The Employees’ Provident Fund (EPF) is a savings scheme that helps employees build a secure financial future. While most people think EPF money is only for retirement, you can actually withdraw it in some special situations. Here are five easy-to-understand conditions where you can use your EPF money before retiring:
1. Unemployment
If you lose your job and remain unemployed for more than a month, you can withdraw up to 75% of your EPF savings. If the unemployment lasts for over two months, you can take out the remaining 25%.
2. Company Closure
When a company shuts down for six months or longer, employees can withdraw the full balance from their EPF account. If the company restarts operations later, the withdrawn amount may need to be repaid in small installments over time.
3. Layoff or Retrenchment
In cases where employees are laid off due to company decisions, they can withdraw up to 50% of their EPF balance. You’ll need to provide some documents as proof of your retrenchment.
4. Work Stoppage
If your company halts work for over 15 days due to an emergency or unforeseen reasons, you can withdraw 100% of your EPF balance.
5. Pre-Retirement Withdrawal
When you turn 54 and are within one year of your retirement, you are allowed to withdraw up to 90% of your EPF savings. This can help you prepare for life after work.
Things to Keep in Mind
These withdrawals are only allowed in specific situations and require proper documents to prove your eligibility. Make sure to follow the guidelines provided by EPFO to avoid any problems.
For more details, visit the official EPFO website or ask an expert for help. EPF isn’t just for retirement—it’s also there to help in times of need!