EPF Withdrawal Rules 2026

EPF withdrawal rules are periodically updated to improve ease of access, digitisation, and member convenience. While the core principles of EPF withdrawals remain unchanged, recent clarifications and process improvements have made it easier for employees to manage withdrawals, transfers, and tax compliance. 

Below are some of the essential EPF withdrawal rules every member should be aware of before initiating a claim.

Understanding EPF and Its Significance 

The Employees' Provident Fund (EPF) is a retirement savings scheme for salaried employees in India. It fosters financial security through joint contributions from employees and employers. Over time, this fund accumulates, providing a substantial corpus that can be accessed under specific circumstances, such as retirement, medical emergencies, or unemployment.  

Withdrawal of Provident Fund  

Provident Fund (PF) is primarily intended for withdrawal upon retirement. However, specific PF withdrawal rules permit individuals to access the accumulated funds in case of emergencies.

There are three types of PF withdrawals:

• Final PF Settlement
• Partial PF Withdrawal
• Pension Withdrawal Benefit

In certain situations, individuals can withdraw a portion of their PF balance before maturity, except in cases of unemployment.

Here are some conditions under which premature PF withdrawal is allowed. 

EPF Withdrawal Rules

As of 2026, the EPF withdrawal rules have undergone significant transformations to enhance accessibility and convenience for members. Below mentioned are some of the basic rules that one must know:

• You cannot withdraw PF Funds-partially or fully, till the time you’re employed.
• You are allowed to withdraw up to 75% of the funds if unemployed for at least 1 month and the balance amount if you are unemployed for 2 months or more.
• You cannot avoid the deduction of TDS on EPF withdrawals through Form 15H/15G.
• If you intend to withdraw Rs 50,000 or more from the corpus within five years of opening an EPF account, you will be levied a TDS of 10% (if you hold a valid PAN card) or 30% (if you do not have a PAN Card).
• You can avail of a loan against the PF savings if you have been in service for a certain duration.
• You are not required to withdraw the balance from your old PF account to your new one while changing jobs. The money can be easily transferred if your UAN is active and the necessary documents/forms are submitted. 

New Updates on EPF Withdrawals 

Introduction of ATM and UPI Withdrawals  

In a groundbreaking move, the Employees' Provident Fund Organisation (EPFO) is set to roll out an ATM card facility, enabling members to withdraw their EPF savings directly from ATMs. 

As per India Filings report, this initiative, part of the EPF 3.0 project, is anticipated to launch by mid-2025, revolutionising the way members access their funds. Additionally, plans are underway to facilitate EPF withdrawals via Unified Payments Interface (UPI), further streamlining the process and reducing the traditional waiting period associated with fund disbursement.  

Reasons for EPF Withdrawal and Applicable Rules 

EPF withdrawals aren't limited to unemployment or retirement. Various life events warrant access to these funds. Here's a breakdown: 

1. Marriage
Members can withdraw up to 50% of their contribution for their own or their children's marriage, provided they've completed seven years of service. This provision underscores the EPF's role in supporting significant family milestones.

2. Education
One can withdraw up to 50% of the total employees’ contributions to EPF to pay for the education costs of their children after class 10, provided they have completed 7 years of PF contributions.

3. Medical Emergencies
In times of health crises, members can withdraw up to six months' basic wage and dearness allowance or the employee's share with interest, whichever is less. This facility extends to medical treatments for the member or immediate family members, ensuring financial support during critical times.

4. Purchasing Residential Property or Plots 
As per PF withdrawal rules, account holders can withdraw funds prematurely to purchase vacant land or prefabricated houses. 

EPFO has set specific withdrawal limits for this purpose, such as – 

5. Home Renovation
The latest PF rules allow withdrawals of 12 months' basic salary + Dearness Allowance or the employee’s PF share with interest (whichever is lower) for home renovation, improvement, or expansion. The property can be owned by the account holder, their spouse, or jointly. This facility is available twice—after 5 years and 10 years of property completion.

EPF rules also permit 90% withdrawal at 54 years of age or one year before retirement. In case of an employee’s sudden demise, their nominee can claim a full settlement (Form 20) or a monthly pension (Form 10D). 

Step-by-Step Guide to EPF Withdrawal 

Withdrawing from your EPF account has become more streamlined, especially with digital advancements. Here's how you can proceed: 

Online Withdrawal via EPFO Portal: 

• Log in: Access the EPFO member portal using your Universal Account Number (UAN) and password.
• Verify Details: Ensure your KYC details—Aadhaar, PAN, and bank account—are updated and verified.
• Initiate Withdrawal: Navigate to the 'Online Services' tab and select 'Claim (Form-31, 19 & 10C)' to initiate your withdrawal request.
• Choose Withdrawal Type: Specify the reason for withdrawal and enter the required details.
• Submit and Track: After submission, you can track the status of your claim through the portal.

Offline Withdrawal:

• Fill the Form: Download and complete the composite claim form from the EPFO website.
• Attach Documents: Include necessary documents such as a cancelled cheque and identity proof.
• Submit to Employer: Forward the completed form and documents to your employer for attestation.
• EPFO Submission: The employer will submit the attested form to the EPFO office for processing.

Documents Required for EPF Withdrawal 

To ensure a smooth withdrawal process, keep the following documents handy:

• Composite Claim Form: Available on the EPFO website.
• Identity Proof: Aadhaar card, passport, or driving license.
• Bank Account Details: A cancelled cheque with your name and account number.
• PAN Card: Essential for tax deduction purposes.
• Form 15G/15H: Applicable for individuals seeking exemption from TDS, subject to eligibility.

Addressing Grievances: EPF Withdrawal Assistance 

Encountering issues during the withdrawal process? The EPFO has established a dedicated grievance portal to assist members:
1. EPFiGMS (EPF i-Grievance Management System): Register your grievance related to withdrawals, transfers, or account discrepancies. The portal facilitates tracking and timely resolution of complaints. 

Tax Implications on EPF Withdrawal 

Understanding the tax aspects of EPF withdrawals is crucial to avoid unexpected liabilities: 

Before 5 Years of Service:

• Taxable Components: Employer's contribution and interest earned are taxable. If you've claimed deductions under Section 80C for your contributions, those amounts become taxable upon withdrawal.
• TDS Deduction: Withdrawals exceeding ₹50,000 attract a 10% TDS, provided PAN is submitted. Without PAN, the TDS rate increases to 30%. 

After 5 Years of Service:

Withdrawals after five years of continuous service are tax-exempt, offering a significant incentive for long-term savings.

• Retirement Withdrawals: Upon reaching 58 years, members can withdraw the full EPF balance tax-free, provided the five-year service condition is met.
• Strategies to Minimise Tax Burden: 
  Transfer Instead of Withdraw: When changing jobs, opt to transfer your EPF balance to the new employer to maintain the continuity of service and avoid tax implications.
• Submit Form 15G/15H: If your total income is below the taxable limit, submitting these forms can help avoid TDS on withdrawals.
• Ensure PAN Linking: Always ensure your PAN is linked with your EPF account to benefit from lower TDS rates.

Conclusion 

Your EPF savings represent years of hard work and financial discipline. Understanding the withdrawal rules and tax implications empowers you to make informed decisions, maximise your savings, and avoid unnecessary tax liabilities. Whether you're withdrawing for an emergency, a significant life event, or retirement, staying updated with the latest EPF rules ensures a smooth and hassle-free experience.