Employees’ Provident Fund Organisation (EPFO) is set to introduce several key changes to its guidelines and services for members, with many of these updates expected to roll out in 2025. These revisions aim to provide greater convenience for both private sector and government employees while helping them better manage their retirement savings.
Key Changes in EPFO Rules
1. Change in Contribution Limits
Currently, employees contribute 12% of their basic salary to their EPF accounts, but there is a limit of ₹15,000. In the future, employees may be able to contribute based on their actual salary, allowing them to save more for retirement and receive a higher pension.
2. ATM Withdrawals for PF Money
Soon, EPFO members will be able to withdraw their provident fund money using an ATM card. This new service, which will be available by 2025-26, will make it easy for members to access their PF money anytime and anywhere.
Sumita Dawra, Secretary of the Labour Ministry, said that this change will improve services for workers by making it easier to access their provident funds.
3. Upgrade to EPFO IT System
EPFO is working on upgrading its IT systems to make the process of withdrawing funds faster and more efficient. The system upgrade is expected to be finished by June 2025, helping members get their claims settled quickly and reducing fraud.
4. Option for Equity Investment
EPFO is thinking about allowing members to invest their money in stocks directly (instead of just Exchange-Traded Funds, or ETFs). This could help members grow their savings faster and diversify their investments.
5. Easier Pension Withdrawals
Under new rules, pensioners will be able to withdraw their pensions from any bank in the country without needing extra verification. This will save time and offer more convenience for pensioners.
EPF Withdrawal Rules 2025
The EPF account consists of contributions from the employer and employee. However, the money in an EPF account cannot be withdrawn on a whim.
Here are some of the important rules about EPF withdrawal:
- Money in the EPF account can be withdrawn only after retirement and not during employment unlike a bank account.
- Partial withdrawal can be applied online and is applicable under emergencies such as medical treatment, higher education, purchase of residential house or construction.
- EPFO allows withdrawal of 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old.
- In case of unemployment before retirement due to lock-down or retrenchment, EPF corpus can be withdrawn.
- EPFO allows withdrawal of 75% of the corpus after 1 month of unemployment and transfer of the remaining 25% to the new EPF account after new employment
- Tax exempted on EPF corpus withdrawal if an employee contributes to the EPF account for five continuous years.
- On premature withdrawal of the EPF corpus TDS will be deducted, but TDS will not be deducted if the entire amount is less than Rs.50,000.
- For premature withdrawal, TDS deduction will be 10% if PAN is submitted and it will be 30% plus tax if PAN not submitted.
- EPF status can be checked online, and it can be done directly through EPFO if the UAN and Aadhar is linked, and the employer has approved it.
- The EPF subscriber has to declare unemployment in order to withdraw the EPF amount.
- As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
Steps for EPF Withdrawal Online
Employees can make a PF withdrawal claim on the EPFO member portal by following the steps mentioned below. As already mentioned, if the employee has seeded his/her Aadhaar card details with one’s UAN account, they do not require the attestation of their employer to make a PF withdrawal.
Step 1: Visit the EPFO member portal.
Step 2: Choose the ‘For Employees’ option under the ‘Our Services’ tab.
Step 3: On the new webpage click on the ‘Member UAN/Online Service (OCS/OTCP)’ option under the ‘Services’ tab of the ‘For Employees’ page.
Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.
Step 5: Click on the ‘KYC’ option under the ‘Manage’ tab.
Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the ‘Digitally Approved KYC’ section and check your KYC details. Ensure the details are correct.
Step 7: Click on the ‘Online Service’ tab from the top menu to proceed with the withdrawal if all the KYC details are correct.
Step 8: Click on the ‘CLAIM (FORM-31, 19 & 10C)’ option from the drop-down menu.
Step 9: You will be redirected to a new webpage with an automatically generated ‘ONLINE CLAIM (FORM 31, 19 & 10C)’ form.
Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.
Step 11: After the verification of the bank account, a ‘Certificate of Undertaking’ will be generated. Click ‘Yes’ on the certificate pop-up to proceed.
Step 12: Click on the ‘Proceed for Online Claim’ option when prompted.
Step 13: For online fund withdrawal, select the ‘PF ADVANCE (FORM – 31)’ option from the drop-down menu provided next to the ‘I want to apply for’ option.
Step 14: A reason for a claim has to be selected from the drop-down options provided next to the ‘Purpose for which advance is required’ option. The fields provided for the address of the employee and the amount for an advance are also required to be filled in.
Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.
Step 16: You might be required to upload certain scanned documents (depending on the nature of the withdrawal).
Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.
Requirements for PF Withdrawal
To ensure the process of making a withdrawal is seamless, subscribers have to meet the requirements that are listed below, if they wish to carry out a withdrawal without the attestation of their employer.
- Subscribers have to ensure that their UAN is active, and their mobile number is seeded with their PF account.
- The PF member should also seed his/her Aadhaar card details with their PF account.
- The member’s bank account details and the bank’s IFSC code have to be integrated as well.
- For final settlements prior to the completion of 5 years in the EPF scheme, the member will be required to seed his/her PAN details.
- Check out for more about PF Withdrawal Guidelines
Steps to Enter Exit Date and Withdraw Your PF Easily
If the withdrawal of your Provident Fund (PF) is delayed, then it may happen due to the exit date not being mentioned. Hence, in order to avoid this, The Employees’ Provident Fund Organisation (EPFO) has come up with a facility in the Unified Portal where the employee can enter the date of exit from the previous employer by himself.
Previously, only the employer could enter the exit date, but now even employees can enter the date of exit.
You can change the exit date by logging in to the UAN portal using your Unified Account Number (UAN) and password. However, you must check whether the exit date is mentioned by clicking on ‘Service History‘ under ‘View‘ on the top panel.
Given below are the steps you will have to follow in order to enter the Exit Date:
Step 1: Log in to your UAN portal using your Unified Account Number and Password
Step 2: On the top panel, click on ‘Manage‘ and click on ‘Mark Exit‘ located under it
Step 3: From the drop-down option choose the employer
Step 4: You will be directed to a new page where you will have to enter your date of birth, date of joining, and date of exit. Mention the date of exit as the one mentioned in your resignation letter if your exit date is before the 15th day of the month
Tax-Free Limit for PF Withdrawals
You can get tax breaks when you withdraw money from your PF account. This, however, only applies if you withdraw after providing 5 years of continuous service. It is also decided by the tax bracket in which you fall. Tax deducted at source (TDS) or tax will be imposed on your money if you withdraw your PF balance before the end of the 5-year period.
However, no tax will be levied on EPF withdrawals before 5 years in certain cases depending on the situation.They are:
- When you need to withdraw funds for medical emergencies or health issues that cannot be avoided
- When your full PF amount is lower than Rs.50,000
- When you withdraw your PF balance with Form 15G or Form 15H (If you submit PAN, then there will be a TDS at 10%)
- When you transfer your PF balance from a PF account to another account
- When the employer’s business is withdrawn
Online Grievances Portal for PF Withdrawal
If you want to register any grievance regarding the services provided by the EPFO, you can visit the EPF grievance management system online. In this system, you can file a grievance, send a reminder, check the status of your complaint or grievance, upload your grievance document, or even change your password.
How to register a Grievance?
Step 1: You will have to go to the EPFO Grievance Management System and click on ‘Register Grievance.
Step 2: You will then see a grievance registration form. Here, you will have to fill all the required fields accurately.
Step 3: You will need to choose your status from the drop-down option.
Step 4: Next, you will have to key in your PF number, your establishment, the address of establishment, the name of the complainant, contact details, grievance details, etc. You can then enter the captcha code and click ‘Submit.
Types of EPFO Grievances
You can register a grievance when you face issues associated with:
- Return of cheque or misplacement of cheque
- Scheme certificate (10C)
- Transfer of your PF accumulations (F-13)
- Settlement of your pension (10-D)
- Provision of PF balance or PF slip
- Others
You can file a grievance online and then check its status on the portal itself. In case your complaint is not resolved within the stipulated period of time, you can send a reminder to them by clicking on ‘Send Reminder. Here, you will need to enter your grievance registration number and password (if you have any).
PF Withdrawal Claim Forms
The PF Withdrawal Claim Forms that must be submitted to withdraw the provident fund or pension fund differ according to the age of the employee, the cause for the claim, and whether or not the employee is still employed. Withdrawals were previously made using Form 19, Form 31, and Form 10C. However, the above-mentioned forms have lately been replaced by a composite claim form. The forms that required the employee’s UAN have been replaced by a composite claim form that requires the employee’s Aadhaar data.
As mentioned earlier, the PF claim form that needs to be submitted varies based on certain criteria.
Criteria for PF Withdrawal
1. When an employee is still under service
- If he/she wishes to take an advance from the PF account, the composite claim form (Aadhaar/Non-Aadhaar) has to be submitted.
- If he/she wishes to finance his/her LIC policy through the PF account, Form 14 has to be submitted.
- If he/she has crossed 58 years of age and wishes to claim the pension fund.
- Form 10D should be applied for a monthly pension if 10 years of eligible service has been completed.
- The composite claim form (Aadhaar/Non-Aadhaar) should be submitted if 10 years of eligible service has not been completed.
2. When an employee switches the job
- And wishes to transfer EPF account, Form 13 should be applied
- When an employee leaves an establishment and doesn’t join another
- He/she can make a PF and pension fund claim using the composite claim form (Aadhar/Non-Aadhar)
- Is above the age of 58 years, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhaar/Non-Aadhaar) and a pension claim using Form 10D
3. When an employee leaves an establishment due to a physical disability
- He/she can make a PF claim using a composite claim form (Aadhaar/Non-Aadhaar).
- He/she can make a pension claim using Form 10D.
- Is above the age of 58 years and has not completed 10 years of eligible service, he/she can make the PF and pension claim using the composite claim form (Aadhaar/Non-Aadhaar).
4. When an employee is deceased while in service
- Before the age of 58 years while still in service, the nominee/heir/beneficiary can apply for the PF settlement using Form 20, monthly pension using Form 10D, and EDLI (Employees’ Deposit Linked Insurance) amount using Form 5IF.
- After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF using Form 20, the pension using Form 10D, and the EDLI amount using Form 5IF.
- After the age of 58 years and had not completed 10 years of eligible service, the nominee/heir/beneficiary can make the PF settlement using Form 20, withdraw the pension using the composite claim form (Aadhaar/Non-Aadhaar), and claim the EDLI amount using Form 5IF.
5. When an employee is deceased
- Before the age of 58 years, the nominee/heir/beneficiary may claim the PF amount through Form 20, and the pension amount through Form 10D.
- After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF amount using Form 20, and the pension amount using Form 10D.
- After the age of 58 years and had not completed 10 years of eligible service at the age of 58 years, the nominee, heir or beneficiary can apply for a final PF settlement using Form 20 and for the pension fund using the composite claim form (Aadhaar/Non-Aadhaar).
Reasons for PF Withdrawal
The situations under which you can go ahead and withdraw money from your EPF while you are still working
- Medical Treatment
- Marriage purposes
- Construction of house or purchase of property
- Repaying the existing home loan
- Education purposes
- Alterations or repairs for your house
1. Medical Treatment
IYou can withdraw money from your EPF account to meet the financial requirements of a medical treatment, provided it meets the following conditions:
- Any major surgery in a particular hospital
- The hospitalisation period is more than a month
- The individual is suffering from Tuberculosis, Leprosy, Cancer, Mental Derangement, Paralysis, heart problems, etc. and is on leave that has been granted by the employer for the mentioned illness
You can actually withdraw the money in EPF at any given time during the period of your service. It is not needed that you to have completed a specific number of years in the organisation to claim that money. You can always draw the money for treatment purposes, even if you have completed one or two years in your present organisation.
You must also remember that the maximum amount that can be availed by you is your six months’ salary. This amount may not be very big, but it will offer you some help that you might need in a crisis situation. Not only can this advantage be taken anytime, but also, it can be enjoyed as many times as you want. Thus, your PF will save you for sure.
Certain documents must be provided by you along with Form 31
- Your employer must give a certificate stating the insurance scheme offered by him and the benefits that are not available for the member. If not, then the member must provide a certificate issued by Employees’ State Insurance Corporation that would state that fact that the member can no longer avail the cash benefits provided by the Employees’ Insurance Scheme
- The doctor must certify that hospitalisation for a period of one month is required in this case. Also, if there is a requirement for surgery, that must also be stated by the doctor in that certificate
2. Marriage Purposes
Money from your EPF can be withdrawn for an occasion like marriage in case you have already completed seven years of your service life. You can use up to 50 % of the amount that is there in your EPF account, and you can enjoy this advantage for a maximum of three times. So, let us consider that you have around INR 5 lacs in your EPF account. However, you must not calculate the entire amount when you wish to withdraw it for your marriage purposes. Just your own contribution towards EPF along with the interest accumulated on it is supposed to be calculated by you. Applicable cases are as follows.
- Your own wedding
- Wedding of your child
- Wedding of your sibling
3. Construction of house or purchase of property
You can withdraw some money from the EPF when you are planning to purchase a house or construct a house. However, you must understand a few rules first.
- The land or house that you wish to purchase must be on your name, your spouse’s name or jointly in both your names. Any other combination will not be allowed
- You must have completed a period of 5 years in your service
- The maximum amount that you can avail from your EPF account is 24 times your monthly salary
If the property that you intend to purchase is in question, then it should first become free from all related disputes. The property must be a registered one and proof of registration must also be provided.
4. Repaying the existing home loan
If you have taken a home loan and wish to prepay it, then you may withdraw some amount from your EPF. But to avail this benefit you must have completed ten years of your service. However, you can only avail this advantage once in your entire lifetime. Also, you can either use the EPF for purchasing a house or property or for repayment of your present home loan. You cannot avail money for both of them.
The property for which you are making the payment must be in your name, your spouse’s name or jointly held by both of you. Many people have joint home loans with their siblings or parents. In such cases, you will not be able to avail this particular benefit. An amount equivalent to 36 times your monthly salary can be availed from the EPF for the repayment of the existing home loan.
5. Education purposes
Some money from your EPF can be withdrawn for educational purposes. This advantage can be availed only for post matriculation educational expenditures. This means, if you admit your daughter or son to any university or college then you will be able to draw money from the EPF account. You must complete seven years of your service before you can avail this benefit.
6. Alteration or Repairs of your house
After several years of staying in a house, you might think that it needs some repairs. Some alterations can also be an option that will make things convenient for you. But this is a costly affair and could very well burn a hole in your pocket. You can avail some money from the EPF for this purpose. But first you need to know some rules.
- You can withdraw and enjoy a maximum of 12 times your monthly salary
- From the date of construction, the house that you wish to repair must be at least five years old
- You must have completed a period of ten years in your service life
- This particular facility can be availed only once in an entire lifetime
- The house that you wish you repair must be under your name, your spouse’s name or jointly under both of your names