What is Employees' Provident Fund (EPF)?
The Employees' Provident Fund (EPF) is a government-backed savings scheme designed to provide financial security to salaried employees after retirement. Managed by the Employees' Provident Fund Organisation (EPFO), EPF contributions are made by both the employee and the employer. These contributions accumulate overtime and earn interest, ensuring a stable financial cushion for the employee's future. Employees can withdraw their EPF under specific conditions, including retirement, unemployment, or certain emergencies.
EPF withdrawal eligibility criteria
Withdrawal reason
| Eligibility criteria
|
Retirement
| Allowed after reaching 58 years of age
|
Unemployment
| Can withdraw up to 75% after one month, remaining 25% after two months
|
Medical Emergencies
| Allowed for self or family members without minimum service requirement
|
Home Loan Repayment
| Requires at least five years of continuous service
|
Marriage/Education
| Allowed after seven years of service
|
When Can You Withdraw EPF?
You can withdraw your EPF amount in various situations, including:
Retirement: Full withdrawal is allowed upon reaching the age of 58.
Resignation or Job Change: Partial withdrawal is permitted after two months of unemployment.
Medical Emergencies: Funds can be withdrawn for medical treatment without a waiting period.
Marriage or Higher Education: Available after seven years of service.
Home Loan Repayment: Allowed after five years of continuous employment.
New EPF withdrawal rules
Online withdrawals for faster processing: EPF withdrawal continues to be processed through the UN portal with Aadhaar-based authentication, reducing paperwork and processing time.
Employer approval is waived for Aadhaar-verified online claims where KYC details and service records are digitally validated.
Continued interest on inactive accounts: EPF accounts continue to earn interest even if no contributions are made, as per EPFO rules.
Tax benefits for long-term holders: Withdrawals after five years of continuous service remain tax-free under prevailing income-tax provisions.
Certain eligible EPF advance claims continue to be auto-settled by EPFO, subject to limits and conditions notified from time to time.
How to withdraw PF amount?
You can withdraw your PF amount either online or offline. Online withdrawal is the preferred method as it is quick and hassle-free. You need an activated UAN, linked Aadhaar, and a registered bank account. Offline withdrawal requires filling out the Composite Claim Form and submitting it to the regional EPFO office.
Steps to apply for EPF withdrawal online on the UAN Portal
Log in to the EPFO UAN Member Portal.
Go to the "Online Services" tab and select "Claim (Form-31, 19, 10C)".
Verify your bank account details and click "Proceed for Online Claim".
Select "PF Advance (Form-31)" and mention the purpose of withdrawal.
Enter the withdrawal amount and upload necessary documents.
Submit the request and track the status on the portal.
How to withdraw your EPF without UAN?
If you don’t have a Universal Account Number (UAN), you can withdraw your EPF manually. Visit the nearest EPFO office and fill out Form 19 for final settlement or Form 31 for partial withdrawal. Attach KYC documents like Aadhaar, PAN, and bank details for processing.
Types of EPF withdrawal: Complete vs Partial
Type
| Conditions
|
Complete withdrawal
| Allowed after retirement or two months of unemployment
|
Partial withdrawal
| Allowed for medical emergencies, home loans, marriage, or higher education
|
Documents and Forms Required for EPF Withdrawal
Aadhaar Card
Permanent Account Number (PAN)
Cancelled Cheque
Composite Claim Form (for offline withdrawal)
Employer Certification (if required)
Process to enter Exit Date for PF withdrawal
To withdraw your EPF amount smoothly, it is essential to update your exit date on the EPFO UAN portal. The exit date represents your last working day in the organization and is required for claim processing. Without this update, your withdrawal request may get rejected or delayed. Employees can update their exit date themselves if their employer has not done it.
Steps to enter exit date in UAN portal
Log in to the UAN Member portal.
Go to the ‘Manage’ section.
Select ‘Mark Exit’ option.
Enter last working date.
Select exit reason.
Confirm and submit.
Check confirmation under “Service History”.
EPF withdrawal taxability
The tax implications of EPF withdrawal depend on the duration of service and the withdrawal amount.
If you withdraw your EPF balance before completing five years of continuous service, the amount is taxable under certain conditions. A TDS of 10% is applicable if the withdrawal amount exceeds ₹50,000 and PAN is provided. If PAN is not provided or not linked, higher TDS may apply as per prevailing income-tax rules.
However, EPF withdrawals after five years of service are entirely tax-free, subject to applicable income-tax provisions. If an employee switches jobs and transfers their EPF balance instead of withdrawing, the years of service are carried forward for tax purposes.
How to check PF withdrawal status?
You can check your EPF withdrawal status online using the EPFO portal or the UMANG mobile app.
Steps to check PF withdrawal status online
Visit the EPFO member portal.
Log in using UAN and password.
Go to "Online Services" and select "Track Claim Status".
View claim status.
Alternatively, you can check your EPF withdrawal status via the UMANG app or by calling the EPFO toll-free number (14470).
Conclusion
EPF withdrawal is a simple process when done online. Understanding the eligibility criteria, withdrawal options, and tax implications ensures a smooth claim process. Whether you are retiring, switching jobs, or facing financial emergencies, withdrawing your PF amount can provide the necessary financial support.
