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PF/EPF Withdrawal Rules 2023

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PF/EPF Withdrawal Rules 2023


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.

Steps for EPF Withdrawal Online

Step 1: Visit the EPFO member portal.

Step 2: Choose the “For Employees” option under the “Our Services” tab.

Step 3: On the new webpage click on the “Member UAN/Online Service (OCS/OTCP)” option under the “Services” tab of the “For Employees” page.

Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.

Step 5: Click on the “KYC” option under the “Manage” tab.

Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the “Digitally Approved KYC” section and check your KYC details. Ensure the details are correct.

Step 7: Click on the “Online Service” tab from the top menu to proceed with the withdrawal if all the KYC details are correct.

Step 8: Click on the “CLAIM (FORM-31, 19 & 10C)” option from the drop down menu.

Step 9: You will be redirected to a new webpage with an automatically generated “ONLINE CLAIM (FORM 31, 19 & 10C)” form.

Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.

Step 11: After the verification of the bank account, a “Certificate of Undertaking” will be generated. Click “Yes” on the certificate pop-up to proceed.

Step 12: Click on the “Proceed for Online Claim” option when prompted.

Step 13: For online fund withdrawal, select the “PF ADVANCE (FORM – 31)” option from the drop-down menu provided next to the “I want to apply for” option.

Step 14: A reason for claim has to be selected from the drop-down options provided next to the “Purpose for which advance is required” option. The fields provided for the address of the employee and the amount for advance is also required to be filled up.

Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.

Step 16: You might be required to upload certain scanned documents (depends on the nature of withdrawal).

Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number

Posted : 22/04/2023 9:47 pm