EPF Money After Resignation - 2025

Eligibility for PF Withdrawal

The eligibility criteria for PF withdrawal are mentioned below -

1. One month's worth of notice must be given, or you must pay the employer an equal sum.
2. Your personal information on the EPFO site has to be changed.

1. You need to have worked continuously for your current job for two months.

How to Withdraw PF After Resignation

The procedure to withdraw PF after resignation are mentioned below -

1. Sending Form 19 (PF Settlement Form) to your present employer is the initial step in the withdrawal process for your PF balance. This form is easily accessible through the EPFO website or the nearby EPFO office. You must sign the form before submitting it to your present employer. Also required are a copy of your bank account passbook or a cancelled check.

1. To avoid paying tax on the interest in the event that you move jobs, you can transfer your PF account from your old company to the new one. You can accomplish this by just giving your present employer a Form 13. Your present employer will check all pertinent information after you complete the form before approving your withdrawal request. Depending on when the application is submitted, the full process could take 20 days.
2. Your accumulated PF amount will be automatically credited to your bank account 30 days after your withdrawal request has been approved.

How to Withdraw PF After Resignation Online

To withdraw your PF after resignation through online method, follow the steps mentioned below -

Step 1: To sign in, go to the official EPFO website and enter your UAN and password.

Step 2: The 'Online Services' tab should be selected. Select the 'Claim' option from the drop-down menu.

Step 3: After being redirected, enter the number for your bank account and select "Verify."

Step 4: To proceed, pick "Proceed with Online Claim" and click the "Yes" button.

Step 5: Choose the withdrawal claim type you wish to apply for under the "I want to Apply for" tab.

Step 6: The 'PF Advance' form should be chosen. After providing a justification for the EPF withdrawal, submit your application. Your submission of documents for verification may be requested.

Step 7: The PF amount will be credited to your bank account after approval.

Is PF Withdrawal Taxable?

The tax treatment of Employee Provident Fund (EPF) withdrawal post-resignation is a pivotal aspect that necessitates a detailed exploration. This involves the consideration of both the principal contribution and the accrued interest. The EPF operates as a retirement benefit scheme, where both the employee and employer contribute 12% of the salary to the fund. The withdrawal amount encompasses the principal contributions made over the years and the interest accrued on these contributions.

Taxability Based on Withdrawal Timing

The tax consequences of PF withdrawal hinge on the timing of the withdrawal, with distinct rules for withdrawals occurring before and after five years of continuous service.

1. Before Completion of Five Years of Continuous Service: If the PF amount is withdrawn before completing five years of continuous service, both the principal amount and the accrued interest become subject to taxation.
2. After Completion of Five Years of Continuous Service: In the event of withdrawing the PF amount after completing five years of continuous service, the entire amount, encompassing both the principal and the interest earned, becomes exempt from taxation.

Exceptions to Taxation

Certain scenarios exist wherein PF withdrawal remains non-taxable, even if it transpires before completing five years of continuous service. The non-taxable status applies when the primary reasons for discontinuation of service align with specific categories:

1. Discontinuation of Employer’s Business: Withdrawal due to the discontinuation of the employer's business results in a non-taxable PF amount.
2. Medical Emergency (Illness or Disability): Withdrawals stemming from a medical emergency, such as illness or disability, are exempt from taxation.

PF money after Resignation

Complete Provident Fund (PF) money can be withdrawn when an individual retires from employment and remains unemployed for more than 2 months. The gazetted officer must certify that the individual is unemployed for more than 2 months for him/her to receive the PF money. In case an employee tries to withdraw the money without remaining unemployed for more than 2 months, it is against the law and hence, it is considered to be illegal.

As per the EPF Act, individuals must retire once they reach 58 years of age to claim the final settlement of PF. Individuals will receive their contribution and the employer's contribution made towards EPF along with the interest that has been generated. Depending on the number of years of service, the employee is also eligible to get the pension amount that has been made towards the Employees' Pension Scheme (EPS).

In case the employee is leaving India and settling permanently abroad, complete PF withdrawal is allowed. Withdrawal is also allowed if the employee gets a job abroad.

Members of the Employees Provident Fund Organisation (EPFO) can also withdraw the entire amount in case of total or permanent disability to work due to mental or bodily injuries. However, a medical practitioner must give a certificate regarding the same. If individuals have been suffering from leprosy or tuberculosis and have still not received their PF money, they are eligible to receive the entire PF amount.

It is important to note that there is a 2-month waiting period, following which you can opt for withdrawal of your PF money after resignation. The two-month waiting period is aimed at saving your retirement corpus. However, if you are in need of money and not joining a job in India, you may withdraw your PF account balance after resignation. You would do well to take note of the following points

1. If you plan to go abroad and do not wish to return any time soon, you can apply for the immediate withdrawal of your PF balance
2. If you are employed in a foreign country, you can apply for withdrawal of your provident fund account after resignation

You have to submit the necessary proof such as copies of your visa and appointment letter to avail of the aforementioned concession. Secondly, a female employee can choose to withdraw money if she intends to resign to get married. Intriguingly, not many are aware of this factor. However, this waiver finds clear mention in section 69 para-2 of the EPF scheme document. The girl, must however, submit a proof of her marriage such as a wedding card. Women who wish to leave a city or country after getting married can avail of this provision.

You have a zillion things on your mind after you put in your papers. Your provident fund account, more often than not, may not be your number one priority. All the same, you cannot keep putting off withdrawing your money in the account.