The Employees’ Provident Fund Organization (EPFO) issued a circular on April 16, 2024, stating that the PF partial withdrawal limit for auto claim settlements concerning medical treatment has been increased from Rs 50,000 to Rs 1 lakh.

It is essential to understand that withdrawals from your Provident Fund (PF) are generally allowed for circumstances like:

medical emergencies,

marriage expenses,

educational requirements,

unemployment,

home improvements, and other legitimate reasons.

The labour ministry has been working to improve EPFO’s operations, introducing a new digital framework and updated guidelines to reduce the hassle for subscribers. One key change is that new employees can now withdraw funds without needing to wait six months, unlike the previous rules that restricted early access.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

These withdrawal claims can be raised online. Online claims are stipulated to be settled within 3 working days while offline claims can take up to 20 days for settlement.

Reasons	Eligibility	Withdrawal Limit
Housing Loan for construction or addition of house/purchase of site/flat	Minimum 60 months of service	Up to to 36 months of his/her basic along with DA/ the total of employee and employer shares with interest/ the total cost of the house
Marriage of self/son/daughter/brother/sister or for post matriculation education of children	Minimum 84 months of service	Up to 50% from the EPF account
One year before retirement	Should be above 54 years of age	Up to 90% of his/her EPF amount
Medical expenses/Natural Calamity/purchase of equipment by physically handicapped/closure of factory/cut in electricity in establishment	No minimum service tenure	Up to 6 months of his/her basic and DA/ the entire contribution

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New EPF Withdrawal Rules 2024

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 However, the money in an EPF account cannot be withdrawn on a whim.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 ten important rules about EPF withdrawal:

1. Money from the EPF account cannot be withdrawn during employment, unlike a bank account. EPF is a long-term retirement savings scheme. The money can be withdrawn only after retirement.
2. Partial withdrawal from EPF accounts is permitted in the case of an emergency such as medical emergency, house purchase or construction, and higher education. Partial withdrawal is subject to limits depending on the reason. The account holder can request online for partial withdrawal.
3. Although the EPF corpus can be withdrawn only after retirement, early retirement is not considered until the person reaches 55 years of age. EPFO allows withdrawal of 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old.
4. The EPF corpus can be withdrawn if a person faces unemployment before retirement due to lock-down or retrenchment.
5. The EPF subscriber has to declare unemployment in order to withdraw the EPF amount.
6. As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.
7. As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
8. EPF corpus withdrawal is exempted from tax but under certain conditions. Tax exemption on EPF corpus is permitted only if an employee contributes to the EPF account for 5 continuous years. The EPF amount is taxable if there is a break in the contribution to the account for 5 continuous years. In that case, the entire EPF amount will be considered as taxable income for that financial year.
9. Tax is deducted at source on premature withdrawal of the EPF corpus. However, if the entire amount is less than Rs.50,000, then TDS is not applicable. Keep in mind, if an employee provides PAN with the application, the applicable TDS rate is 10%. Otherwise, it is 30% plus tax. Form 15H/15G is a declaration form, which states that a person’s total income is not taxable and thus, TDS is avoidable.
10. An employee does not have to await approval from the employer for EPF withdrawal anymore. It can be done directly from the EPFO, provided the employee’s UAN and Aadhaar are linked, and the employer has approved it. EPF withdrawal status can be checked online.

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.

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

PF Withdrawal Rules

In order to ensure that employees continue to be enrolled in the scheme and avoid making withdrawals from their PF corpus and instead save it for the future or for retirement, EPFO has listed a number of PF withdrawal rules. They are as follows.

• All withdrawals made before the completion of 5 years of continuous service are subject to tax. Withdrawals after completion of 5 years of continuous service in the EPF are tax-free.
• In case the employee was terminated or is unemployed as a result of ill-health and so on, withdrawals will not attract tax.
• If the employee makes a withdrawal before the completion of 5 continuous years in the scheme, the principal amount as well as the interest accrued, is subject to tax. That said, the amount will be taxable in the current financial year.
• For withdrawals before the completion of 5 continuous years towards the scheme, the employee will be taxed 30% of the principal amount and the interest accrued if he/she has not submitted their PAN to the EPFO authorities. If the employee has submitted his/her PAN details to the EPFO authorities, 10% TDS (tax deducted at source) will be applicable.
• Funds transferred from one’s PF account towards the National Pension Scheme (NPS) will not attract tax when one makes a withdrawal.
• If the employee shifts jobs and in the process has a different PF account, it will be considered as continuous service to the scheme provided there has been no gap in contributions.
• Employees have to facilitate the use of the Composite Claims Form to make a partial withdrawal or a final settlement claim.
• If the employee has seeded his/her Aadhaar card details with their UAN, they can submit the Composite Claims Form to make a withdrawal directly to the EPFO without the requirement of the attestation of their employer. Those who have not seeded their Aadhaar card details with their UAN have to submit the Composite Claims Form with the attestation of their employer to make a withdrawal.

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

1. Medical Treatment
2. Marriage purposes
3. Construction of house or purchase of property
4. Repaying the existing home loan
5. Education purposes
6. 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

Other reasons for Withdrawing Money from EPF

• If the member has reached the age of retirement.
• If they have been unemployed for a duration of more than 60 days or two months.
• If they wish to move permanently abroad.
• If a female employee is resigning due to reasons such as pregnancy, childbirth, getting married, etc.

Limits of EPF Partial Withdrawal

Employees can make withdrawals based on the below-listed circumstances. Listed below are the withdrawal purpose, the minimum service requirement to be eligible to make the withdrawal, the PF withdrawal limit and the relations for whom the employee can make the withdrawal.

PF withdrawal reason	Minimum service	PF Withdrawal Limit	Relations
House Construction or purchase of plot	5 years	24 times the monthly salary for purchasing/36 times the monthly salary for purchase and construction, or the cost of the property or the total of employee and employer’s shares with the interest amount, whichever is less	The PF account holder and spouse or joint
Home Loan Repayment	3 years	90% of PF the balance	The PF account holder and spouse or joint
House renovation or alteration	5 years from the completion of the construction of a house	12 times the monthly salary	The PF account holder and spouse or joint
Marriage	7 years	50% of the employee’s contribution with interest	The PF account holder, siblings, and children
Medical treatment	Not required	Employee’s share with interest or 6 times the monthly salary, whichever is lower	The PF account holder, parents, spouse, or children

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

Rules Pertaining to EPF

Contributions from employees as well as employers add to the EPF. However, unlike what is commonly thought to be, the entire portion of contribution from an employer doesn’t go exclusively towards the EPF. The division of funds is mentioned as follows –

• 12% of the Salary of the Employee goes directly towards EPF

• 12% of the Salary of the Employer is divided as follows –
•  3.67% of contribution towards EPF
• 1.1% of contribution towards EPF Administration Charges
• 0.5% of contribution towards Employees’ Deposit Linked Insurance (EDLI)
• 0.01% of contribution towards EDLI Administration Charges
• 8.33% of contribution towards Employees’ Pension Scheme

When Can I Withdraw from the EPF Account

Complete Withdrawal

EPF can be withdrawn under these cases:

• When you retire
• When you are unemployed for over two months. In order to make the withdrawal you have to get an attestation from a gazetted office.

Partial Withdrawal

Partial withdrawal from the EPF account can be made under a few circumstances.

House Construction or purchase of plot	5 years	24 times the monthly salary for purchasing/36 times the monthly salary for purchase and construction, or the cost of the property or the total of employee and employer’s shares with the interest amount, whichever is less	The PF account holder and spouse or joint
Home Loan Repayment	3 years	90% of PF the balance	The PF account holder and spouse or joint
House renovation or alteration	5 years from the completion of the construction of a house	12 times the monthly salary	The PF account holder and spouse or joint
Marriage	7 years	50% of the employee’s contribution with interest	The PF account holder, siblings, and children
Medical treatment	Not required	Employee’s share with interest or 6 times the monthly salary, whichever is lower	The PF account holder, parents, spouse, or children