Good news for EPF members! The Employees’ Provident Fund Organisation (EPFO) has raised the eligibility limit of 68J claims for withdrawal from Rs 50,000 to Rs 1 lakh. EPF advance under para 68J can be withdrawn for treatment of illness of subscriber or his/her family member.
The EPFO made this important announcement on EPF withdrawal limit for medical treatment in a circular on April 16, 2024. “It is to inform that the Competent Authority has approved the limit of auto claim settlements under para 68J from Rs 50,000 to Rs 1,00,000,” EPFO said.
The decision promises to provide EPF members additional financial freedom.
According to the EPFO circular, the Central Provident Fund Commissioner (CPFC) has already authorized the decision, and implemented it on April 10, 2024, through adjustments in the application software.
Form 31 allows EPF members to make partial withdrawals for a variety of purposes, including marriage expenses, debt repayments, flat purchases, and building a house. Notably, the revised limitation under para 68J now allows withdrawals for medical treatment for the subscriber or their family members.
Subscribers can claim up to 6 months of basic salary and DA (or employee share with interest), capped at Rs 1 lakh. To process such withdrawals, persons must submit Form 31 together with Certificate C, which must be signed by both the employer and a medical practitioner.
Also Read : Not Every EPF Contribution Is Eligible For Section 80C Tax Benefit. Here’s Why
Understanding Form 31
Form 31 serves as the gateway for partial fund withdrawals from the Employees Provident Fund Account. It enables subscribers to apply for withdrawals related to housing, education, medical expenses, and special cases such as loan repayment and advances for physically challenged members.
What is Para 68J?
Para 68J specifically addresses the withdrawal of funds for disease treatment, whether for the subscriber or their family members. The change highlights rising healthcare expenses and the importance of making proper financial arrangements for medical emergencies.
Also Read: EPFO Makes New Rule For Cheque Leaf And Bank Passbook Uploads
In addition to this change in EPF withdrawal limit for medical treatment, EPFO recently introduced the automatic transfer of EPF account balances between jobs, simplifying the transition process for employees switching employers.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing.
