EPF or PF Withdrawal Rules 2024

EPFO allows members to withdraw their EPF prematurely, but there are certain terms and conditions for the same. Know about EPF withdrawal guidelines, eligibility and limits for situations like medical emergency, home loan, retirement, marriage, etc.
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PF withdrawal rules
OPEN FD
4 mins
10 Jan 2025

A Provident Fund (PF) is a long-term savings scheme designed to secure your financial future. Both you and your employer contribute a portion of your salary to this fund. This corpus can be accessed after retirement or under specific circumstances.

In India, the Employees' Provident Fund Organization (EPFO) is the governing body responsible for administering PF accounts for employees in the organized sector.

This article functions as an essential guide, examining the most recent updates in EPF withdrawal rules for 2025. From the intricacies of eligibility criteria to procedural details, we delve into the aspects shaping provident fund withdrawals in the present year.

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Withdrawal of Provident Fund

While Provident Fund (PF) is primarily meant for post-retirement needs, certain circumstances allow for early withdrawals. Here are the main types of PF withdrawals:

  • Final Settlement: This is the full withdrawal of your PF account balance, typically upon retirement or job loss.
  • Partial Withdrawal: You can withdraw a portion of your PF balance under specific conditions, such as buying a house, higher education, or medical emergencies.
  • Pension Withdrawal Benefit: This is applicable to those who have opted for a pension scheme and can be withdrawn under certain circumstances.

Note: Premature withdrawals, except in cases of unemployment, are subject to specific conditions and tax implications.

EPF Withdrawal Rules 2025

Here are some key rules to remember regarding Provident Fund withdrawals:

  • Employment Status: You cannot withdraw PF funds, either partially or fully, while you are still employed.
  • Unemployment: If you've been unemployed for at least one month, you can withdraw up to 75% of your PF balance. After two months of unemployment, you can withdraw the entire balance.
  • Tax Deduction: Tax Deducted at Source (TDS) cannot be avoided by submitting Form 15H or 15G.
  • Premature Withdrawal: If you withdraw more than Rs 50,000 within five years of opening your EPF account, TDS of 10% (with a PAN card) or 30% (without a PAN card) will be levied.
  • PF Loans: You can only avail a loan against your PF savings after a certain number of years of continuous service.
  • Job Changes: When switching jobs, you don't need to transfer your old PF balance to your new account. The transfer can be initiated if your Universal Account Number (UAN) is active and the necessary forms are submitted.
  • Full Withdrawal: You can withdraw your entire PF balance if you've been unemployed for two months or more, or if your new job starts more than two months after your last working day at the previous company.

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Probable Reasons for PF Withdrawal

Potential reasons for withdrawing PF are:

For Medical Purposes:

If employees have medical expenses, they can withdraw either their PF contribution with interest or up to six times their monthly salary, whichever is less. This option is for medical treatments for themselves, their spouse, children, and parents. Importantly, there is no waiting period or minimum work duration required, ensuring quick financial help during tough health situations.

For Repaying Home Loan:

Members with outstanding home loans can withdraw up to 90% of their provident fund corpus if the house is registered in their name or held jointly. However, a minimum of 3 years of complete service is a prerequisite for this withdrawal, ensuring a balance between service tenure and financial assistance for home loan repayment.

For Wedding:

Eligibility for wedding-related withdrawals requires a minimum of 7 years of service. Contributors can withdraw 50% of their contribution with interest for their own, siblings', or child's marriage, providing financial aid for significant life events.

For Renovating and Reconstructing a House:

Employees planning renovations or reconstruction can withdraw funds from their EPF account, provided the house is held in their name or jointly with their spouse. A minimum of 5 years of total service is required, and members can withdraw up to 12 times their monthly salary from the provident fund account.

For Purchasing or Constructing a New House:

Members aiming to purchase or construct a new house can withdraw a partial amount from their EPF, subject to the property being registered in their name or jointly with their spouse. This option is available after completing a minimum of 5 years of total service, with withdrawal limits defined by salary multiples or the cost of the property. Importantly, this withdrawal can only be made once during the entire service tenure.

For Retirement:

Upon reaching 58 years of age, individuals can withdraw their entire provident fund corpus, with the flexibility to withdraw up to 90% of the balance, offering financial security in the retirement phase.

For Unemployment:

In the face of unemployment, individuals can withdraw 75% of their provident fund after one month of unemployment. For unemployment exceeding two months, the remaining 25% of the corpus can also be withdrawn, providing a financial cushion during extended periods of joblessness.

For education:

Individuals with PF accounts can withdraw 50% of their total employee contribution to EPF. This can be utilised for higher education expenses or to cover the educational costs of their children after completing class 10.

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Documents Needed for PF Withdrawal

Here are the documents required to withdraw your PF funds:

  • The UAN (Universal Account Number) is mandatory and can be obtained from the employer.
  • Ensure your bank details match the EPF account's registered name.
  • The bank account linked to the provident fund must be in the account holder's name.
  • Personal details like father’s name and date of birth must match the identity proof.
  • Employers handle submitting necessary details to EPFO and recording employee exits.
  • Clearly state joining and leaving dates for accurate processing.

How to apply for EPF Withdrawal

There are 2 methods to apply for EPF withdrawal:

Physical Application:

When opting for a physical application for EPF withdrawal, individuals are required to download the new Composite Claim Form, either (Aadhaar) or (non-Aadhaar), specifically designed for this purpose. The choice between the two forms depends on the linkage of Aadhaar and bank details on the UAN portal and the activation status of the Universal Account Number (UAN). If Aadhaar and bank details are successfully linked and the UAN is activated, applicants can utilize the Composite Claim Form (Aadhaar). Submission of this form can be made directly to the respective jurisdictional EPFO office without the need for employer attestation. Alternatively, if Aadhaar and bank details are not linked on the UAN portal, applicants should use the (non-Aadhaar) Composite Claim Form, complete the necessary information, and submit the form with employer attestation to the respective jurisdictional EPFO office.

Online Application:

The EPFO provides a convenient online withdrawal option to simplify and expedite the EPF withdrawal process. To initiate an online withdrawal through the EPF portal, certain prerequisites must be met. This includes the activation of the Universal Account Number (UAN) and ensuring that the mobile number used for UAN activation remains operational. Additionally, successful linkage of the UAN with various KYC details, such as Aadhaar, PAN, bank information, and the IFSC code, is crucial for a seamless online withdrawal experience. Meeting these conditions enables individuals to leverage the efficiency and ease of the EPFO's online withdrawal facility.

Taxation on EPF Withdrawal

The taxation on EPF withdrawal is subject to various rules and conditions. If an individual withdraws their EPF balance before completing five years of service, Tax Deducted at Source (TDS) is applicable. The TDS rate stands at 10% if the Permanent Account Number (PAN) is furnished at the time of withdrawal. In cases where PAN information is not provided, the TDS rate increases to 34.608%. However, it is important to note that if the withdrawal amount is less than Rs. 50,000, no TDS is deducted.

There are specific scenarios exempt from TDS

  1. TDS is not applied if the termination of service is beyond the individual's control. Events such as company lockouts, retrenchments, or employee layoffs fall under this category.
  2. TDS is not applicable when the service termination is a result of a serious medical condition, including physical or mental disabilities, making it impossible for the individual to continue employment. In such cases, the EPF withdrawal remains untaxed, providing relief in challenging circumstances.

Additional read: EPF Balance Check Online

Grievance Portal of PF Withdrawal

For those dissatisfied with EPFO services, they can file their complaint online in EPF grievance portal. Register complaints, send reminders, track complaint status, upload necessary documents, and modify your password through this user-friendly system.

Also read below articles related to EPF or PF:

Frequently asked questions

Is there a Grievance Portal for PF Withdrawal?

Yes, EPFO provides a Grievance Portal for PF withdrawal-related issues. Individuals can address concerns and track the resolution status online.

Is there any limit for PF withdrawal?

The withdrawal limit depends on factors like employment duration and purpose. Typically, individuals can withdraw the full amount after retirement or remain unemployed for a certain period.

Are PF contributions eligible for tax deductions?

Yes, PF contributions under Section 80C are eligible for tax deductions, up to a specified limit, providing a tax benefit for contributors.

Do we need to ask our employer before withdrawing PF?

While it is not mandatory, informing the employer about the withdrawal is advisable for coordination and seamless processing of the PF withdrawal request.

How to print a PF passbook?

EPFO members can print their PF passbook by logging into the EPF member portal using their UAN credentials and selecting the "Download Passbook" option.

Which is better, PPF or EPF?

The choice depends on individual preferences. EPF is an employer-employee contribution, while PPF is a voluntary individual contribution. Both have unique advantages and suit different financial goals.

What is the current EPF interest rate?

The EPF interest rate varies and is declared by the EPFO annually. The current EPF Interest Rates of financial year 2023-24 is 8.25%.

How many days required PF withdrawal?

It typically takes about 20 days to process the EPF claim. Once settled, employees can expect to receive the PF amount in their bank accounts.

Can I withdraw 90% of my PF?

EPFO allows members 54 years or older to withdraw up to 90% of their EPF balance one year before retirement.

Can I withdraw my PF after 5 years without leaving the company?

Yes, partial withdrawals from your EPF account are allowed for specific reasons like home loan repayment, medical expenses, or education after five years of continuous service without leaving the company.

How much PF can be withdrawn after resignation?

After resignation, you can withdraw the entire employee and employer contribution to the EPF, along with the interest accumulated, subject to certain conditions and tax implications.

How long can I keep my PF account after leaving my job?

You can keep your EPF account indefinitely after leaving a job, but it becomes inactive after three years of non-contribution. It will continue to earn interest for three years post-inactivity.

Can I withdraw my PF amount while working?

Yes, partial withdrawal of Provident Fund (PF) is allowed while working, but only under specific conditions such as medical emergencies, education, marriage, or home loan repayment, subject to eligibility criteria.

Can a Provident Fund be withdrawn anytime?

No, PF cannot be withdrawn anytime. Withdrawals are permitted under specific circumstances like retirement, unemployment, or fulfilling partial withdrawal criteria such as medical needs or housing-related expenses.

What is the maximum amount of PF advance withdrawal?

The maximum amount depends on the reason for withdrawal. For example, in case of medical emergencies, you can withdraw up to your contribution plus interest, while for marriage or education, up to 50% of the employee's contribution can be withdrawn.

What is power cut in PF Advance?

A "power cut" in PF Advance refers to the inability to withdraw funds due to technical or administrative reasons, often resolved by contacting the EPFO or checking compliance with withdrawal conditions.

Can I go to PF office to withdraw money?

Yes, you can visit the nearest EPFO office to withdraw your PF manually. However, online withdrawals via the EPFO portal are faster and more convenient, provided your KYC details are updated.

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