Paragraph 68J of EPFO Rules allows EPF subscribers to request for advances for medical expenses for both themselves and their dependents
The Employees’ Provident Fund Organisation (EPFO) has increased the threshold limit for partial withdrawal for medical emergencies from Rs 50,000 to Rs 1 lakh. The EPFO allows partial withdrawals for several reasons, one of them being medical emergency. Paragraph 68J of EPFO lays down the rules regarding getting an advance on one’s EPFO balance to meet the medical costs of self or dependents.
Here are the steps to make a claim
Subscribers need to visit the EPFO’s unified portal, log in using his/her UAN and password, go to ‘online’ services, and then select the ‘claim’ section and file a claim for withdrawal.
Next, the subscriber has to verify the bank account.
The next step is to upload a scanned copy of the cheque or passbook.
Once, that is done, the subscriber has to choose the purpose for making the withdrawal. There are several reasons for which one can make a partial withdrawal. These include, non-receipt of wages for two months, wedding expenses of self or children, purchasing or constructing a house, and medical emergencies.
After this, the subscriber has to provide the Aadhaar-based OTP, and submit the claim.
Once the submission is done, the claim is sent to the employer, who then approves it. Once approved, the amount is credited to the subscriber’s bank account.
To monitor the status of the claim, the subscriber can go to the ‘online’ section and check ‘claim status’.
Typically, it takes about 15-20 working days for the EPFO to process the claim if the subscriber’s know your customer (KYC) is in order.
Says Anant Ladha, founder, Invest Aaj For Kal, a financial advisory firm: “Increase in the withdrawal limit for medicinal emergency is a welcome step. The EPFO has ordered to enhance the existing eligibility limit of 68J claims for withdrawal from Rs 50,000 to Rs 1 lakh. Subject to the limit of Rs 1 lakh, subscribers are authorised to claim for withdrawal of six months’ basic wages and dearness allowance (DA), (or employee share with interest), whichever is lower.”