EPFO (Employee Provident Fund Organization) is a statutory body established by the Government of India under the Ministry of Labour and Employment. It is responsible for the administration and regulation of the Employee Provident Fund (EPF), a retirement savings scheme for employees in India.
Apart from other services, EPFO allows members to withdraw their EPF balance under certain conditions such as retirement, resignation, unemployment, medical emergencies, marriage, education and home loan repayments. EPFO also offers advances for specific purposes, such as the construction or purchase of a house.
For this, employees must have been EPF members for a minimum of 5 years.
EPF members can file advance for the construction of house with the following steps;
- Fill up Form 31, which is available on the EPFO website.
- Attach the following documents with the form:
– Identity proof
-Address proof
-Proof of employment
-Proof of construction of house (e.g., a copy of the building plan)
-Submit the form to your employer.
-Your employer will forward the form to the EPFO.
The EPFO will process your request and will credit the amount to your bank account.
Maximum amount you can avail for construction of the house
The eligibility of the amount of money you will get is determined by considering the following three factors;
- For purchase of site: 24 month’s basic wages and DA and for purchase of house/flat/construction- 36 month’s basic wages and DA
- Total of employee and employer share with interest in EPF
- Total cost of construction
Out of the three, your eligibility will be the one which is lowest among the three conditions. Also, you can avail this facility only once.
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