EPFO updates: How can you withdraw Employees’ Provident Fund at present? 

The Employees’ Provident Fund (EPF), commonly known as PF (Provident Fund), is a compulsory savings scheme for employees of eligible organisations, serving as a retirement fund. Employees can access the funds accumulated in the EPF after retirement. The Employees' Provident Fund Organisation (EPFO) administers various employee-centric schemes, including provident funds, pensions, and insurance for workers in the formal sector. Among the key schemes managed by the EPFO is the Employees’ Provident Fund (EPF) scheme.

Per the rules of the Employees' Provident Fund (EPF), employees are required to contribute 12% of their basic pay each month to the fund, with the employer matching this contribution. The funds deposited in EPF accounts accrue interest annually, and employees can withdraw the total amount accumulated in their EPF upon retirement.

The government has recently relaxed regulations and increased the one-time withdrawal limit from provident fund (PF) accounts. Members and subscribers can now withdraw Rs 1 lakh from their PF account, up from the previous limit of Rs 50,000.

EPF can only be fully withdrawn in two situations:

Retirement: You may withdraw the entire accumulated corpus upon retirement.
Unemployment: If you are unemployed for more than 1 month, you can withdraw 75% of the balance. After 2 months of unemployment, you can withdraw the remaining 25%.
One should note that individuals cannot fully withdraw their EPF balance when switching employers unless they are unemployed for two months or more during the transition period.

EPFO members have the option to withdraw the full sum upon reaching the retirement age of 55. Additionally, they can withdraw up to 90% of the funds one year before retirement. In certain circumstances, such as unemployment, members may also withdraw a portion of their funds.

You have the option to make a partial withdrawal from your Employees' Provident Fund (EPF) account for purposes such as medical expenses, higher education, a wedding, or home renovations. The online EPF partial withdrawal feature enables you to conveniently access funds from the comfort of your home, providing a quick and hassle-free process.

EPF withdrawal new rules

The Employees' Provident Fund Organization (EPFO) issued a circular on April 16, 2024, stating that the PF partial withdrawal limit for auto claim settlements concerning medical treatment has been increased from Rs 50,000 to Rs 1 lakh.

It is essential to understand that withdrawals from your Provident Fund (PF) are generally allowed for circumstances like medical emergencies, marriage expenses, educational requirements, unemployment, home improvements, and other legitimate reasons.

To access various benefits through the Member Interface, members must meet the following criteria:

Activate their Universal Account Number (UAN) and ensure the associated mobile number is functional.

Have their Aadhaar details linked to the EPFO database, and utilize the OTP-based eKYC verification from UIDAI for claim submission.

Ensure their bank account and IFSC code are registered in the EPFO database.

Have their Permanent Account Number (PAN) linked in the EPFO database for PF final settlement claims if their service duration is less than five years.

These requirements are essential for members to apply for PF Final Settlement (Form 19), Pension Withdrawal Benefit (Form 10-C), and PF Part Withdrawal (Form 31) directly from the Member Interface.