EPF Withdrawal for Medical Treatment

Employees’ Provident Fund Organisation (EFPO) recently amended its rules. These new rules came into effect post the Covid-19 pandemic. Since it left plenty of people struggling with the loss of jobs, financial crunch and left many hospitalised, the organisation brought the new provisions. This gave the members easy access to the funds in their EPF account. 

The members now have the option to withdraw an advance up to Rs. 1 lakh. Members can claim EPF loans for medical emergencies. It’s also known as EPF Advance. The best part about this withdrawal scheme is the absence of a minimum service period. However, one might wonder how to avail of this scheme, what the provisions are, what the procedure is etc. Let us understand everything about the withdrawal starting with the procedure.

EPF Withdrawal Procedure

Earlier, one was able to make withdrawals after the hospitals provided the estimates but these rules were amended in 2021.  Now, you are not required to submit any hospital bills in order to get the claim. As per the latest Illness Advance guidelines issued by EPFO,  you can withdraw part of your PF in case of a medical emergency.

In order to get the illness advance, members have to submit Form 31. To fill out the illness advance form you have to:-

• Visit the EPFO website 
• ‘Login’ 
• Click on tab ‘Online Services’
• Select option ‘Claim Form 31’. 

You can also do this by using UMANG App. For this, you have to:-

• Install the ‘UMANG app’ on your phone.
• Enter the ‘UAN Number’ and ‘OTP number’.
• Enter your bank details by going to the KYC details section.
• Enter your address in the employee address tab.
• Claim Form Tab – You need to select Illness for the purpose, amount to be withdrawn,  and upload a copy of the cheque. 

Who is Eligible for EPF Withdrawal for Medical Treatment

As per this plan, members and their families can get this claim. This advance can be taken in advance for over a month. Moreover, under this scheme, you can use the funds for treatments that include hospitalisation, cancer, tuberculosis, leprosy, mental ailments and heart-related problems. These latest guidelines came into effect post the recent pandemic The withdrawal can be made for:-

• Self
• Parents 
• Spouse
• Children

Rules : EPF Withdrawal for Medical Treatment

The rules that are applicable when an applicant applies for EPF withdrawal for medical treatment are as follows. 

• When the member takes treatment from a Private Hospital, they must undergo a background check. The EPFO authority will conduct this. Public Sector or government hospitals or CGHS hospital units. 

• It is mandatory to link the Aadhar Card with the UAN (Universal Account Number). Only then, will you be able to deposit money into your PF account. In case, you do not know how to do it. You do not have to worry. You can do it with their mobile app. 

• Lastly, the withdrawal claims should be equal to 75% of their net balance in their PF account members can now make three months of their basic salary along with dearness allowance, whichever is lower. The employees are allowed to withdraw their share of interest. 

List of Documents and Applications Required

As such, not much documentation is required with these new amendments. So, you do not require documents like hospital bills, estimates from the doctors’ side, medical certificates etc. But is better to keep these documents and applications ready with you. These are:-

• UMANG app 
• You should correctly fill in the details on EPFO’s official website.
• All the members must complete the KYC details before withdrawing their PF amount 
• PAN Card (to ensure that it is linked with your Aadhar Card) 
• Scanned documents stating the purpose for which you have filled the form.

Tax on EPF Withdrawal Explained

Tax – The Income Tax Act permits tax exemption of up to Rs 15,000. This applies to medical reimbursements. Although there are some prerequisites such as:-

• The employee should have spent the amount on the medical treatment.
• The amount should be used for the employee’s own or family’s treatment.

However, the members do not need to produce any bills to take this allowance. Basically, medical reimbursement is a tax-free component. It is exempted up to the amount spent by the employee or Rs 15000, whichever is less.

You May Also Like

Frequently Asked Questions (FAQ’s):-