Unlocking Your EPF: A Clear & Simple Guide to Provident Fund Basics and Withdrawal

Your​‍​‌‍​‍‌​‍​‌‍​‍‌ Employees Provident Fund (EPF) is not only a monthly deduction from your salary, but it is also your long-term financial cushion. If you are planning for retirement or have urgent expenses, it is always helpful to know the EPF basics and its withdrawal process, so you can access your money in a smart and legal way. The article provides a breakdown of the recent rules and also serves as a guide on how to withdraw your PF in 2025 in a step-by-step manner. For in-depth stories and updates on worker protections, visit our Labour Rights coverage.

What Is EPF?

EPF (Employees’ Provident Fund) refers to a mandatory savings scheme in which the aim is to provide financial support to retired people who have worked as salaried individuals. Both the employee and the employer contribute a set percentage of the employee’s salary each month. The amount thus accumulated earns interest annually, and so it becomes one of the most dependable savings instruments for employees in India.

Latest EPF Withdrawal Rule Changes (2025)

EPFO has recently withdrawn some restrictions that were in place for the withdrawal of your PF, making the whole operation quicker and more flexible.

So, what is different now:

• The 13 different reasons for which one could withdraw earlier are now organised into 3 main categories: Essential Needs, Housing Needs and Special Circumstances.

• It is possible to make a partial withdrawal only if you have already completed 12 months of service.

• In some cases, you are allowed to withdraw the total amount of your EPF.

• After withdrawal, there should be at least 25% of the account balance left.

• It is allowed to do a full settlement after a continuous period of unemployment of 12 months.

• In the case of pension (EPS), the waiting period is 36 months of unemployment.

When Are You Allowed to Withdraw EPF?

1. Partial Withdrawal (Advance)

Partial funds may be withdrawn during employment for a limited number of uses, such as:

• Medical emergencies

• Higher education (post Class 10)

• Marriage of self or dependents

• Purchase or construction of a home

• Repair of a house with old or new materials

• The amount is determined by your contribution, service period, and purpose.

2. Full Withdrawal (Final Settlement)

This is the case when:

• You have already resigned from the job.

• You have been unemployed for at least a month.

• After one month, you can withdraw 75% and the remaining 25% after 12 months.

• Only after 36 months of unemployment is pension withdrawal (EPS) allowed

Withdrawal Eligibility Criteria

Make sure that the following conditions are met before filing an application:

● UAN (Universal Account Number) should be active

● Aadhaar must be linked in order to be verified

● The bank account with IFSC should be updated.

● For tax purposes, the PAN card must be linked (important)

Step-by-Step EPF Withdrawal Process

1.Head over to the EPFO Member e-Sewa portal and log in there.

2.Select ‘Online Services’ > ‘Claim’

3.Pick the right form:

• Form 31 – Partial withdrawal

• Form 19 – Final settlement

• Form 10C – Pension withdrawal

4.Choose the reason for withdrawal and fill in the amount.

5.Attach the files of your supporting documents (if required)

6.Confirm with Aadhaar OTP and send it in.

7.The status of your application can be checked under ‘Track Claim Status’

Tax Benefits & TDS Rules

• Withdrawals after completion of 5 years of service are not taxable.

• If the withdrawal is made before 5 years, a 10% TDS may be applicable in case PAN is provided.

• Filing Form 15G or 15H may be helpful in TDS exemption if the income is below the taxable limit.

The Reason why These New EPF Rules are Important

1. Process made easier: Reduced categories and simplified reasons

2. More flexibility: Partial and full withdrawals for major life needs

3. Financial safety: Some balance has to be there to protect the retirement funds

4. Faster access: Early withdrawal options for genuine emergencies

Final Takeaway

Moreover, the EPF is not solely a retirement fund; it is a financial backup for the most important life milestones. The updated withdrawal rules enable the employees to get their hands on the money in a better way without jeopardising their long-term security. Knowing the process, qualifications, and tax implications will let you take out money from EPF in the smartest way and at the right time.

If you were just planning ahead or were hit by a financial emergency, knowledge is still your greatest asset. Put your EPF to work for your ​‍​‌‍​‍‌​‍​‌‍​‍‌future.