EPFO: Wedding, education, healthcare—Can members withdraw 100% of provident fund savings? Rules and limits, explained

Subscribers of the Employee Provident Fund Organisation (EPFO) are now allowed to withdraw the maximum eligible funds, including the employee and employer shares, as per a Labour Ministry release last year.

The EPFO’s Central Board of Trustees (CBT) approved the simplified withdrawal rules, which allow EPF members to access up to 75% of their total corpus, with mandatory requirement to keep at least 25% of the funds untouched as a buffer.

Can you withdraw full EPF funds? Rules explained

EPFO members are allowed to withdraw up to 100% of eligible funds i.e. 75% of their provident fund balance, after setting aside required minimum balance. Partial withdrawal provisions were simplified in October last year by merging 13 provisions into the three categories — Essential needs, housing related needs and special circumstances.

The special circumstances category includes provision for job loss, where you can claim up to 75% immediate withdrawal and the remaining 25% after two months of unemployment. There are three types of withdrawal claims allowed, and you will be required to state the reason why you want to make a withdrawal.

Types of withdrawals allowed are as specified below:

Which forms to use for EPF partial, withdrawal claim?

Partial withdrawal of EPF funds allows members to claim non-refundable advances while actively employed. To make this claim, you will have to fill and submit Form 31.

Further, the new rules also extend the period to avail early withdrawal / premature final settlement of EPF from the existing two months to 12 months; and final pension withdrawal from two months to 36 months.

The final provident fund settlement requires submission of Form 19. Under this, you can claim withdrawal of your full PF balance (inclusive of employee share, employer share, and interest earned).

When are members eligible for 100% PF, pension?

Subscribers only become eligible for 100% funds withdrawal once they have retired or resigned and remained continuously unemployed for at least two months i.e. 60 days.

For pension, at time of retirement, you can choose to either withdraw amount in full or maintain annuity in EPS by availing a Scheme Certificate. Submitting Form 10C allows you to withdraw accumulated pension as a lumpsum, if your total continuous service is less than 10 years. Beyond 10 years, you must secure a Scheme Certificate and await monthly pension payouts at age 58.

How long does PF withdrawal claim take?

• Online claims for members who have completed full KYC take between three to seven working days, according to the FAQ website.
• Meanwhile, auto-mode eligible claims take 72 hours, it said.
• And offline physical claims submitted to EPFO office can take up to 20 working days.
• Once successfully submitted, claims are generally approved and settled (credited to bank account) within seven to 15 working days.
• You will receive an SMS alert at every stage of the process — submitted, approved, and disbursed.

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.