75% of EPF can be withdrawn just after a month of unemployment

POSTED BY vandana ON January 8, 2019 COMMENTS (2)

EPF is a long term retirement saving scheme. Therefore, it can be withdrawn fully(100%) only after retirement. And early retirement is not considered until the person reaches 55 years of age. However, if you get unemployed for a period of not less than 2 months, then as per old rule of section 69(2) of EPF act, you can withdraw 100% of EPF balance outstanding in your account.

Now, EPFO has made the provident fund withdrawal rules more flexible for cases of job loss and inserted a new rule under section 68HH.

EPF withdrawal rules old v/s new comparison

A new clause, 68HH has been inserted after para 68H in the 1952 EPF act

As per this, If a person has been unemployed for a period of not less 1 month can withdraw upto 75% of EPF balance outstanding in his account as on date. The section says that, even after such withdrawal is made, the person shall remain part of the EPF and eligible for pension benefits. However, the advance cannot be remitted back into the EPF i.e. it will be non-refundable.

In addition to this, the circular clearly states that para 69(2) (old rule) is still continuing. That means, after two months of continuous unemployment, 100% of EPF withdrawal is allowed. However, the waiting period of 2 months does not apply in cases of woman retiring from services for the purpose of getting married. The snapshot of circular is given below,

snapshot of circular of section 68HH of EPF

Do you think this small change in the rule of EFP withdrawal, would be beneficial on a larger scale?? Let us know your views in the comment section.


2 replies on this article “75% of EPF can be withdrawn just after a month of unemployment”

  1. Jeffry says:

    This change is for good. Mostly on sudden job loss, folks will get a month or two severance. Once this is exhausted and no new jobs in hand, this rule will definitely help to start afresh.

    1. Vandana Manwani says:

      Thanks for your comment Jeffry .. Please keep sharing your views like this..


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