PF Withdrawal Rules 2022 : For Home loan, Medical Urgency, Marriage or in a Special Cases


Latest Update

8.5% rate of interest is applicable to the EPF contribution for FY 2020-21

2021 Union Budget Update: In case the PF contribution of the employees was deducted but the employer did not deposit it to the EPF contribution, then the amount will not be allowed as a deduction for the employer. 

PF Withdrawl Rules 2022 -

Introduction of EPF (Employee Provident Fund)

EPF (Employee Provident Fund) is a fund reserved by structured organizations as retirement security for their employees with the support of a reputed institution known as Employee Provident Fund Organisation (EPFO). According to an annual report presented by Statista, the value of assets under management in EPF in India from 2011-18 was around 9.86 trillion INR, and around 11 million people joined the EPF scheme in the financial year 2020. Such massive figures make EPFO one of the largest social security organizations throughout the globe.

People who are enrolled in this scheme know that the monetary contribution towards EPF is a small part of the employee’s monthly salary (excluding allowances & variable income) and both- employer & employee shares the responsibility of depositing money to avail its benefits in the future. The prime reason why employees desire to enroll in this scheme is due to a higher rate of interest without any risk of the market. Moreover, an associated employee can withdraw a partial amount to beat the crisis. But some PF withdrawal rules need to be followed before claiming PF.

New EPF Withdrawal Rules - When can we withdraw PF?

The following are the events on which the deposited amount can be withdrawn:

  • After taking a formal retirement from the organization (at or after 58 years of age)
  • In case of death of the employee before announcing retirement
  • In the case of unemployment of 60 days and more

EPF advance withdrawal conditions:

  • Special events mentioned in Para 68H of the EPF scheme like fetching out an advance in 2020 due to pausing of the organizational operations in the pandemic
  • Heavy losses due to abnormal conditions like a property damage due to natural disaster
  • The employee affected by an electrical cut (as mentioned in Para 68M)
  • Investment in Varishtha Pension Bima Yojana

PF Advance Withdrawal Rules - A Detailed Report According to Purpose

In case of death, retirement, or 2 months’ unemployment, the employee can withdraw the entire amount in one single shot. But in case of withdrawal before this period, only a portion of the entire deposited amount can be withdrawn in the form of an advance. The amount of this advance totally depends on the purpose and thus we will be discussing the PF advance withdrawal rules.

Purchase or construction of the house

Anyone can withdraw 90% of the current PF balance on the purchase or construction of the house only after serving that organization for 5 years.

Home loan repayment or renovation

  • People who are seeking help for the repayment of home loans can also withdraw 90% of the PF balance after being employed for 3 years in the same organization.
  • In case of renovation, the maximum limit for advance withdrawal is 12X of your monthly salary and will be legit after 5 years of construction of the house.

Marriage of kids/siblings/self or higher education of the child

In this case, the employee can only apply to withdraw 50% of the EPF balance and the employee must have served for at least 84 months in the organization.

Medical urgency due to illness, accident, or natural calamity

One can withdraw up to 6 months of the basic salary without any constraint of minimum service tenure.

One year before retirement

Around 90% of the EPF balance can be withdrawn only if the employee’s age is above 54 years.

Unemployment of one month

Around 75% of the PF can be withdrawn and the rest can be withdrawn after the unemployment of more than 60 days.

PF Withdrawal Rules Considering All Aspects

General Rules

  • The purpose of EPF is to invest some money for the retirement of the employee and hence it is suggested to avoid advance withdrawal.
  • EPF withdrawal before 5 years of service is taxable which means you may experience a cut on the credited amount.
  • Now you don’t need to open a new EPF account on joining a new organization as you can transfer the EPF balance to the previous account. This will save paperwork and keep your PF account active in a continuous series. But the withdrawal can’t be possible for the balance contributed by the current employer (until minimum service tenure criteria are fulfilled)

Before 5 Years of Service

  • Anyone can withdraw his EPF before 5 years of service tenure, but the PF balance of Rs. 50,000 & above will get TDS deduction
  • Under this PF withdrawal condition, the employee needs to present the detailed summary of the PF deposits as per the latest ITR forms 2 & 3. Your EPF deposits will comprise the employee’s share, employer’s contribution toward EPF, and the interest earned on each deposit (that may be around 8% per annum).
  • After revaluation of the EPF withdrawal application, the ITO department will imply taxes (if eligible). For tax exemption, claim exemption as per Section 80-C, otherwise, no tax benefits will be attained.

After Retirement

  • One must claim for final settlement after retirement. Also, one can get an additional benefit of the EPS amount if he has diligently served for more than 10 years in the current organization. He can withdraw the entire EPS amount along with the EPF balance.
  • Get additional monetary reward in the form of a pension is offered to retired employees who completed their 10 years of service in the current organization.
  • Withdrawal of EPF corpus is tax-free, but the interest earned on it is taxable.
  • If the PF balance is not withdrawn for the next 3 years after retirement, then the interest earned on it will be taxable.

For Marriage or Higher Education

  • Only 50% of the PF amount can be withdrawn for child higher education (after matriculation) or marriage of a family member who is financially dependent on you like younger siblings or children.
  • The privilege of this benefit can be availed 3 times in a lifetime.
  • A formal document or certificate with course details and expenditure (in case of education) or member declaration in form 31 will be required for withdrawal.

For Home Loans

  • Registered EPF members can get financial support in the form of PF advance after 3 years of service. As per Para 68-BD of the EPF scheme (1952), the maximum limit of the advance amount is 90% of the corpus and can be used for the repayment of a home loan or as a down payment while taking a home loan.
  • The minimum PF balance should be more than Rs. 20,000, individually or after summing the PF balance of the spouse.
  • The benefits of the PF withdrawal policy for this purpose can only be attained once in a lifetime. It is also valid for houses financed through Pradhan Mantri Awas Yojana (PMAY) on subsidized costs.
  • To avail home loan on EPF, one must need to fulfill the following criteria
    • Should be a member of housing society that has 10 or more members
    • Should have Commissioner’s certificate of PF contributions & composite claim form

In Special Cases

  • Lockdown for more than 15 days / not receiving a salary for more than 2 months:
    • One can withdraw an employee’s contribution & interest earned on it from the PF account.
    • Need to submit a certificate Form A & B
  • Dismissal of the member who is challenged by him in court:  
    • Around 50% of employee share & its interest can be withdrawn.
    • A copy of the petition & written documents from member proving the status of the case as “pending” are the documents required

For Medical Treatment

  • Anyone can withdraw PF in advance for medical treatment (self/family member). The maximum limit is 6X of monthly income with DA or employee share with interest (whichever is lesser).
  • Submit certificate C which is duly signed by your doctor in charge & employer for EPF withdrawal

How to Withdraw EPF?(The simplest option)

You can proceed with your PF withdrawal application by visiting the EPFO office or through online mode. For convenience and faster processing, an online application is suggested.

Link UAN with UIDAI

The foremost step is to link your Universal Account Number (UAN) with Aadhaar card’s number on member e-Sewa portal by clicking on

Login into the EPFO portal

After linking the UAN, you need to login into the portal with credentials. You can also view the detailed description of each deposit in your passbook after logging in. You can also check if all the details provided are verified and right by clicking on the “Manage” option.

Fill the form

Click on the “Online services” option and then select “Claim (form-31,19 & 10C)” option. Proceed ahead and select options according to your purpose. You will get the option to upload and submit your documents with the application. After you complete all the prompted formalities, your application goes under process. Wait for a few working days, and the amount will be credited to your bank account.

FAQ's on PF Wthdrawl Rule 2022

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