EPF Withdrawal Rules 2025

EPFO has introduced several updates in 2025 to enhance accessibility and efficiency:

• UPI and ATM Withdrawals: By May-June 2025, members can withdraw up to ₹1 lakh instantly via UPI apps (e.g., Paytm, Google Pay) or ATMs using Aadhaar and OTP. Withdrawals may be limited to 50% of the balance.
• Auto-Claim Processing: Claims under ₹1 lakh for medical emergencies are auto-approved if KYC is complete, reducing validation steps from 27 to 18.
• Faster Settlements: Claim processing time reduced to 3 days, with 95% of claims processed automatically.
• DigiLocker Integration: PF balance, claim status, and history accessible via DigiLocker.
• Relaxed KYC Requirements: Mandatory cheque leaf/passbook upload relaxed for eligible cases.
• Death Claims: Physical claims without Aadhaar seeding allowed as a temporary measure with Officer-in-Charge approval to prevent fraud.

These changes aim to make EPF withdrawals faster and more convenient, benefiting over 7 crore members.

The EPF is a mandatory retirement savings scheme under the Employees’ Provident Funds Act, 1952, for employees in organizations with 20 or more workers. Both employees and employers contribute 12% of the employee’s basic salary plus dearness allowance monthly. The EPF earns an interest rate of 8.25% for FY 2024-25, compounded annually, and the accumulated corpus is typically withdrawn upon retirement. However, partial or premature withdrawals are permitted under specific conditions, governed by strict EPFO rules.

EPF serves as a social security net, offering financial stability post-retirement or during emergencies. The scheme also includes the Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance (EDLI), providing additional benefits like pensions and insurance up to ₹7 lakh for nominees.

EPF withdrawals are categorized into **full withdrawals** (final settlement) and **partial withdrawals** (advances), each with specific rules and limits. Below are the main types of withdrawals allowed in 2025:

Full Withdrawal (Final Settlement)

• Retirement: Full EPF corpus can be withdrawn at age 58 or upon retirement. Up to 90% can be withdrawn at age 54, one year before retirement.
• Unemployment: - After 1 month of unemployment: Withdraw up to 75% of the EPF balance. - After 2 months of unemployment: Withdraw the remaining 25% (100% total).

Partial Withdrawal (Advances)

Partial withdrawals are allowed for specific purposes, with limits and service requirements:

• Medical Treatment: - Purpose: Treatment of self, spouse, children, or parents for serious illnesses (e.g., cancer, TB, heart ailments). - Limit: 6 times monthly basic salary + dearness allowance or employee’s share with interest, whichever is lower. - Service Requirement: None. - Frequency: Unlimited.
• Marriage: - Purpose: Marriage of self, child, or sibling. - Limit: 50% of employee’s contribution with interest. - Service Requirement: 7 years. - Frequency: Maximum 3 times.[]
• Education: - Purpose: Post-matriculation education of self or child. - Limit: 50% of employee’s contribution with interest. - Service Requirement: 7 years. - Frequency: Maximum 3 times.
• Home Purchase/Construction: - Purpose: Buying or constructing a house/land in the name of self, spouse, or jointly. - Limit: Up to 24 times monthly basic salary + dearness allowance. - Service Requirement: 5 years. - Frequency: Once.
• Home Loan Repayment: - Purpose: Repaying home loan EMIs. - Limit: 36 times monthly basic salary + dearness allowance or total employee/employer share with interest, whichever is lower. - Service Requirement: 10 years. - Frequency: Once.
• Home Repairs/Alterations: - Purpose: Repairs or improvements to a house owned by self, spouse, or jointly, at least 5 years old. - Limit: 12 times monthly basic salary + dearness allowance. - Service Requirement: 5 years from house completion. - Frequency: Twice (second withdrawal after 10 years from first).
• Specially-Abled Equipment: - Purpose: Purchase of equipment for specially-abled members. - Limit: 6 months’ basic salary + dearness allowance or employee’s share with interest, whichever is lower. - Service Requirement: None.
• Other Purposes: - Electricity cut: 1 month’s wages or ₹300, whichever is less. - Legal disputes (dismissal/retrenchment): 50% of employee’s share with interest.

Eligibility for EPF withdrawals depends on employment status, service duration, and purpose:

• Employment Status: No withdrawals (full or partial) are allowed while employed, except for specific purposes like medical emergencies or home purchase.
• Unemployment: Must declare unemployment for 1 month (75% withdrawal) or 2 months (100% withdrawal).
• Service Duration: Varies by purpose (e.g., 5 years for home purchase, 7 years for marriage/education, none for medical).
• KYC Compliance: Universal Account Number (UAN) must be active, with Aadhaar, PAN, and bank details linked and verified.
• Property Ownership: For home-related withdrawals, the property must be registered in the name of the employee, spouse, or jointly, and free from legal disputes.

Employees must ensure their EPF account is active and contributions are up-to-date to avoid claim rejections.

EPF withdrawals can be processed online via the EPFO portal or offline through regional EPFO offices. The online process is faster and preferred for Aadhaar-linked accounts.

Online Withdrawal Process

• Step 1: Visit the EPFO Member e-SEWA portal (epfindia.gov.in) and log in using your UAN, password, and CAPTCHA.
• Step 2: Verify KYC details under the ‘Manage’ tab (Aadhaar, PAN, bank account linked).
• Step 3: Go to ‘Online Services’ and select ‘Claim (Form-31, 19, 10C & 10D)’.
• Step 4: Choose the withdrawal type (e.g., advance, final settlement) and enter details like purpose, amount, and bank account.
• Step 5: Submit the claim and upload supporting documents (e.g., cheque leaf, medical certificate, if required).
• Step 6: Track claim status online. Claims are typically settled within 3 days if KYC is complete.

Offline Withdrawal Process

• Step 1: Download the Composite Claim Form (Aadhaar or Non-Aadhaar) from the EPFO website.
• Step 2: Fill the form with personal, employment, and bank details.
• Step 3: For Non-Aadhaar forms, get employer attestation or verification by a gazetted officer.
• Step 4: Submit the form at the regional EPFO office.
• Step 5: Funds are credited after verification, which may take longer than online claims.[]

Note: Aadhaar-linked claims don’t require employer attestation, simplifying the process. Ensure your mobile number is linked for OTP verification.

EPF withdrawals are subject to tax rules based on service duration and withdrawal amount:

• After 5 Years of Continuous Service: Full withdrawal is tax-exempt, including employee/employer contributions and interest.
• Before 5 Years of Service: - Employee’s Contribution: Taxable if Section 80C deductions were claimed. - Employer’s Contribution + Interest: Taxable under ‘Salary’ head. - Interest on Employee’s Contribution: Taxable as ‘Income from Other Sources’. - TDS: 10% if withdrawal exceeds ₹50,000 and PAN is provided; 30% without PAN. No TDS if the amount is below ₹50,000.
• Exemptions: No TDS if service termination is due to ill-health, employer closure, or other uncontrollable reasons. Form 15G/15H can avoid TDS if the total income is non-taxable.
• Unrecognized PF**: Withdrawals from unrecognized provident funds are fully taxable, regardless of service duration.

Transferring EPF to a new employer’s account instead of withdrawing avoids tax liabilities.

EPF rules ensure disciplined savings while offering flexibility during emergencies. Misunderstanding these rules can lead to tax penalties, reduced savings, or loss of pension benefits. This guide clarifies eligibility, processes, and recent updates to help you make informed decisions.

In India, the Employees’ Provident Fund Organisation (EPFO) allows partial withdrawal from an Employees’ Provident Fund (EPF) account to address financial needs arising from natural calamities such as floods, earthquakes, or riots, under specific conditions outlined in Paragraph 68L of the Employee’s Provident Fund Scheme, 1952.

The key details regarding the withdrawal limit and requirements are as follows:

• Withdrawal Limit: An EPFO member can withdraw a non-refundable advance of up to ₹5,000 or 50% of their own total contribution (including interest) standing to their credit in the EPF account on the date of authorization, whichever is lower. This amount is intended to meet unforeseen expenses due to property damage caused by a natural calamity.