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EPFO Increases Limit for Medical Emergencies to ₹1 Lakh; Know How To Claim

25 June 20246 mins read by Angel One
With effect from April 16, 2024, the Employee Provident Fund increased the eligibility limit for PF withdrawal for medical emergencies from ₹50,000 to ₹1,00,000. Get the details in this article.
EPFO Increases Limit for Medical Emergencies to ₹1 Lakh; Know How To Claim
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The eligibility limit for Employee Provident Fund (EPF) withdrawal regarding medical emergencies has been moved up to ₹1,00,000 from the previous limit of ₹50,000. This change has been made under Paragraph 68J of Form 31 under the EPFO rules, which allows the contributor to request an advance for coverage of medical expenses – either for themselves or their dependents (child, father, mother, wife etc).

The EPFO (Employee Provident Fund Organisation) ‘s step of increasing the qualifying limit to ₹1,00,000 applies to all active EPF subscribers employed in any sector. The EPFO circular issued on April 16, 2024, stated that this change was administered to the application software on April 10, 2024.

This article describes the details of this change in the EPF withdrawal for medical emergencies.

What Is the Paragraph 68J and Form 31 Under EPFO Rules?

Form 31 of the EPFO is designated for partial withdrawals and can be used for several reasons, such as marriage, purchasing or constructing a house, and withdrawing funds for medical treatment.

Under this form, we have various paragraphs, each giving the details pertaining to a withdrawal for a specific reason. Paragraph 68J helps subscribers apply for a partial online withdrawal in the case of a medical emergency.

Conditions for Withdrawal

The contributor can apply for the medical expenses related to themselves or their dependents. However, this EPF withdrawal can only be claimed under the following medical conditions:

  • Hospitalisation lasts for one month or more.
  • Major surgical operations.
  • Ailments such as leprosy, tuberculosis, cancer, paralysis, mental derangement or heart ailments.

However, the account holder becomes ineligible to withdraw funds if their Provident Fund Account has a balance of less than ₹1,00,000.

Payable Amount

The amount payable to the contributor sums up to either 6 month’s basic wages with dearness allowance or the employee’s share in the account with interest (whichever is less).

Note: The account holder no longer needs to provide a proforma, medical certificate or any other document to be eligible for claims of advance under Paragraph 68J of Form 31.

How To Claim EPF Withdrawal Online?

The Employee Provident Fund Organisation has introduced the Universal Account Number (UAN) system to streamline the process of EPF online claims. This system enables subscribers to submit their claim forms. For this purpose, the account holder needs to link the UAN with the bank account and the Aadhar number to eliminate the need for employer attestation.

The contributor is required to use the Form 31 format to claim premature fund withdrawals. Under this form, withdrawal requests may be exercised for medical emergencies, marriage, constructing a home, etc.

The following describes the process of carrying out an EPF withdrawal online:

  • The account holders are required to log in from the EPFO Portal using the UAN (Universal Account Number) assigned to them.
  • The KYC (Know Your Customer) details and the service eligibility information should be up to date and complete.
  • After reaching the page, the account holder can choose the type of claim they wish to avail (in this case – medical emergencies).
  • Next, the account holder’s identity needs to be verified by entering the one-time password sent on the mobile number registered with UIDAI.
  • If any further information or documentation is required, the account holder will be given the prompts.
  • After completing the prompts, the claim is submitted to the EPFO.

Why Utilise EPFs for Medical Emergencies?

Using your EPF for medical emergencies can offer several advantages:

  • Reduced Finance Burden: Using a part of your EPF corpus for your medical emergencies can help cover a whole/part of your medical bills, thereby reducing the financial strain on the employee as well as their family.
  • Partial Withdrawal: Instead of withdrawing the entire corpus, this facility avails withdrawal of a part of your provident fund corpus unlike certain fixed deposits or mutual funds with lock-in periods.

Factors To Consider Before Withdrawing EPF Corpus

  • Tax Implications: Premature withdrawals from the EPS corpus, if done over a certain amount or before the stipulated time period are eligible for taxations. This cuts out a part of your withdrawal, reducing the financial aid it provides.
  • Impact on retirement savings: Such premature withdrawals can take out a chunk of your retirement corpus and cause a setback in your savings plan.
  • Liquidity: Withdrawing from the provident fund can take more than two weeks to be processed. Typically, it may take even 20 days to process the claim, making it not the best option for withdrawal in case of medical emergencies.
  • Other avenues: Other avenues can be explored to source funds to cover up for medical bills. These avenues include equity stocks, mutual funds, and fixed deposits. You can also build an emergency fund to cover up for you.


Premature withdrawals from your EPF corpus can help you remove the financial burden during medical emergencies. However, certain implications need to be considered. These implications include potential tax liabilities, longer processing time, impact on retirement savings, etc.

Employees might also explore other financial avenues to ensure a well-rounded strategy for managing medical expenses. Investing in marketable securities can help you create a contingency fund for such emergencies. Avoid tampering with your retirement savings. Open a Demat account with Angel One and start investing!


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