EPF or Employee Provident Fund Scheme is a government savings scheme under the EPF Act 1952. EPFO is a part of the Ministry of Labour and Employment and manages this scheme wherein both employees and employers make monthly payments. This money keeps accumulating in the PF account of the employee and can be utilised as pensions and for emergencies. 

Nowadays, the government allows online PF withdrawals that take only three days compared to 20 days from the offline method. But, PF withdrawal, whether offline, online or through the app, is subject to specific rules and regulations. 

Let’s get to know more about the various employee benefits of PF and its associated rules with it.

Pro-Tip: According to Budget 2022, the EPF rate for 2022-23 was declared 8.1%. But unfortunately, it is the lowest since 1977-78 when it was just 8%!


What Are The Various Employee Benefits From PF?

Here is a summary of the various employee benefits from PF:



Withdrawal Limit

Payment of housing loan for the construction or purchase of house/ land/ flat

Min. 60 years of service

  1. Up to 36 months of basic + DA, or
  2. total of employee and employer’s share with interest
  3. House’s total cost

Marriage of self/ son/ daughter/ brother/ sister/ or for post-matriculation education of children

Min. 84 months of service

Up to 50% of the EPF savings

One year before retirement

The employee should be above 54 years of age

Up to 90% of the EPF savings

Medical expenses/ Natural calamity/ purchase of equipment by physically challenged/ closure of factory/ electricity cut in establishment

No min service tenure

  1. Up to 6 months of basic + DA
  2. The complete contribution


Let’s discuss these in detail.

#1: Medical Treatment:

Medical treatment is one of the most crucial employee benefits of online PF Withdrawal.

You can always draw money for treatment purposes, even if you have completed one or two years in an organisation.

You can still withdraw money if you have not completed that much time in your organisation, provided it meets the following conditions:

  • Major surgery in a specific hospital
  • Your hospitalisation period is more than a month
  • The individual is suffering from TB, Mental Derangement, Heart Problems, Leprosy, Paralysis, Cancer, etc. and is on leave which the employer has granted.

Whatever the case be, you can withdraw a max of 6 months’ salary. The amount may not be much, but an added advantage is that it can be enjoyed as many times!

#2: Marriage Purposes:

This withdrawal is valid only after seven years of service. You can withdraw up to 50% of your savings at a time, and this benefit can be enjoyed for a max of three times.

You can withdraw for the following purposes:

  • Own wedding
  • Child’s wedding
  • Sibling’s wedding

#3: Construction or Purchase Of House or Property

Online PF Withdrawal, in this case, is subject to the following rules:

  • The land or house in consideration must be your name, your spouse’s name, or jointly in both your names. No other combination is feasible.
  • You have completed five years of service.
  • The max withdrawable amount is 24 times your monthly salary.

Note: The property in question should not be under dispute. Also, it should be a registered property, and proof will also be required.

#4: Repaying The Existing Home Loan

Withdrawal, in this case, is subject to the following terms and conditions:

  • You must have completed at least ten years of service.
  • You can avail of this benefit only once.
  • You can either use this benefit or construct/ purchase the house in a lifetime. You cannot avail both employee benefits.
  • You can extract a max of 36 times your monthly salary.
  • Lastly, the property should be in your name, your spouse’s name, or jointly held by you.

#5: Education Purposes

The terms and conditions of this advantage are:

  • You must have completed seven years of service.
  • You can only utilise this for post matriculation educational expenditures like college, university, etc.


Other Reasons For Online PF Withdrawal are:

  1. Alteration or repair of your house
  2. If the employee is unemployed for 60 days or two months or more
  3. If the employee is retiring
  4. If they are moving abroad permanently
  5. If the employee is a female and she is resigning because of pregnancy, childbirth, marriage, etc.

When it comes to employee benefits, some HR software has the perfect module that matches with the organization’s need of managing the financial to its fullest. The beauty is software never disappoints so as the collaborative work of an organization. Manage employees’ financial status with the HROne’s HCM suite at ease.

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