, employees can now withdraw up to 90% of their PF balance after just 3 years of opening their account.
This amount can be used for the down payment, construction, or EMI payments on a house.
Previously, this facility was available only after 5 years. Earlier, the withdrawal amount was calculated based on the lower of two options: the total contribution (employee + employer) for 36 months or the interest earned on it.
Also, people enrolled in housing schemes couldn’t use their PF for home buying.
Purpose and Other Major Changes in PF Withdrawal Rules
The main aim of this rule change is to make home buying easier, reduce the burden of arranging down payments, unlock idle savings,
and offer more convenience to PF account holders. However, it’s important to note that this home-buying withdrawal can only be used once in a lifetime.
Along with this, several other changes have been made to simplify PF withdrawals:
Instant Withdrawal Facility: Starting June 2025, EPFO members can instantly withdraw up to ₹1 lakh using UPI or ATM in case of emergencies.
Higher Auto Settlement Limit: The limit for automatic claim settlements has been increased from ₹1 lakh to ₹5 lakh.
Faster Claim Process: The number of verification checks has been reduced from 27 to 18 points, making the process faster. In fact, 95% of claims are now settled within 3 to 4 days.
Overall, these changes aim to make PF withdrawals quicker and more accessible, especially during emergencies and important life events like purchasing a home.
