PF Withdrawal Rules 2022

The Employees’ Provident Fund Organization (EPFO) has revised several of its rules regarding withdrawal from the Provident Fund (PF) account in 2021. The aim of these revisions is to provide easier access to their PF funds to subscribers who are facing financial difficulties due to the coronavirus pandemic. According to the new rules, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their PF or EPF account, whichever is lower. This will be taken as a non-refundable deposit. 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

For more information, Check out related articles UAN Activation, UAN Login, EPF Claim Status & PF Passbook

New EPF Withdrawal Rules 2022

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 However, the money in an EPF account cannot be withdrawn on a whim.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 10 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 Money from the EPF account cannot be withdrawn during employment, unlike a bank account.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 The money can be withdrawn only after retirement.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 Although the EPF corpus can be withdrawn only after retirement, early retirement is not considered until the person reaches 55 years of age.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.
  • Visit EPFO Portal
  • Step 2: Choose the “For Employees” option under the “Our Services” tab.
  • Select For Employees
  • 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.
  • Select Member UAN
  • Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.
  • UAN Login
  • Step 5: Click on the “KYC” option under the “Manage” tab.
  • Select KYC Option
  • 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.
  • Check your KYC Details
  • 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.
  • Click on Claim Form
  • 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.
  • Enter Bank Account Number
  • 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.
  • Certificate of Undertaking
  • 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.
  • PF Advance Form 31
  • Step 14: A reason for 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 advance is also required to be filled up.
  • 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 (depends on the nature of 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 getting 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

When you make PF withdrawals, you can enjoy tax exemptions. However, this is applicable only when you make a withdrawal after offering 5 years of continuous service. It is also determined by the tax slab that is applicable to you. If you withdraw your PF balance before the completion of 5 years, then tax deducted at source (TDS) or tax will be applied on your funds.

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 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, address of establishment, name of 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).

Types of PF Withdrawals

Subscribers can make three different types of PF withdrawals on the EPFO member portal. They are:

  • PF final settlement
  • PF partial withdrawal
  • Pension withdrawal benefit

Subscribers can make the above-listed withdrawals on the EPFO member portal with the attestation of their employer if they have seeded their Aadhaar card details with their UAN.

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 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 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.

PF Withdrawal Procedure

With the amendments made by the Employees’ Provident Fund Organization (EPFO), subscribers to the scheme do not require the attestation of their employer to make a partial or complete withdrawal. All that the subscriber has to ensure is that his/her UAN is seeded with their Aadhaar card details. The EPFO has also rolled out the Composite Claims Form, which can be used to request a partial or complete withdrawal. Subscribers can carry out the whole process of making a withdrawal online either on the EPFO member portal or on the UAN portal.

PF Withdrawal Claim Forms

The PF Withdrawal Claim Forms that need to be submitted to withdraw the provident fund or pension fund vary based on the age, reason for making the claim, and whether or not the employee is still in service. Earlier, Form 19, Form 31, and Form 10C were used to make withdrawals. But recently, a composite claim form has replaced the above-mentioned forms. The forms that required the UAN details of the employee have now been replaced with a composite claim form that requires the Aadhaar details of the employee.

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 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 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 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 still 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 this, 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 the 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 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 balance The PF account holder and spouse or joint
House renovation or alteration 5 years from completion of 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 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 –

  1. 12% of Salary of Employee goes directly towards EPF
  2. 12% of Salary of 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

As per the latest changes made to the EPF rules, the following should be borne in mind –

  • Death Insurance Benefits– Under the Employees’ Deposit Linked Insurance Scheme (EDLI) the minimum death insurance benefit given to the beneficiaries has been increased to Rs.7 lakh if the subscriber dies during employment.
  • Employer Contribution towards EPS – The employer contribution towards EPS is 8.33% of the employees’ salary which consists of the basic salary, admissible cash value of food concessions, retaining allowance, and dearness allowance.
  • Changes to pension amount – The minimum monthly pension amount has been now set at Rs.1,000 for the widow of a member of the Employees’ Provident Fund. For children and orphans, it has been set at Rs.250 and Rs.750 per month respectively. The pension amount henceforth will be calculated as per the average salary of the last 60 months, instead of 12 months.
  • Insurance Coverage – The initial coverage amount under EPS had been Rs.1.56 lakh. As per the recent changes, this amount has now been increased to Rs.3 lakh per member.
  • Employer Contribution towards EPS – Due to the change in the minimum salary amounts, employer contribution has increased to Rs.1,250 per month towards EPS irrespective of if the salary is below or above Rs.15,000 per month.
  • Change in threshold limit – Instead of 20 employees per organization as the minimum group size, 10 employees in an organization will be considered eligible for EPF contribution.
  • Withdrawals – Withdrawals can be made from an EPF account through claim forms for financing an insurance policy, buying or building a house and a few other acceptable situations as per the EPFO.

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.

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 balance The PF account holder and spouse or joint
House renovation or alteration 5 years from completion of 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

Procedure for EPF withdrawal

Offline:

    Step 1: First, download the Composite Claim Form (Aadhaar)/Composite Claim Form (Non-Aadhaar)

    Step 2: Now, use the Composite Claim Form (Aadhaar) if you have entered your bank account details and Aadhaar number on the UAN portal

    Step 3: Fill in and then submit the form to the jurisdictional EPFO office without the signature of the employer.

    Step 4: You can then use the Composite Claim Form (Non-Aadhaar) if the Aadhaar number has not been entered on the UAN portal.

    Step 5: Now, fill in and then submit the form with the employer’s attestation to the EPFO office.

Online:

Step 1: Go to the UAN portal.

Step 2: Log into the portal with the UAN and password and enter the captcha.

Step 3: Select ‘Manage’ tab and click on ‘KYC’ to see if the KYC details like Aadhaar, PAN, and the bank details have been verified or not.

Step 4: After the KYC have been verified, visit the ‘Online Services’ tab and then choose the ‘Claim (Form-31, 19 & 10C)’.

Step 5: You will then see member details, and KYC details and here, enter your bank account number and select ‘Verify’.

Step 6: Choose ‘Yes’ to sign the certificate

Step 7: Select ‘Proceed for Online Claim’.

Step 8: In the claim form, choose the claim you require- full EPF settlement, EPF part withdrawal (loan/advance) or pension withdrawal.

Step 9: Choose ‘PF Advance (Form 31)’

Step 10: Click on the certificate and submit the application.

Withdrawal after Retirement

  • According to the EPF Act, when you retire at the age of 58 years, you have to apply for the claim of the final settlement
  • The PF balance has the employee’s and the employer’s contribution
  • You become eligible for the EPS amount if you have served for over 10 years in continuation
  • If you have not completed 10 years of service at the time of retirement, you can withdraw the complete EPS amount with the EPF
  • If you complete 10 years of service, you get pension benefits after retirement
  • The withdrawal of the corpus in the EPF account after retirement is tax-free
  • The interest that is earned on the EPF corpus after the retirement will be taxable
  • If you have registered at the EPF member portal, you can fill the form and claim his funds online
  • If you have not withdrawn funds for three years, you have to pay tax on the interest earned

Process to Withdraw Employees’ Provident Fund (EPF)

Provident Fund Withdrawal via New Form

    Step 1: Update your Aadhaar number via the UAN portal

    Step 2: Get your Aadhaar authenticated and link it to your UAN

    Step 3: Fill in the withdrawal form at the EPF member portal

    Step 4: Submit the form and you will receive the withdrawn amount

Provident Fund Withdrawal via Old Form

    Step 1: You have to first contact the HR team of the previous employer to get the Form 19 for EPF withdrawal.

    Step 2: The form can be downloaded from the EPFO’s website

    Step 3: Fill in details like employment details, PF account number, IFSC code, and bank account details.

    Step 4: You will have to submit the canceled cheque leaf

    Step 5: Submit the form to your employer

    Step:6: The employer will attest the form

Documents Required for PF Withdrawal

The following documents are required for PF withdrawal:

  • Universal Account Number (UAN).
  • Bank account information must be provided correctly.
  • The bank account must be in the PF holder’s name because money is not transferred to a third party until the PF holder’s demise.
  • An employer must submit the details of the employee to the EPFO and also register the employee’s exit from the company. The joining date and leaving date must be stated correctly.
  • The employee’s personal information like date of birth and father’s name should be the same as on the proof of identity.

FAQs on PF Withdrawal Rules

  1. What are the limits on advance PF withdrawal done online?
  2. EPF members can make advance withdrawals from their PF accounts for certain specific reasons. The list below gives the reason for which one may make an advance withdrawal online, and also the number of times one may do so online:

    • When making a PF withdrawal to fund a marriage, it can be done only 3 times.
    • The same limit applies when one withdraws their PF in advance to pursue their post-matriculation education.
    • One can only make a one-time PF advance claim when they wish to use the amount to purchase a plot or house or wish to construct a house.
    • If the PF is being withdrawn in advance before retirement, to fund any medical emergency or for treatment of a critical illness, there is no absolute limit on the number of withdrawals.
  3. Do individuals have to provide the Form 15G/H when submitting their EPF withdrawal form?
  4. Only when it is withdrawn after an employment tenure of 5 years, EPF will be exempt from tax. That is not the case if the withdrawal is made before one completes a service period of 5 years. In the latter case, the amount being withdrawn will be taxed. The purpose that the Form 15G/H serves is that it saves one from having TDS deducted from their EPF withdrawal amount.

  5. Can one claim their EPF without having to log on to the EPFO Portal?
  6. Yes, one can claim their EPF amount without having to go through the EPFO Portal. To do so offline, one will be required to get a Composite Claim Form, fill it in completely and submit the same.

  7. Is it compulsory to submit your PAN details at the time of EPF withdrawal?
  8. It is absolutely essential for individuals looking to make a partial withdrawal from their EPF account to provide their PAN details. Failure to do so may attract TDS at the rate of 30% or more. However, if PAN is provided, the rate of TDS applicable shall be 10%.

  9. Why can't I withdraw my EPF balance while working?
  10. The primary reason is that EPFO is a long-term investment programme. It helps members in building a retirement corpus. Hence, it does not allow anybody to withdraw their EPF balance while they are working with an organisation or establishment.

  11. Can I make partial withdrawals of PF for emergency purposes?
  12. Yes, you can withdraw your PF in parts for emergency situations, which can be medical requirements, house construction, educational needs, etc. The limit for partial withdrawal will depend on your reason. To be eligible for a partial withdrawal, you will need to meet a particular minimum service limit.

  13. What is the latest update regarding PF withdrawal when an individual loses his or her job?
  14. As per the latest EPFO regulations, individuals who are terminated from their job will be allowed to make a withdrawal of 75% of their accumulated corpus. This can be done 1 month after they are terminated. Earlier, one was not permitted to make a withdrawal post 1 month. If the individual remains unemployed for a tenure of 2 months, then he or she will be allowed to withdraw the other 25% and settle the PF amount completely.

  15. Can I withdraw my full PF amount before I retire?
  16. You can withdraw your entire PF corpus only after you retire. You will be allowed to retire only after you are 55 years old. If you retire before you attain this age, you will not be permitted to receive your entire corpus. However, you are entitled to obtain 90% of your EPF corpus 1 year before you retire. You need to note that your age cannot be lower than 54.

  17. Is there any tax exemption on EPF withdrawals?
  18. If you have provided 5 years of continuous service with an establishment and with your PF account, then you can enjoy a tax exemption on your EPF withdrawal. However, if you withdraw before you give 5 years of uninterrupted service, you will then be required to pay taxes on the withdrawn amount.

  19. Do I need my employer’s sanction to withdraw my EPF amount?
  20. No, you do not need to get consent from your employer in order to withdraw your EPF amount. You can go ahead with the withdrawal process directly from the EPFO. However, your Aadhaar and UAN need to be linked, and should be authorised by your employer compulsorily. Once the Aadhaar and UAN have been authenticated accurately, the EPFO member will receive the funds directly from the EPFO.

  21. I want to withdraw my EPF accrued from my previous company, but my current organisation’s PF number is also linked to the same UAN as the previous one. Is there a way to do so online?
  22. If you are employed currently and your current organisation has opened a new PF account for you that is linked to your previous organisation’s UAN, you won’t be eligible to withdraw your PF balance accrued with your previous employer. In this case, it is recommended that you transfer your previous employer’s EPF balance to the new account. This can be done easily with the help of the EPF Member e-Sewa Portal. Log in to the portal, go to the tab labelled ‘Online Services’ and click. Next you will see a drop-down menu from which you must locate and click on the option labelled “One Member-One EPF Account (Transfer Request)”. Please also note that if remain unemployed for a period of over two months, you will be eligible to claim your entire EPF balance after filling up and submitting Form 19.

News about PF Withdrawal Rules

  • New Provident Fund Rule for EPF account holders from 1 September

    From 1 September 2021, it will be mandatory for account holders of the Employees’ Provident Fund (EPF) to link their Aadhaar number with their Provident Fund (PF) account. The deadline for this is 31 August 2021. If this has not been completed before the due date, the contribution of the recruiter into the account will be discontinued. If Aadhaar verification of the Universal Account Number (UAN) has not been done, there will be no filing done of its Electronic Challan cum Return. Employees can continue to accumulate their PF contribution but cannot get the employer's contribution. Employers have been directed to complete the Aadhaar verification of the UAN of all the EPF account holders. The linking can be done directly through the employee's EPF account which is on the unified member portal.

    2 September 2021

  • New rule on Provident Fund account from 1 June

    A big decision regarding the Provident Fund has been taken by the EPFO. A new rule will be implemented on the PF account from 1 June 2021 where it is the responsibility of the employer to verify the details of your Aadhaar.

    In the event of failure to verify the details of Aadhaar can lead to the stoppage of employer contribution credited to your account. Therefore, it is your responsibility to link your PF account with Aadhaar in time. Your UAN should also be linked with Aadhaar.

    31 May 2021

  • New PF tax rules from 1 April – how will it impact you

    The Finance Minister Nirmala Sitharaman has recently announced the budget for 2021 in the first week of February. In this budget, the FM has announced that the interest on the employee contributions to the provident fund which exceeds the mark of Rs.2.5 lakh per annum will be taxed.

    Being put into effect from 1 April 2021, the annual contribution towards PF will be limited to the limit of Rs.2.5 lakh for which the interest will be tax free. In this regard, it should be noted that at least 12% of an employee’s basic salary and performance wages will be deducted as provident fund on a monthly basis.

    01 March 2021

  • Union Budget 2021 Highlights - Your retirement savings to take a hit

    During the Union Budget 2021, the Ministry of Finance announced that the tax-free return for Unit Linked Insurance Plans (ULIPs) and Provident Funds (PFs) have been restricted at Rs.2.5 lakh each.

    Previously, a limit of Rs.7.5 had been imposed on the employer’s contribution to PF. Now contribution above Rs.2.5 lakh will be taxable during the time of withdrawal of the PF amount.

    Earlier, if you had paid premiums less than 10% of the total insurance cover, than the maturity amount would not be taxable. However, now any amount above Rs.2.5 lakh will be taxed by the government.

    02 Feb 2021

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