Recently new EPF Withdrawal Rules came into existence where you are allowed to withdraw 75% accumulated corpus if you are unemployed for more than a month.
But before moving forward, please take the note of earlier notification which I explained in my blog post “Tax on EPF after resign, retire or terminated” for better understanding of taxation on EPF after you resign, retire or terminated.
In this new notification, a new clause, 68HH has been inserted after para 68H in the 1952 EPF act. Clause 68H refers to the grant of advances in special cases like your company closure for more than 15 days or 6 months (Refer THIS for more details).
New EPF Withdrawal Rules 2019
As I mentioned above, a new clause 68HH has been inserted along with the existing 68H in the 1952 EPF Act.
The new clause 68HH refers as below.
“68HH. Non-refundable advance to a member in case of continuous unemployment for a period of not less than one month.- The Commissioner or, where so authorised by the Commissioner, any other officer subordinate to him, may permit a member, on ceasing to be an employee in any factory or establishment to which the Act applies, a non-refundable advance up to seventy-five percent of the amount standing to his credit in the Fund, if he has not been employed in any factory or other establishments for a continuous period of not less than one month immediately preceding the date on which he makes an application for such non-refundable
From above notification we can arrive at the judgement of below points.
# You are allowed to withdraw a NON REFUNDABLE 75% of accumulated EPF corpus if you are unemployed for more than a month.
# Such advance is NON-REFUNDABLE. Means you can’t pay it back to EPFO. Once you withdraw this advance then it is your’s. Hence, act wisely before opting this feature.
# Here one month period means it is from the date of an application for such non-refundable advance is applied for.
# Even after such withdrawal is made, the person will remain part of the EPF and eligible for pension benefits.
Keep note of the point also that, along with newly inserted clause 68HH, the earlier para 69(2) that allows 100% withdrawal after two months of continuous unemployment is still in effect. Women resigning to get married can withdraw 100% without waiting for two months.
Hence, it is clear that if one is unemployed for more than a month, then he can withdraw 75% of non-refundable advance from EPF corpus and still continue to be the member of EPF along with EPS benefits.
However, the earlier para of 100% of withdrawal in case of one is unemployed for more than two months is also still active.
Also, women employees resigning to get married can withdraw their 100% without waiting for two months.