EPFO Announces Landmark Changes to PF Rules, Allows 100% Withdrawal. 7 crore employees received a major gift before Diwali, with the government making significant changes to PF rules.

◆ Employees will now be able to withdraw up to 100% of their EPF account balance if needed.

◆ Withdrawals will be easier in situations such as illness, education, marriage, or natural disasters.

◆ This decision was taken at a meeting chaired by Labor Minister Mansukh Mandaviya, which will benefit crores of account holders.

EPFO Announces Landmark Changes to PF Rules, Allows 100% Withdrawal
New Delhi: In a major move set to benefit over seven crore subscribers, the Employees’ Provident Fund Organisation (EPFO) has announced a significant simplification of its withdrawal rules. The decision, taken at a meeting of the Central Board of Trustees (CBT) chaired by Labour Minister Mansukh Mandaviya, is being hailed as a major “Diwali gift” for India’s salaried class.

The key highlight of the new provisions is the ability for members to withdraw up to 100% of their eligible provident fund balance, including both their own and the employer’s contributions. This is a considerable departure from previous rules which often had stricter limitations.
The reform streamlines 13 complex withdrawal provisions into a single, user-friendly framework with three main categories:

• Essential Needs: This includes withdrawals for situations like illness, education, and marriage.
• Housing Needs: Withdrawals for purposes such as purchasing a home or repayment of a home loan.
• Special Circumstances: This new category simplifies the process for unforeseen events like natural disasters or unemployment, allowing for withdrawals without the need to specify a reason.
  
• Under the revised rules, the minimum service requirement for all partial withdrawals has been uniformly reduced to just 12 months. This makes it easier for employees to access their funds in times of need. The withdrawal limits for education and marriage have also been liberalized, now allowing for up to 10 and 5 withdrawals, respectively, a significant increase from the previous combined cap of three.
• The decision is part of a broader digital transformation agenda, dubbed ‘EPFO 3.0’, which aims to make provident fund services more efficient, transparent, and user-friendly. The new rules, combined with a simplified online application process, are expected to reduce claim rejections and grievances, empowering members to take control of their savings when they need it most.

Employees’ Provident Fund (EPF) Withdrawal Process

This guide details the steps for withdrawing funds from your EPF account through the online method on the EPFO Unified Member Portal.

1. Prerequisites (Must be completed before applying)

Before initiating an online withdrawal claim, you must ensure the following details are updated and verified on the EPFO portal:

Requirement	Details
UAN Status	Your Universal Account Number (UAN) must be activated.
KYC Seeding	Your Aadhaar, PAN (Permanent Account Number), and Bank Account details (with IFSC) must be linked and verified with your UAN.
Mobile Number	Your mobile number must be active and linked to your Aadhaar to receive the necessary OTP (One-Time Password).
Date of Exit (DOE)	Your previous employer must have updated your Date of Exit (DOE) on the portal for Full Withdrawal claims.
Cancelled Cheque	A scanned copy of a cancelled cheque (with your name, account number, and IFSC code clearly visible) is often required, or for verification.

2. Types of Withdrawal Claims and Eligibility

The eligibility criteria depend on whether you want a full settlement or a partial advance:

Withdrawal Type	Purpose & Form Used	Key Eligibility Conditions
Full Withdrawal	Final Settlement (Form 19 & 10C). To claim your entire EPF balance and withdraw pension amount.	1. Retirement (after age 55). 2. Unemployment for 2 months or more (75% withdrawal is allowed after 1 month of unemployment, and the remaining 25% after 2 months).
Partial Withdrawal	EPF Advance (Form 31). To withdraw a specific portion of the fund.	Allowed for specific reasons such as: – Medical emergencies (No minimum service required). – Higher Education / Marriage (Minimum 7 years of service). – Purchase/Construction of House (Minimum 5 years of service).

Tax Note: If you withdraw your EPF balance before completing 5 years of continuous service, the amount may be taxable. You may submit Form 15G/15H (if eligible) to avoid TDS (Tax Deducted at Source).

3. Step-by-Step Online Withdrawal Process

Follow these steps on the EPFO Unified Member Portal (https://unifiedportal-mem.epfindia.gov.in/):

Step 1: Log in and Verify KYC

1. Go to the official EPFO Member e-Sewa portal and Log in using your UAN and Password.
2. Navigate to the ‘Manage’ tab and select ‘KYC’. Confirm that all key KYC documents (Aadhaar, PAN, Bank) show the status as ‘Verified.

Step 2: Initiate the Claim

1. Go to the ‘Online Services’ tab and click on ‘Claim (Form-31, 19, 10C & 10D)’.
2. On the new page, your details will be displayed. Enter the last four digits of your linked Bank Account Number for verification, and click ‘Verify’.
3. Click ‘Yes’ on the Certificate of Undertaking.

Step 3: Select Claim Type and Purpose

1. Click ‘Proceed for Online Claim’.
2. Under the ‘I want to Apply For’ drop-down menu, select the relevant form based on your requirement:
   • Only PF Withdrawal (Form 19): For final settlement of PF.
   • Only Pension Withdrawal (Form 10C): For pension fund withdrawal.
   • PF Advance (Form 31): For partial withdrawal (loan/advance).
3. If selecting Form 31, you must also select the ‘Purpose for which advance is required’ (e.g., Illness, Marriage) and enter the Amount Required and your Employee Address.

Step 4: Submit and Authenticate

1. Accept the certification/disclaimer.
2. Click on ‘Get Aadhaar OTP’.
3. Enter the OTP received on your Aadhaar-linked mobile number and click ‘Validate OTP and Submit Claim Form’.

Step 5: Acknowledge

You will receive an acknowledgement and the claim reference number via SMS. The amount is typically credited to your verified bank account within 7 to 21 working days after successful verification and processing by the EPFO.

4. Checking Claim Status

You can track the status of your submitted claim by logging into the portal and going to the ‘Online Services’ tab, then selecting ‘Track Claim Status’.