New EPFO Rule: PF Holders Can Now Withdraw Up To Rs 1 Lakh For Medical Emergencies

New EPFO Rule: EPFO has raised the eligibility limit for advance withdrawals under Paragraph 68J of Form 31 from Rs 50,000 to Rs 1 lakh to provide better access to funds for medical emergencies

New EPFO Rule: The Employees' Provident Fund Organisation (EPFO) has raised the existing eligibility limit for advance withdrawals under Paragraph 68J of Form 31 from Rs 50,000 to Rs 1 lakh to provide better access to funds for medical emergencies for its members. This increase will help EPF contributors manage expenses related to medical treatments for themselves and their dependents.

The change was announced through an EPFO circular issued on April 16, outlining the updated limit for auto claim settlements under Paragraph 68J.

"The competent authority has approved the limit of auto claim settlements under para 68J from Rs 50,000 to Rs 1,00,000 and the same has also been deployed in the application software on 10/April/2024," stated the circular.

Form 31, Paragraph 68J 

Paragraph 68J allows EPF members to request partial withdrawals under specific medical conditions, including hospitalisation for a month or longer, major surgeries, and serious ailments such as tuberculosis, leprosy, paralysis, cancer, mental derangement, or heart diseases. To be eligible for withdrawal, an employee's PF account must have a balance of at least Rs 1 lakh. Subscribers are allowed to claim either 6 months’ basic wages and dearness allowance (DA) or the employee's share including interest, whichever is less.

The withdrawal process under Paragraph 68J requires Form 31, accompanied by Certificate C signed by the employer and the attending doctor.

UAN system

EPFO has also implemented the Universal Account Number (UAN) system, allowing claim submission without employer attestation. Once their UAN is linked to their Aadhaar and bank account, subscribers can submit claim forms directly to the EPFO after verifying with a one-time password (OTP).

Form 31 offers provisions for partial withdrawals for a variety of purposes. Apart from medical emergencies under Paragraph 68J, withdrawals can be made for repaying loans in special cases (68B), taking advance payments in special circumstances (68H), marriages or post-matriculation education of children (68K), purchasing equipment for the physically handicapped (68N), and pre-retirement withdrawals (68NN).

The recent revision under Paragraph 68J signifies EPFO's commitment to providing its members with greater financial support during medical crises.