Can You Withdraw PF Mid-Service for Medical or Housing Needs? Here's When It's Allowed

Dear Mohan,

Yes, it is allowed in specific cases like major medical expenditure or construction of a house.

Regards,
Vishwanath

Viswanathji,

If it is allowed to withdraw PF money in the middle of the service as you have mentioned in specific cases, could you please shed some light on the procedure for the same? Like, which forms need to be filled out and all. I was not aware of this clause.

Regards,
Chaitali

What is the procedure for the withdrawal of PF?

A member of the PF can withdraw the full amount on retirement from service after attaining the age of 55. The full amount can also be withdrawn if:

1. A member who has not attained the age of 55 at the time of termination or resignation from the service.

2. Member is retired on account of permanent and total disablement due to bodily or mental infirmity.

3. On migration from India for permanent settlement or employment abroad.

4. In the case of mass or individual retrenchment.

A member can withdraw up to 90% of the amount of PF after attaining the age of 54 years or within one year before actual retirement, whichever is later.

A member of the provident fund can avail nonrefundable advance for the following purposes:

1. For acquiring or construction of immovable property or for repayment of loans taken from specified agencies for the said purpose.

2. Advances in special cases such as a lockout in the factory/establishment.

3. For the treatment of illness.

4. For marriages or post-matriculation education of children.

5. Financing of member's life insurance policy.

6. Where movable/immovable property gets damaged by a calamity of exceptional nature or accident.

7. For the purchase of equipment required to minimize the hardships on account of a handicap.

Advances/loans for building/purchase of flat or house site/educational purposes require a minimum completion of 5 years and 7 years of membership of the fund. In other cases, there is no requirement of any membership, but the grant of loans in such cases is subject to some conditions specified in the scheme.