Big news for home buyers, now you can withdraw up to 90 percent of the funds for down payment or EMI.

PF Withdrawal Rule: If you are employed and planning to buy a house, then there is a good news for you. The government has recently changed the rules of PF withdrawal. This has made it easier for salaried employees who wish to buy a house to withdraw money.

Members will get relief from the new rule

According to the new Para 68-BD of EPF Scheme, 1952, now EPFO subscribers can withdraw up to 90 percent of their funds to buy a house after 3 years of opening their PF account. This includes down payment, construction and EMI expenses.

Earlier, members were allowed to withdraw money only after five years. Before this rule, the calculation of EPFO withdrawal to meet the needs of the house was done on the basis of the contribution of both the employer and the employee in 36 months and the interest received on it, whichever is less. Under the previous rule, the member enrolled under any housing scheme was not allowed to withdraw funds.

What is the purpose of this change?

The purpose of this change is to relax the rules, reduce the difficulties faced at the time of down payment, unlock dormant savings and provide more convenience to EPFO ​​members to buy a house. However, this withdrawal facility will be available only once in a lifetime. This was about buying a house, many other important changes have been made to make PF withdrawal easier.

Major changes related to PF withdrawal

The biggest facility is that from June 2025, EPFO ​​members will be able to withdraw up to Rs 1 lakh instantly through UPI and ATM to meet any of their needs in times of emergency.

The auto settlement limit has been increased from Rs 1 lakh to Rs 5 lakh.

The claim process has also been made easier. Earlier, claims were scrutinized on 27 parameters. Now, document verification will be done on only 18 points. In 95 percent of cases, claims are being settled within 3-4 days.

The process of withdrawing PF for these essential expenses has now been made much easier than before, which has improved the liquidity of employees.