The Employees’ Provident Fund Organization (EPFO) has provided significant relief to its members.
Employees can now withdraw an advance of up to Rs 1 lakh from their PF account for medical emergencies.
This is double the previous limit of Rs 50,000. The withdrawal is facilitated under EPF Form 31, as mentioned in a circular issued on April 16, 2024.
What is Para 68J?
Para 68J allows partial withdrawal from the PF account for medical expenses of the employee and their family.
This includes costs for hospitalization for one month or more, major surgeries, and treatments for serious diseases like tuberculosis (TB), cancer, and paralysis.
If an employee has sufficient funds in their PF account, they can withdraw up to Rs 1 lakh. If the balance is less, they can only withdraw the available amount.
How to Withdraw Money Using Form 31
EPFO Form 31 is used to withdraw funds for essential needs such as marriage, house construction, and medical expenses.
To withdraw money, the employee must provide documents certified by both their employer and doctor, confirming the medical expenses.
EPFO’s New Online Facility
EPFO has introduced an online system with the Universal Account Number (UAN). This allows employees to submit their claims directly online.
To use this facility, UAN must be linked with Aadhaar and the employee’s bank account.
The claim process involves logging into the EPFO portal, followed by OTP verification, making it simple and convenient.
Other Withdrawal Rules
In addition to medical expenses, EPFO allows withdrawals for other reasons under different rules. For instance:
Para 68B: For purchasing a house or repaying a home loan.
Para 68K: For children’s marriage or higher education.
Para 68N: For buying medical equipment for disabled individuals.
In some situations, withdrawals can also be made before retirement.
