EPF- Reasons When you can Apply for Non-Refundable EPF Advance and How to Make a Claim

The Employees' Provident Fund Organisation (EPFO) is the statutory body under the Ministry of Labour and Employment of the Government of India responsible for the regulation and management of provident funds in India. The EPFO is in charge of the mandatory provident fund. Under certain conditions, India's retirement fund body EPFO allows its subscribers to withdraw non-refundable advances from their EPF account. According to the EPF rules, an EPFO member can withdraw up to 75% of the outstanding EPF balance or three months basic pay plus Dearness Allowance (DA), whichever is less. Employees' Provident Fund (EPF) rules allow you to withdraw funds from your account for a variety of reasons. You can begin withdrawing funds from your EPF account once you reach the age of 55. However, you can withdraw funds from your EPF account before retiring for a variety of reasons. Here are the situations in which you can request a non-refundable epf withdrawal.

Non-refundable EPF advances are available to EPF members for the following reasons:

Housing loan/site/house/flat purchase or construction-

EPF members can obtain an advance for purposes such as purchasing land for house construction, purchasing a house, constructing a house, renovating a house, and repaying a housing loan. The withdrawal limit varies with each withdrawal. The limit for land is 24 times the monthly basic salary plus dearness allowance. It is up to 36 times the monthly basic salary plus dearness allowance for a house.

unemployment

In such cases, up to 75% of the EPF balance, including the member's portion, the employer's share, and the interest, is payable. The remaining 25% can be withdrawn after two months of unemployment.
EPF members can withdraw advance funds for the purpose of marrying themselves, their sons, daughters, brothers, and sisters. After 7 years of EPF participation, the employee's contribution is reduced to 50% with only interest.

Post matriculation education of children-

Children's post-matriculation educationEPF members can withdraw for higher education after class ten. After 7 years of EPF membership, 50% of the employee's portion of the contribution, plus interest, is returned to them.

One year before retirement-

After the member turns 54, or within one year of his or her actual retirement on superannuation, whichever comes first. Up to 90% of the EPF balance, including the member's share, the employer's contribution, and interest

Investment in varishtha pension bima yojana (VPBY)

After the age of 55, members can invest up to 90% of their EPF balance (member's portion, employer contribution, and interest)

Unemployment of not less than 1 month

After the member turns 54, or within one year of his or her actual retirement on superannuation, whichever comes first. Up to 90% of the EPF balance, including the member's share, the employer's contribution, and interest

Outbreak of pandemic (COVID-19)

If a person is experiencing financial hardship as a result of the coronavirus and pandemic-induced lockdowns, the government has declared that they can withdraw a predetermined amount from their Employees' Provident Fund (EPF) account. The labour ministry announced in May 2021 that EPF members can receive a second non-refundable advance from their EPF accounts to cover financial problems caused by the coronavirus.

Other reasons-

• Natural calamityLockout
• closure of factory
• Illness of member/ family
• Cut in electricity in establishment
• Purchasing equipment for physically handicapped

The procedure for requesting a non-refundable EPF advance withdrawal:

• Go to the unified EPFO portal unifiedportal-mem.epfindia.gov.in/memberinterface;
• Go to the online service claim (Form 31, 19, 10C & 10D);
• Upload a bank cheque leaf with your name on it;
• Click on the submit button for final submission.

An EPFO member can also use the Umang App to claim this EPF withdrawal. They can repeat the above procedure by logging in to the Umang App with their UAN and the OTP received on their registered mobile number.