PF Withdrawal Limit: Subscribers Can Withdraw Up to Rs 1 Lakh

PF withdrawal limit has been raised from Rs 50,000 to Rs 1,00,000. The announced made by the Union Labour Minister Mansukh Mandaviya allowing subscribers to access more funds for personal needs like weddings and medical treatments.

New employees who have not completed six months at their service are now eligible to withdraw funds.

The government also allows certain companies with private retirement schemes to switch to the EPFO for better and stable returns at 8.25% for FY24.

What is PF or EPF?

PF or EPF is a savings cum retirement scheme for employees of an eligible organization.

As per the EPF rules, the employees must contribute 12% of their basic pay every month to this fund. The employer contributes a matching amount to the employee’s PF account.

The amount which is deposited in EPF accounts earns interest on a annual basis.

EPF Withdrawal Rules

• No withdrawal allowed if employed.

• EPF withdrawals within 5 years are taxable, but no TDS if the amount is under ₹50,000.

• Withdrawal up to 75% after 1 month of unemployment, full withdrawal is allowed after 2 months of unemployment or delayed new job start.

• No need to withdraw PF while changing jobs, it can be transferred online.

• Loans against PF are available after a certain service period.

When the EPF amount can be withdrawn?

A person may choose to withdraw EPF amount in a:

Complete Withdrawal Process

EPF can be withdrawn entirely under the following two circumstances

• If an individual’s retires

• If an individual is unemployed for more than 1 month then, he or she can withdraw 75% of the total accumulated amount and can withdraw the rest 25% if his or her unemployement reaches beyond 2 months.

Partial Withdrawal Process

Partial withdrawal can be done under the certain circumstances:

• Medical Purpose
• To Pay for Marriage
• Education
• Purchase of land or construction of house
• Home loan repayment
• Home renovation

Process To Withdraw EPF

• Open EPFO portal and login with UAN and password.

• Click on the tab “Manage” and select KYC to check your KYC details are verified or not.

• Once KYC details are verified, then go to the tab “Online service” and select the option “Claim from the drop down menu.

• Next enter your bank details and click on “verify”.

• Click on “Yes’ to sign the certificate of the undertaking and then “proceed for online claim”.

• In claim form, select the claim you require whether full or partial. If the member is not eligible for any services like PF withdrawal or pension withdrawal due to service criteria, that option will be shown in the drop down menu.

• Then select PF withdrawal (Form 19) or Pension withdrawal (Form 10C) to withdraw your PF amount and provide the amount and purpose of such advance.

• After providing the amount and purpose you have to enter the OTP and click on “validate” and then click on the certificate and submit the application.

FAQs