All about EPFs And Rules of Withdrawal of EPFs.


An investment fund built over a long term by the contribution of employee, the employer and the government refer to as Employees Provident Fund. For providing net safety to people on their retirement this program is controlled and governed by government itself. An employee gets the amount invested over years along with the interest at the time of retirement. However, there are certain rules one should know before withdrawal from a PF account. Withdrawal from an EPF corpus is governed by certain rules presented here.

EPFO (Employees Provident Fund Organisation) is the prime body that controls this scheme. Contribution of 12% of the salary is done in order for an employee’s provident fund. Along with this employer also contributes an equal share. However, only 3.67% of employer’s contribution goes towards EPF rest of 8.33% gets deposited as Employee’s Pension Scheme.

Three Cases Considered for Withdrawal of EPFs-

  • After age of 58 at the time of retirement.
  • If one suffers unemployment for two or months.
  • If one dies before specified age of retirement.

Important Points to be noted before withdrawal of Provident Funds.

Withdrawal of Provident fund should be subjected to emergency only. Some rules that should be kept in mind during withdrawal are-

  • If one withdraws funds before 5 years of account opening then taxes are applied.
  • Through online process PF can be easily transferred to a new account that’s why it is not necessary to withdraw funds when one changes their employer.
  • One cannot withdraw provident fund balance of a job he/she is currently employed.
  • EPFs are available for loans as well.

EPF Concerned Rules for Withdrawal.

  • For Medical Purposes:
  1. For any medical treatment an employee is allowed to withdraw his/her share with interest or six times the monthly salary from the PF.
  2. Parents, spouse, children, along with self are under the medical cover of PF.
  • Repayment of Home loan:
  1. If the house is registered in one’s name then he/she is allowed to withdraw 90% of the Fund for the repayment of the house loan outstanding.
  2. At least 3 years of service is compulsory for such withdrawal.
  • For Wedding:
  1. 7 years of service is required for such withdrawal.
  2. 50% of employee’s share along with the interest can be withdrawn.
  • Retirement:
  1. After completing 58 years of job a person can withdraw his/her OFF completely.
  2. 90% of the PF is allowed for withdrawal by an employee.
  • Unemployment:
  1. If a person is unemployed for more than a month, he/she can withdraw 75% of his/her PF.
  2. 25% of remaining funds can be withdrawn if the unemployment is more than 2 months.
  • For Purchasing or Constructing a house:
  1. For the purpose of buying a plot or building a house one can withdraw his/her EPFs.
  2. Property must be registered on the employee name officially.
  3. Minimum 5 years of total service is required for such withdrawal.
  4. 24 times of monthly salary for purchase and 36 times of the monthly salary for constructing a house can be withdrawn.
  5. In entire service tenure this withdrawal can only be done once.

EPF Withdrawal Rules Applicable before 5 years of Service.

TDS is applicable on the withdrawal of EPF before 5 year of continuous service. No TDS is deducted in case of withdrawal of amount less than 50,000. Following EPF rules should be kept in mind concerned with withdrawal before 5 years:

Withdrawal after Retirement.

  • After the age of 58, a member has to claim for the final settlement as per the EPF act.
  • Employee’s as well as employer’s contribution both forms the total PF balance.
  • If a member had worked more than 10 years than he/she is also eligible for EPS.
  • Pension benefits after retirement is served if a member completes his/her 10 years of service.
  • This withdrawal is tax-free.
  • The interest earned after retirement on EPF is taxable.
  • If a person doesn’t withdraw the funds for 3 years after retirement than he/she have to pay taxes on the interest gained.

Documents Required.

  • the universal account number is a compulsion. It is obtained by the employer.
  • Bank account details along with the name as per EPF account should be submitted clearly.
  • Funds are not allowed to be transferred to the third party when the holder is alive.
  • Details such as father’s name and date of birth should be same as the given identity proof.
  • Date of leaving and joining of organisation should be clearly mentioned.
  • All details should be submitted to EPFO and the employee should register his/her exit from the organisation.

Process to Withdraw EPFs.

Two processes are known for withdrawal of EPFs-

Provident Fund Withdrawal via New Form-

As this method does not require any employer attestation or approval that’s proved to be a big relaxation for employee. Member needs to submit Aadhar number if he/she wants to proceed by this method. Simple steps to follow are:

  • Upgradation of UAN details with Aadhar number.
  • Authentication of Aadhar by the employer.
  • Filling of withdrawal form online.
  • After filling and submission of form you will get your withdrawn amount straight in your bank account.

As this is a direct way of submission of form there is no delay in processing of withdrawal amount.

Provident Fund Withdrawal via Old Form-

Steps are:

  • Obtain form 19 for EPF withdrawal from the HR team. One can download this form from EPFO’s website too.
  • Fill all the compulsory details in the form.
  • A cancelled cheque leaf of the bank account is submitted for reference.
  • Submit the fully filled form to your employer.
  • After attesting your fully submitted form, employer will send it to the regional provident fund office for processing.

Amount withdrawn will be directly credited to your bank account after processing gets over.


Previously in 2016 amendments were done in this scheme by the government of India. Main amendments are-

  • After the age of 54 years 90% of EPF are allowed for withdrawal.
  • A person can withdraw 75% of the PF balance after leaving the job if he/she is unemployed for 1 month and remaining 25% after 2nd month of unemployment.

Taxes imposed on EPFs.

  • If withdrawal is before 5 years then TDS is imposed on the amount.
  • If PAN is furnished then TDS applied will be 10% otherwise 34.608% if PAN is not furnished.
  • No TDS will be deducted on the withdrawal of amount less than 50,000.

Cases where TDS in not Applied.

  • When termination from job is out of control of an individual, then in such case TDS is not deducted.
  • TDS is also not deducted when service is barred due to some serious medical conditions.

This are ways and rules by which withdrawal of EPF accounts are carried out.

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Hello everyone, my name is Sanju Hosh. Writing blogs, informative articles, reading books, and playing cricket are my interests. If you find my articles and blogs helpful, please hit like and comment in the comment section. You can share these articles with your friends so that they can also enjoy this content. Your appreciation will motivate me to write on new topics. You can also suggest topics you want to read in the future.

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