Withdrawal from Provident Fund though permissible but it should be avoided - The Employees Provident Funds and Miscellaneous Provisions Act, 1952
The Employees' Provident Funds & MP Act is a beneficial piece of legislation and can be described as a social security statute, the object of which is to ensure better future of the employee concerned on his retirement and the benefit of the dependents in case of his earlier death. The amount is payable in one lumpsum and as a matter of fact it acts as a buffer on the retirement or on the death of an employee.
Facility for withdrawal :- Nevertheless, Employees' Provident Fund Scheme provides that in case of dire need of money a member can seek withdrawal to meet the exigencies like:
a) For the purchase of a dwelling house/flat or for the construction of a dwelling house including the acquisition of a suitable site for the purpose.
b) For repayment of loans in special cases.
c) For the repayment, wholly or partly, of any outstanding principal and interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse from a State Government, registered Co-operative Society, State Housing Board, Nationalised Banks, Public Financial Institutions, Municipal Corporation or anybody similar to the Delhi Development authority solely for the specified in sub-paragraph (i) of paragraph 68B.
d) For the purchase of a dwelling house/flat or the construction of a dwelling house including the acquisition of a suitable site by the member.
e) For grant of advances in special cases i.e. lock out or closure of factory or establishment. In case an employee does not receive his wages for a continuous period of two months or more, these being for reasons other than a strike.
f) For illness and certain cases. In case of (a) hospitalization lasting for one month or more or (b) major surgical operation in a hospital etc.
g) For marriage or post-matriculation, education of children. Advance from his or her provident fund account not exceeding fifty percent of his or her own share of contribution with interest thereon, standing to his or her credit in the Fund on the date of such authorization, or his or her own marriage, the marriage of his or her daughter, son, sister or brother or for the post-matriculation education of his or her son or daughter as stated in para 68K.
h) Advance in abnormal conditions such floods, earthquakes or riots, authorize payment to him from the provident fund account, a non-refundable advance of rupees five thousand or fifty percent of his own total contribution including interest thereon standing to his credit on the date of such authorization, whichever is less to meet any unforeseen expenditure.
i) For purchase of Plot/Flat/ from any recognized society, alteration/paying to housing agency/under para 68B, 68BD, etc.
j) Under the new housing Scheme launched, not only the PF accumulatiens are paid, but the monthly PF contributions receivable are adjusted against monthly EMI's payable to Housing agencies/banks, etc. For further details refer to Para 68 of the EPF Scheme, 1952.
Despite above facilities, it is desirable and in the interest of the member to meet the exigencies through other avenues since the member has numerus benefits like:
i) To utilise the accumulations at oldage/retirement.
ii) To be entitled to the benefits like eligibility of Employees’ Pension Scheme with 10 years contributing service; death Insurance and security to the nominee etc.
Moreover, for those resigning or changing jobs, it is requested to advise (your outgoing employees) for transfer of accumulations. It is intimated that the transfer process has been simplified viz. F/13 can be attested either by present/previous employer, automatic and online transfer online facility with UAN/Aadhar linkages, etc.
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