The Employee Provident Fund Organisation (EPFO) has in a post on social media explained the new rules for EPF advances for subscribers, including withdrawal limits, frequency and more.
“Smart guide on new rules on . Know all about withdrawal frequency limits and make informed decisions,” it stated in a post this week on X (formerly known as Twitter). According to the detailed guide, the new rules state that up to 75% of EPF balance (employees and employers share with interest), can be withdrawn after completion of 12 months of EPF membership.
Check here: New rules on EPF advances
There are three types of withdrawal 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:
| New Rules on EPF Advances | |
|---|---|
| Category I: Essential Needs | |
| Illness (self and family) | No limit |
| Education (self and family) | Up to 10 times during membership |
| Marriage (self and family) | Up to 5 times during membership |
| Category II: Housing related needs | |
| Purchase of house / flat / site | Up to 5 times during membership |
| Construction of house | Up to 5 times during membership |
| Repayment of home loan | Up to 5 times during membership |
| Renovation / alteration / improvement | Up to 5 times during membership |
| Category III: Special circumstances | |
| Special circumstances as notified by the Central Board, EPF | Up to 2 times in a financial year |
EPF withdrawal rules: Key highlights
- Notably, 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 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 .
- The partial provident fund advance 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 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 (inclusive of employee share, employer share, and interest earned).
- However, 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 . 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 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 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.