PF withdrawal for this reason not allowed!

EPF balance will no more cover your Covid treatment!

EPF subscribers will no longer be allowed to withdraw funds from their PF accounts for covering COVID-19-related expenses. If somebody gets diagnosed with the life threatening disease, then, they will be no longer allowed to withdraw funds to cover up their treatment cost. They will now have to pay from their bank account. Although, if they have a health insurance policy, then, they might get insurance coverage, according to a report in The Economic Times. Though there has been no official confirmation on this.

The GoI had rolled out ‘Covid Advance Facility’ back in 2020 when cases were rapidly rising in the country. Subscribers could directly go on Covid widget on EPFO website to withdraw funds. But, now, that cases have subsided, the government has decided to roll back this feature. Although, even today, people can withdraw PF balance as and when they want for other valid reasons. Whatever amount they withdraw they will have to give tax on it. They will have to add it to their annual income and pay tax on the whole amount.

But you can always withdraw PF balance for following reasons:
a. Family members’ marriage
b. Children education
c. Health emergency

d. Home construction

e. Loss of job

According to EPFO, as of October 31, 2023, there were more than six crore people who work in the formal sector of the country.

Every month, your employer contributes 12 per cent of your monthly salary towards your PF account. Apart from it, another 12 per cent of your salary is contributed towards the same. Out of the employer’s 12 per cent contribution, 8.33 per cent is contributed towards EPS. This is used to pay pension in post retirement life.