EPF Withdrawal Rules 2025

The Employees’ Provident Fund (EPF) is a government-backed savings scheme designed to provide financial security to employees in India. Managed by the Employees’ Provident Fund Organisation (EPFO), it mandates contributions from both employees (12% of salary) and employers (12% split into EPF and EPS). The accumulated corpus, including interest, serves as a retirement fund. Understanding EPF withdrawal rules is crucial for maximizing benefits while complying with regulations.

  • New EPF Withdrawal Rules for 2025
  • What is the EPF
  • Types of EPF Withdrawals
  • Eligibility for EPF Withdrawal
  • EPF Withdrawal Process
  • Tax Implications of EPF Withdrawal
  • Importance of EPF Withdrawal Rules
  • Natural Calamities PF Withdrawal Limit

New EPF Withdrawal Rules for 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.

What is the Employees’ Provident Fund (EPF)?

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 The EPF earns an interest rate of 8.25% for FY 2024-25, compounded annually, and the accumulated corpus is typically withdrawn upon retirement.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.

Types of EPF Withdrawals

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 Withdrawal

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 Withdrawal Process

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.

Tax Implications of EPF Withdrawal

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.

Importance of EPF Withdrawal Rules

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.

Natural Calamities PF Withdrawal Limit

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.

FAQs

No, full withdrawals are not allowed during employment. Partial withdrawals are permitted for specific purposes like medical treatment, marriage, or home purchase, subject to eligibility.

After 1 month of unemployment, you can withdraw 75% of the EPF balance. After 2 months, you can withdraw the remaining 25% (100% total).

Withdrawals after 5 years of continuous service are tax-exempt. Before 5 years, TDS applies (10% with PAN, 30% without) if the amount exceeds ₹50,000.

Log in to the EPFO portal with your UAN, select ‘Claim’ under ‘Online Services,’ choose the withdrawal type, and submit with KYC details. Claims are settled in 3 days if Aadhaar-linked.

By mid-2025, EPFO plans to allow instant withdrawals up to ₹1 lakh via UPI apps and ATMs using Aadhaar and OTP.

No, if your UAN is linked with Aadhaar and KYC is complete, employer attestation is not required for online claims.

Yes, you can withdraw up to 6 times your monthly salary or the employee’s share with interest for medical treatment of self or family, with no service duration requirement.

As per the previous rule, 100% EPF withdrawal was allowed after 2 months of unemployment. However, under the new rule, EPFO permits withdrawal of 75% of the EPF corpus after unemployment of 1 month. The remaining 25% can be transferred to the new EPF account of the EPF member after gaining new employment. Up to 90% of the EPF corpus can be withdrawn after retirement (before 1 year of retirement, if the person is not less than 54 years old). However, early retirement is not considered until the member reaches 55 years of age.

PF members can withdraw PF amount up to 75% (depending on the situation) within the 5 years. However, withdrawing PF amount before 5 years of account opening will attract tax.

You can withdraw your EPF money online as well as offline:

  • Offline: By visiting the EPF office and submitting the required documents along with the relevant EPF withdrawal application form.
  • Online: By submitting the required documents along with the relevant EPF withdrawal application form on the UAN portal.

As per the new rule, EPFO permits withdrawal of 75% of the EPF corpus after 1 month of unemployment. Only in the case of resignation from service, a member has to wait for a period of 2 months for withdrawal of the PF amount.

Yes. As per the PF taxation rules, TDS is deducted on EPF withdrawal before completing 5 years of service at a rate of 10% on withdrawal if the PAN is furnished and 34.608% if the PAN is not furnished. However, if the amount of withdrawal is below Rs. 50,000, TDS is not deducted. TDS rule does not apply when termination of your service is not in your control due to reasons including company lockouts, retrenchments, employee layoffs, etc. Also, TDS is not applicable if the service cannot be continued because of some serious medical condition like physical disability, mental disability, etc.

EPFO permits withdrawal of 90% of the EPF corpus 1 year before retirement, if the person is not less than 54 years old. However, members can withdraw EPF amount before retirement as well. The withdrawal limit is situation and reason based.

Updated On May 12, 2025
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Written By Reshma RawatAssistant Content Manager of MyMoneyMantraCredit Cards, Credit Score, Personal Loan, Home Loan, etc.

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Assistant Content Manager of MyMoneyMantra
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