Can a Contract Employee Withdraw PF for Buying a Plot Before 5 Years of Service?

One of our contract employees wants to withdraw from PF contributions for the purchase of a plot. She joined last year in October 2014. My question is, can she withdraw money from her contributions? Our contractor mentioned that she can withdraw money only if she is "resigned"; otherwise, she should complete 5 years of service. Kindly provide me with a good suggestion regarding this question.

Dear Mr. Santosh,

As per 68(B), towards house construction/purchase/plot purchase, etc., non-refundable loan is admissible. Minimum service required: 5 years. Amount to be disbursed: 100% of both employee and employer contribution.

Abbas.P.S

Hi Mr. Santhosh,

She is not eligible to withdraw her PF amount because in order to withdraw the amount for the said purpose, the employee should have served at least 5 years of membership with the PF.

With Regards,

Mr. Thumbs Up

In most of such cases, they show the member as resigned and settle his PF amount, which he can use for his contingencies. Therefore, they show that person as newly joined with a new PF number. This is a wrong practice and should not be encouraged. To be eligible for withdrawal, a member should have a minimum of 5 years of membership as per PF rules.