EPF Withdrawal Rules: Know How Much Money Members Can Withdraw

The Employees Provident Fund Organisation (EPFO), one of the world's largest social security organisations, allows employees to withdraw a part of their savings for major life events such as marriage, higher education, buying or construction of a house or other reasons, including medical illness and unemployment.

Withdrawal of Provident Fund:

Individuals who have contributed money to their PF account can make three different types of withdrawals:

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

Employed:

An individual is not allowed to withdraw PF funds, partially or fully, until the time they are employed.

Unemployment:

An individual can withdraw 75 per cent of the savings amount if they are unemployed for at least one month. They can withdraw the entire balance if they have been unemployed for a period of two months or more.

Education:

Members can withdraw up to 50 per cent of the total employee's contribution to EPF to pay for their higher education or to bear the education cost of their children after class 10.

House:

For purchasing or constructing a house, 90 per cent of the EPF amount can be withdrawn. Members can also take an advance from their PF account for home improvements under Para 68B (7) by simply declaring that the house is at least five years old.

Notably, any provident fund withdrawals made within five years of the account's creation are subject to taxes. However, there won't be any TDS charged if you remove less than Rs 50,000.

Marriage:

Account holders can withdraw up to 50 per cent of the savings to pay for the marriage expenses.

Changing jobs:

An individual is not required to withdraw their savings when switching jobs. The money can easily be transferred if the Universal Account Number (UAN) is active and the relevant forms have been submitted.

Also Read | EPFO Simplifies PF Claim Settlement Process: All Changes Explained

Retirement:

According to the EPF Act, a member must apply for their final settlement claim when they retire at the age of 58. They also qualify for the EPS amount if the member has continued to serve for more than 10 years.

How to withdraw PF money?

Employees can start the withdrawal process either online or offline. To start the withdrawal, an individual needs to deposit the Composite Claim Form (Aadhaar)/Composite Claim Form (non-Aadhaar). Alternatively, they can start the process on the EPFO portal.