Disabled EPF Members Can Now Withdraw Their Entire PF Balance, Here Is How It Works

The Employees Provident Fund Organisation has eased withdrawal rules for members who become disabled. Fully disabled account holders can take out 100 percent of their balance, while partially disabled members can withdraw up to six months of pay.

For crores of salaried Indians, a PF account is the single biggest cushion they build for the future. Figures from the Employees Provident Fund Organisation (EPFO) show that nearly 8 crore people currently hold a PF account. Money keeps piling up in it for retirement and later needs, but the reassuring part is that you can pull cash out of it when the need arises. The organisation has recently changed its withdrawal rules. Members can now take money out for building a house, illness, marriage, and even in the event of becoming disabled.

The biggest relief in the fresh rules is for account holders who become disabled. According to the organisation, if a member becomes fully disabled and is no longer in a position to work, they are allowed to withdraw the entire balance, 100 percent of it, from the account. Those who are partially disabled can also make a partial withdrawal. What stands out is that this amount is non-refundable, meaning it need not be paid back into the account.

What full disability entitles you to
Under the EPFO provision, a person who becomes fully disabled can withdraw all of the money lying in the PF account, the full 100 percent. The only condition is that the account holder must be completely unable to work. This sum includes the share contributed by both the employee and the employer. In other words, the entire deposit sitting in the account can be taken out.

Who the 25 percent rule applies to
Normally, when you withdraw from a PF account, 25 percent of the balance has to stay parked in it. But this lock-in condition does not apply to those who become fully disabled, who can pull out the whole amount. People who are only partially disabled, on the other hand, are still bound to keep 25 percent of the balance in the account.

How much a partially disabled member can take
If an account holder is partially disabled, they are allowed to withdraw money for treatment and other expenses. Under this, a sum equal to six months of basic salary plus dearness allowance can be taken out. Even so, 25 percent of the total balance in the account must remain untouched at all times.

Paperwork scrapped, money in three days
The organisation has made this kind of withdrawal extremely simple, and no documents are needed for it anymore. Neither a medical document nor any proforma is required. To take out the money, a partially disabled account holder only has to fill Form 31 and attach an affidavit along with it. If the account's KYC and the rest of the paperwork are complete, the money reaches the account within three days.

What this means for you
• For salaried workers: If you become fully disabled, the entire PF balance, including both your and your employer's share, can be withdrawn without keeping the usual 25 percent locked in.
• For partially disabled members: You can draw six months of basic pay plus dearness allowance for treatment, and with just Form 31 and an affidavit the money lands in your account within three days.

Questions & Answers

1. How much can be withdrawn from PF on becoming fully disabled?
In such a case the full 100 percent of the balance can be withdrawn, which includes both the employee's and the employer's share.

2. Does the 25 percent lock-in rule apply to fully disabled members?
No, the 25 percent lock-in condition does not apply on full disability, and the entire amount can be taken out.

3. How much can a partially disabled member withdraw?
A sum equal to six months of basic salary plus dearness allowance can be withdrawn, but 25 percent of the balance must remain in the account.

4. Does the withdrawn money have to be repaid?
No, this amount is non-refundable, meaning it does not need to be deposited back into the account.

5. What documents are needed to withdraw the money?
No medical document or proforma is required, you only need to fill Form 31 and attach an affidavit.

6. How soon does the money reach the account?
If the account's KYC and the rest of the paperwork are complete, the money arrives within three days.

7. How many people hold PF accounts in the country?
According to EPFO figures, nearly 8 crore people currently hold a PF account in the country.

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