EPF or PF Withdrawal Rules 2025 — Home, Medical & Retirement

Provident Fund (PF), also known as the Employees’ Provident Fund (EPF), is a contribution-based savings scheme designed to help salaried individuals build a secure financial future. Both the employee and employer contribute a fixed percentage of the salary every month to create a retirement corpus. This accumulated fund serves as a reliable source of income after retirement and can also be withdrawn under specific conditions during employment.

In India, the Employees’ Provident Fund Organisation (EPFO) a statutory body under the Ministry of Labour and Employment manages and regulates the EPF scheme. It ensures that employees in the organised sector have a strong financial backup to meet their post-retirement needs and unforeseen life expenses.

Understanding the PF withdrawal rules is important for every employee, as these guidelines determine when and how you can access your savings whether for a home purchase, medical emergency, or retirement planning. This knowledge not only helps you make informed financial decisions but also ensures you make the most of your long-term savings.

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EPF or PF Withdrawal Rules : The Essentials

You cannot withdraw money from your Provident Fund (PF) account whenever you wish, like from a regular savings account. The government has set specific EPF withdrawal rules to ensure that your savings remain protected for your retirement years.

There are two main types of PF withdrawals allowed under the scheme:

1. PF Advance (Partial Withdrawal)

This type of withdrawal lets you take out a portion of your PF balance while you are still employed. It is permitted only for specific reasons such as:

• Buying or constructing a house
• Repaying a home loan
• Medical emergencies
• Education or marriage expenses

You can apply for a partial withdrawal using Form 31 through the EPFO Unified Portal. Each reason has its own eligibility criteria, such as minimum years of service and withdrawal limits based on your balance.

2. PF Final Settlement (Full Withdrawal)

This is when you withdraw the entire PF amount, including your contribution, your employer’s contribution, and the accumulated interest. You can apply for full withdrawal when:

• You retire from service
• You are unemployed for two consecutive months or more

In this case, you need to submit Form 19 online through the EPFO portal.

3. Tax Rules on EPF Withdrawals

• Withdrawals made after 5 continuous years of service are completely tax-free.
• Withdrawals before 5 years may attract TDS and income tax, unless you qualify for certain exemptions.
• To avoid unnecessary deductions, ensure your PAN is linked and submit Form 15G or 15H, if eligible.

In short, the EPF withdrawal process is designed to help you access your savings when truly needed while still safeguarding your long-term financial security.

Withdrawal of Provident Fund Types & Common Limits

The Employees’ Provident Fund (EPF) allows members to withdraw money under specific situations, ensuring that their long-term savings can also provide financial support during important life events or emergencies. However, every withdrawal type comes with its own eligibility rules, service requirements, and withdrawal limits.

Let’s look at the most common types of PF withdrawals and their conditions in detail:

1. Medical Emergencies

Health emergencies can arise unexpectedly, and the EPF allows you to withdraw funds to cover medical expenses for yourself or your family.

Key Rules:

• No minimum service period is required for medical withdrawals.
• Withdrawals can be made for the treatment of the member, their spouse, children, or dependent parents.
• The maximum limit is typically the lower of six months’ basic wages and dearness allowance or the total employee’s share of contribution with interest.
• Supporting documents such as medical certificates or hospital bills may be required while submitting the claim.

This provision ensures that your PF acts as a financial safety net during critical times without the need for loans or credit.

2. Home Purchase or Construction

The EPF scheme allows withdrawals for buying or constructing a new home, ensuring members can use their long-term savings for one of life’s biggest milestones.

Key Rules:

• The member should have at least 5 years of service under the EPF scheme.

• The withdrawal can be made either for purchasing a plot, buying a ready house, or constructing a home.

• The maximum withdrawal limit varies depending on the purpose:

  • For site purchase – up to 24 months’ basic wages and dearness allowance.
  • For construction or purchase of a house – up to 36 months’ basic wages and dearness allowance or the total of employee and employer contributions with interest, whichever is lower.

• The property should be in the name of the employee, spouse, or jointly owned.

3. Home Loan Repayment

EPF members can also use their balance to repay a home loan taken from a bank or financial institution. This feature is particularly useful for reducing outstanding liabilities.

Key Rules:

• The member must have completed at least 3 to 5 years of service, depending on EPFOcircular updates.
• The house or property must be registered in the name of the member, spouse, or jointly held.
• The maximum limit for withdrawal can be up to 90% of the total balance in the member’s account.
• Necessary documents such as home loan statements, lender certificates, or proof of ownership need to be submitted.

This facility allows members to use their own long-term funds to clear debts and reduce financial burden.

4. Retirement or Pre-Retirement

When a member retires or is about to retire, the EPF balance becomes a crucial part of their post-employment income.

Key Rules:

• Members can make a full withdrawal (final settlement) after retirement, using the Composite Claim Form or through the EPFO Unified Portal.
• Pre-retirement withdrawals are allowed up to one year before retirement, provided the member has reached age 54 or 90% of the retirement age.
• The withdrawal includes both employee and employer contributions with accumulated interest.
• Members can also opt to continue earning interest on the balance up to 3 years after retirement, if they wish to delay withdrawal.

This ensures that your PF savings serve their primary purpose providing financial stability and independence after retirement.

In summary, the EPF withdrawal rules are structured to balance your immediate financial needs with long-term savings security. Whether it’s for medical support, home ownership, loan repayment, or retirement, understanding these limits ensures you use your Provident Fund wisely and in compliance with EPFO regulations.

Understanding the Withdrawal of Provident Fund

Before you even think about withdrawing, the most important step is to check your UAN (Universal Account Number).

For any online withdrawal, your UAN must be KYC-compliant. This means your UAN must be correctly linked with your:

• Aadhaar Card
• PAN Card
• Bank Account (with the correct IFSC code)

If your KYC details are complete and verified, the entire withdrawal process can be done online, making it fast and hassle-free.

EPF Withdrawal Rules 2025: what changed recently

The Employees’ Provident Fund (EPF) serves as a critical retirement savings tool for salaried employees in India. However, EPF withdrawals are governed by specific rules to ensure disciplined savings.
Below are the key withdrawal provisions under the latest EPF rules for 2025:

1. While Employed:
Employees cannot withdraw their EPF, either partially or fully, during active employment.

2. Unemployment Period:
Up to 75% of the PF balance can be withdrawn after one month of unemployment, with the remaining balance accessible after two months

3. TDS Applicability:
Withdrawals of ₹50,000 or more within five years of opening the EPF account attract 10% TDS (if PAN is provided) or 30% (if PAN is not furnished). Submission of Form 15G/15H does not exempt one from TDS deduction.

4. Loan Against PF:
Members can apply for a loan or advance against PF savings after completing a minimum prescribed service period, depending on the purpose (e.g., housing, medical needs, education).

5. Job Change:
EPF balances need not be withdrawn when switching jobs. Funds can be seamlessly transferred online through the Universal Account Number (UAN).

6. Full PF Withdrawal:
Full withdrawal is allowed after two months of continuous unemployment, or if the joining date at a new job is more than two months from the previous employment’s last working day.

Steps to Enter, Exit, and Withdraw PF

1. Entering PF

Joining PF is automatic when you start working with an organisation that’s registered under the Employees’ Provident Fund (EPF) scheme.
Both you and your employer contribute a percentage of your salary every month, helping you build long-term savings for retirement.
Your PF account is linked to your Universal Account Number (UAN), which stays the same throughout your career.

2. Withdrawing PF Advance (Form 31)

This process is for partial withdrawals also called PF advances that can be made while you are still employed. These are permitted only for specific reasons like medical emergencies, education, or home purchase.

How to Withdraw PF Online

1. Log in: Visit the official EPFO Member e-Sewa Portal and sign in using your UAN and password.
2. Check KYC: Go to ‘Manage’ → ‘KYC’ and ensure your Aadhaar, PAN, and bank details are verified.
3. Go to Claim: Click ‘Online Services’ → ‘Claim (Form-31, 19, 10C & 10D)’.
4. Verify Bank Account: Enter the last four digits of your bank account to confirm.
5. Proceed for Claim: Select ‘PF Advance (Form 31)’ under “I want to apply for.”
6. State Purpose: Choose the reason for withdrawal (e.g., Medical Emergency, Purchase of House).
7. Enter Details: Specify the amount and upload a scanned copy of your cheque or passbook.
8. Get OTP: Click ‘Get Aadhaar OTP’ and verify with the OTP sent to your Aadhaar-linked mobile number.
9. Submit: After OTP verification, submit your claim.

Funds are generally credited to your linked bank account within 5–10 working days.

3. Exiting PF : Transfer or Final Settlement

When you change jobs, retire, or leave employment permanently, you have two choices transfer your PF or withdraw it fully.

(a) EPF Transfer (When Changing Jobs)

If you join a new organisation, you don’t need to withdraw your PF. Instead:

• Log in to the EPFO Unified Member Portal using your UAN.
• Go to ‘Online Services → Transfer Request’.
• Choose whether your previous or current employer should verify the request.
• Once approved, your funds and service history move seamlessly to your new EPF account.

This helps maintain uninterrupted interest accumulation and a continuous record of service.

(b) Final Settlement (When Leaving the Workforce Permanently)

If you retire, move abroad, or remain unemployed for two months or more, you can withdraw your entire PF balance using the Composite Claim Form (Aadhaar) online.
Before applying, make sure:

• Your UAN is active
• KYC details (Aadhaar, PAN, bank account) are verified
• Your employer has updated your date of exit

Once processed, the settlement amount is credited directly to your bank account.

Documents Required for EPF Withdrawal

To withdraw money from your EPF account, you need to make sure your identity and bank details are verified. Whether you are applying for a full withdrawal or a partial advance, having the right documents ready will make the process smooth and quick.

Basic Documents Needed for All Withdrawals

1. UAN (Universal Account Number):
   Make sure your UAN is active and your mobile number is linked to it. You’ll need it to log in to the EPFO portal and verify your claim through OTP.

2. Aadhaar Card:
   Your Aadhaar should be linked with your UAN and verified in the EPFO system. Aadhaar-based authentication is mandatory for online claims.

3. PAN Card:
   PAN is required for tax and TDS purposes, especially if you are withdrawing before completing 5 years of continuous service.

4. Bank Account Details:
   You’ll need to upload a scanned copy of your cancelled cheque or the first page of your bank passbook.
   Ensure the following details are clearly visible:

   • Your name
   • Account number
   • IFSC code

5. Tip: The bank account should be in your name and linked with your UAN.

Additional Documents for Partial Withdrawals (Advances)

Depending on the reason for withdrawal, EPFO may ask for supporting proof:

• Medical Treatment:
  Hospital bills, doctor’s certificate, or hospital admission proof.
• Purchase or Construction of House:
  Property registration papers, builder’s agreement, or declaration form.
• Home Loan Repayment:
  Latest loan statement from the bank or housing finance company.
• Marriage or Education:
  Invitation card, fee receipts, or education certificate (in som cases).
• Employer Certificate:
  Sometimes required if you’re applying for a specific type of advance or withdrawal through your employer.

For Online Claims

If your KYC is verified (Aadhaar, PAN, and bank account), most of these documents are already part of your EPFO profile.
For Aadhaar-based online claims, you usually don’t need to upload physical documents except when proof of purpose is mandatory for certain withdrawal reasons.

Grievance Portal for PF Withdrawal : How to Get Help

Sometimes, even after submitting your EPF withdrawal request correctly, your claim might get stuck, delayed, or rejected. This can happen due to technical errors, incomplete KYC, or pending employer verification.

To make things easier for employees, the Employees’ Provident Fund Organisation (EPFO) has created a dedicated online platform called the EPF i-Grievance Management System (EPFiGMS) a one-stop solution to raise, track, and resolve PF-related issues.

What is EPFiGMS?

The EPF i-Grievance Management System (EPFiGMS) is the official complaint redressal portal of EPFO. It allows members, employers, and pensioners to register complaints related to:

• Pending or rejected withdrawal claims
• Errors in PF balance or passbook
• UAN or KYC linking issues
• Employer not updating contributions
• Transfer or settlement delays

This system ensures that every complaint is recorded, acknowledged, and tracked until it is resolved by the concerned EPFO office.

How to File a Complaint on the EPFiGMS Portal

Here’s a simple step-by-step guide to raising your concern online:

1. Visit the official website:
   Go to https://epfigms.gov.in/
2. Click on ‘Register Grievance’.
3. Select your category:
   Choose PF Member, Pensioner, or Employer depending on who you are.
4. Enter your details:
   Fill in your UAN, name, and contact details.
5. Choose the grievance category:
   Select the relevant issue type, such as Claim-related, KYC update, or Transfer.
6. Describe your issue clearly:
   Explain the problem briefly but accurately. Mention any reference number or date if applicable.
7. Submit the complaint:
   Once you submit, you’ll receive an acknowledgment number (complaint number).

You can use this number to track your complaint status on the same portal under the “View Status” tab.

Other Ways to Reach EPFO

If your issue isn’t resolved within a reasonable time, you can also reach EPFO through:

• Toll-Free Helpline: 1800 118 005
• Email Support: accessible via the “Helpdesk” section of the EPFO website
• Regional Office Visit: You can visit the EPFO regional office assigned to your employer for direct support

If the issue remains unresolved, you can send a reminder or escalation through EPFiGMS to ensure follow-up by senior officers.

Lowering Tax Burden on EPF Withdrawal: Practical Tips

Managing your EPF wisely can help you reduce or completely avoid tax deductions during withdrawal. Here are some practical ways to lower your tax burden and make the most of your retirement savings:

1. Stay Invested for 5 Continuous Years

The best way to make your EPF withdrawal completely tax-free is by staying invested for at least five continuous years of service. Once you complete five years including any service transferred from previous employers your entire EPF balance becomes fully exempt from tax, covering both your contributions, your employer’s share, and the accumulated interest. This simple yet powerful step not only saves you from paying TDS on premature withdrawals but also allows your retirement corpus to grow steadily through the power of compounding, ensuring long-term financial security.

2. Submit PAN and Form 15G/15H (If Withdrawing Before 5 Years)

If you withdraw your EPF before completing five years of continuous service, TDS (Tax Deducted at Source) may apply.
To lower this burden:

• Submit your PAN to ensure TDS is deducted at 10% instead of 30%.
• If your total income is below the taxable limit, submit Form 15G (for those below 60) or Form 15H (for senior citizens) to avoid TDS completely.

These forms can be uploaded while filing your claim online through the EPFO portal.

3. Use Partial Withdrawals (PF Advances) Instead of Full Withdrawal

If you face an urgent financial need such as for medical treatment, education, or housing  it’s wiser to opt for a PF Advance (Form 31) instead of closing your Provident Fund account entirely. These partial withdrawals are non-taxable and permitted for specific purposes as outlined by the EPFO. By choosing this route, you can access the funds you need without disrupting your long-term savings. It ensures your PF account remains active, allowing your retirement corpus to continue growing while you handle immediate financial requirements.

4. Keep Proper Documentation for Tax Proof

Always keep a record of key documents such as:

• EPF passbook or statement
• Salary slips showing EPF contribution
• Form 15G/15H copies
• Acknowledgment receipts from EPFO

These documents act as proof of your employment duration and help during income tax return filing or verification.

5. Think Long-Term Let EPF Work for You

Treat your EPF as a long-term investment, not just a savings fund. Staying invested beyond five years provides you tax-free growth, risk-free returns, and a steady retirement corpus.
This disciplined approach aligns perfectly with Motilal Oswal’s philosophy building long-term wealth through smart, tax-efficient investing.

Conclusion

The Employees’ Provident Fund (EPF) continues to be the foundation of retirement planning for millions of salaried Indians a safe, government-backed, and tax-efficient savings option. When held for five years or more, it not only secures your post-retirement future but also offers complete tax exemption on withdrawals.

With the 2025 updates and digital reforms, the EPFO withdrawal and grievance systems have become faster, smoother, and more transparent than ever before. Still, it’s essential to review your eligibility, KYC, and required documents before applying for a withdrawal to avoid unnecessary delays.

While EPF builds a stable safety net, consider diversifying your portfolio for greater long-term wealth creation. Combining the security of EPF with Motilal Oswal’s expert research, mutual funds, and equity investment solutions can help you achieve balanced financial growth ensuring both safety and superior returns for your retirement journey.