PF Withdrawal Rules 2023 – Rules, Documents Required and Types

EPF/PF Withdrawal

Employees’ Provident Fund (abbreviated as EPF)  is a popular retirement savings scheme for all employees in India – either on a mandatory or a voluntary basis. It falls under the aegis of the Employees Provident Fund Organisation (EPFO), a statutory body. It periodically reviews the PF withdrawal rules to make the process more seamless and improve the experience of its million+ subscribers. Typically, online PF withdrawal could take up to 3 working days and the offline process could take up to 20 working days. Let us now look at the rules for 2023.

EPF Withdrawal Rules 2023

Planning to withdraw a portion of your PF corpus? Well, here are some basic rules you need to be aware of:

• You cannot withdraw your PF funds, fully or partially, until the time you are employed.
• You can withdraw up to 75% of your funds if you are unemployed for at least one month and the remaining balance if you are unemployed for two months or more.
• If you are planning to withdraw ₹50,000 or more from your corpus within 5 years of opening your EPF account, the withdrawal will attract a TDS of 10% (provided you have a valid PAN card in India) or 30% (if you don’t have a PAN card).
• You can avoid TDS deduction by producing Form 15H or Form 15G.
• You could get a loan against your PF savings, provided you have been in continuous service for a specified number of years.
• You don’t need to withdraw the balance from your old PF account to your new one when you change jobs. The money can be transferred, provided your Universal Account Number (UAN) is active and you have submitted the relevant forms.
• You can withdraw your full PF balance if you have been unemployed for at least 2 months or if the joining date for your new job is more than 2 months after your last working day at your previous organisation.

Probable Reasons for PF Withdrawal

You can withdraw PF, provided you satisfy some conditions. Here are some reasons for which you can withdraw your PF funds:

1. For Educational Purposes

A PF account holder can withdraw up to 50% of their total contribution to their Employee Provident Fund (only the employee’s contribution). You can use this amount to pay for the education of your children after class 10 as well as for your own higher education.

2. For Medical Treatment

1. The period of hospitalisation must exceed a month.
2. You must be admitted to the hospital for any major surgery.
3. The individual should be on a leave approved by the employer for a disease, such as cancer, tuberculosis, paralysis, leprosy, a heart problem, or mental issues, etc. 

You can withdraw this money at any time during your service period. For this, you do not need to complete a number of years of service in your present organisation. The maximum amount that you can withdraw is your six months’ salary. This amount can be used for medical treatment of self or family.

3. For Repaying Existing Debt

You can withdraw an amount equivalent to 12 times your monthly salary from your EPF to repay your existing home loan. However, you will have to complete 5 years of continuous service in order to be eligible. 

The amount can be used to repay your present home loan or purchase a property or house. In order to avail the loan, the house must be in your name, your spouse’s name, or owned jointly. This benefit cannot be availed if this is not the case.

4. During Unemployment

Any PF account holder can withdraw 75% of the accumulated amount if they have been unemployed for more than a month after relinquishing employment. If the unemployment period exceeds 2 months, the remaining 25% can also be withdrawn.

Some other reasons for withdrawal might be:

• If the member reached the age of retirement.
• If a female employee is resigning to get married, or for pregnancy or childbirth.
•  If the individual is planning to move abroad permanently.
• Only a year is left before retirement. 

Due to natural calamities or cuts in electricity in the establishment or for investing in Varishtha Pension Bima Yojana.

5. For Marriage

You can opt to withdraw money from your EPF account to meet the necessary expenses for your wedding, wedding of a child, or wedding of a sibling. However, you can avail this benefit if you have completed at least seven years of continuous service. Up to 50% of the amount you have contributed towards your EPF account, and the interest accumulated can be utilised for a maximum of three times.

6. For Renovating Your House

1. The age of the house must be at least 5 years.
2. You can withdraw up to 12 months’ basic wage plus dearness allowance or an employee’s share with interest, whichever is lower.
3. You must have completed 5 years of continuous service.
4. The house that you wish to renovate must be in your name or your spouse’s name or jointly owned.
5. You can avail this facility only once in your lifetime.

7. For Construction or Purchase of a House

1. To opt for this facility, you must have completed at least 5 years of continuous service.
2. The house or land that you are purchasing must be in your name, your spouse’s name, or both. Any other combination is not permitted.
3. You can withdraw basic salary plus dearness allowance for up to 24 months.
4. There should be no legal disputes for the property in question. Further, you must provide proof of registration of the property to avail the benefits.

8. For Specially-Abled Individuals

According to PF withdrawal rules 2023, specially-abled account holders are eligible to withdraw 6 months’ basic salary and dearness allowance or the employee’s share of contribution along with interest, whichever is lower, to pay for their equipment.

Also Read

Section 192A of Income Tax Act : TDS on EPF Withdrawal

PPF Withdrawal Rules – Rules, Process and Tax Implication

Types of PF Withdrawal

On the EPFO member portal, you can complete three different types of PF withdrawals:

• Final settlement of your PF funds
• Partial withdrawal of your PF savings
• Withdrawal of your pension funds

To conduct any of the above mentioned activities, you will need the approval i.e. attestation of your employer. But make sure that your Aadhaar card is linked to your UAN.

3 Ways to Withdraw PF Amount 

For the members, who have an EPF account and have linked their Aadhaar card details with the Universal Account Number (UAN) can avail PF withdrawals in three ways:

1. Provident Fund Final Settlement

This type of PF settlement is done when you have reached retirement age and your service life has ended. If the account holder has passed away, the nominee would receive the payment.

2. Provident Fund Partial Withdrawal

This type of payment withdrawal takes place when you withdraw only a portion of the PF corpus so as to fulfil your financial requirement. 

3. Pension Withdrawal Benefits

If you continuously provide your services to the organisation for 10 years, you are eligible to receive pension benefits after retirement.

The withdrawal types mentioned above are possible from the EPFO member portal with the attestation of their employer.

Documents Required for PF Withdrawal

• Identity proof
• Address proof
• Composite claim form
• Two revenue stamps 
• One cancelled cheque on which the IFSC code and account number are visible 
• Bank statements in the name of the EPF member 
• Personal details, such as date of birth and father’s name 
• Income Tax Return (ITR) forms 2 and 3 (if the employee withdraws his EPF corpus before 5 years of continuous service)

Final Word

EPFO continues to make the PF withdrawal rules simpler with the sole objective of enhancing the experience of its subscribers. The time for EPF withdrawal has also been considerably reduced in the recent past.

But wait! Do you really need to withdraw your PF funds prematurely? A much simpler alternative could be Navi Instant Cash Loan, with which you can get up to ₹20 Lakh to meet any planned or unplanned expense, at attractive interest rates as low as 9.9% p.a. Download the Navi App today to check your eligibility and apply.

FAQs

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