EPFO: EPFO issues a warning against the withdrawal of PF for false reasons..
EPFO News: If you're thinking of withdrawing your PF funds for luxury shopping or spending on a foreign trip during the festive season, beware! The EPFO has clearly warned that misuse of PF funds can be costly. The Employees' Provident Fund is solely for your safety and essential needs.
If withdrawals are made for the wrong reason, the EPFO can withdraw the amount and impose penalties. It can also send a notice and seek recovery. Yes, the EPFO shared this information in a post on the social media platform X.
The EPFO wrote,
"Withdrawing PF funds for the wrong reason can lead to recovery under the EPF Scheme, 1952. Protect your future and use PF funds only for essential needs."
This means that the money you've saved through hard work should only be used for approved purposes, such as marriage, education, illness, or home purchase.
When can you withdraw PF funds, and when can you not?
According to EPF rules, if you withdraw PF funds to buy a house, build a house, or purchase a flat, but then use the money for something else, the EPFO can recover that amount. Penal interest may also be charged on that amount.
Serial Number Type of Advance Service Eligibility
1 Housing Loan/Purchase or Construction of Site/House/Flat (Para 68B) 60 months service
2 Factory Lockout/Closure (Para 68H) 0 months service
3 Illness of Self/Family (Para 68J) 0 months service
4 Marriage - Self/Son/Daughter/Brother/Sister (Para 68K) 84 months service
5 Post-Matric Education of Children (Para 68K) 84 months service
6 Natural Calamity (Para 68L) 0 months service
7 Power Outage in Institution (Para 68M) 0 months service
8 Equipment for Physically Handicapped (Para 68N) 0 months service
9 One year before retirement (Para 68NN) Age 54+ years
10 Investment in Senior Citizen Pension Insurance Scheme (Para 68NNN) Age 55+ years
EPF Rules According to Section 68B(11), if a withdrawal is misused, no new withdrawals can be made for the next three years or until the full amount is recovered.
How to Claim Online?
The UAN must be active, and the mobile number must be working.
Aadhaar details must be in the EPFO database.
The bank account and IFSC must be linked with the EPFO.
Members with less than five years of service must link their PAN for the PF final settlement.
Auto-settlement limit increased from ₹1 lakh to ₹5 lakh
The EPFO increased the auto-settlement limit from ₹1 lakh to ₹5 lakh in June 2025 (EPFO PF withdrawal rules 2025). Every employed person must withdraw PF only for genuine needs. Misuse can lead to significant losses and penalties in the future.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
