EPF withdrawal rules: Know how much you can withdraw

Employees' Provident Fund Organisation

Employees' Provident Fund Organisation (EPFO) has brought a series of reforms in 2025 which will allow salaried employees to withdraw money from their EPF account with ease. Be it retirement, purchasing a house, medical bills or unemployment being the requirement, EPFO has eased full and partial withdrawals compared to earlier times.

One of the biggest transformations is the launch of EPF 3.0, which will be functional from June 2025. Members are able to withdraw as much as Rs 1 lakh directly through ATM and UPI. This is a massive transformation from the earlier, lengthy withdrawal procedure. In addition to this, partial withdrawals ranging up to Rs 5 lakh are now auto-settled in a time frame of 72 hours, EPFO chief executive Amit Ghosh stated. These auto-settled claims are no longer bearing the employer's signature, if employee KYC is up-to-date and Aadhaar is linked with the Universal Account Number (UAN).

Partial and full withdrawal eligibility

For full withdrawal, members can claim on reaching the age of 58 years, or after being continuously unemployed for two months. For two months' unemployment, 75 percent of the EPF corpus can be availed. Full withdrawal is also allowed for employees going abroad permanently.

Partial withdrawals continue to be allowed for specific reasons such as medical treatment, marriage, education, house construction, and home loan repayment. For instance, a seven-year service member can withdraw 50 percent of his contribution towards marriage or education. On medical treatment, a person can withdraw six months basic salary or his contribution plus interest—whichever is smaller—without any minimum service requirement.

Withdrawal policies and KYC requirements

To access these withdrawals, members are required to have their KYC information updated in full. This comprises Aadhaar, PAN, bank account and mobile number linked with their UAN. Claims may be filed either on the EPFO portal or through the UMANG app. For the new instant withdrawal facility, bank accounts linked with UPI will enable members to use their EPF as a liquidity-boosted emergency fund.

Tax implications of premature withdrawal

Taxation-wise, withdrawal of EPF after five years of uninterrupted service is exempt from tax. But in the case of withdrawal within five years, tax deduction at source (TDS) is applicable—10 percent if PAN is submitted and 30 percent if not. No TDS is to be deducted in the case of the aggregate withdrawal being below Rs 50,000.

Quicker resolution and ease online

With 95 percent of claims now automated, EPFO has taken huge leaps in simplification and speed of access. The launch of ATM and UPI-linked withdrawals further adds strength to the government's thrust towards digital ease. These reforms are likely to not only remove financial pressures from members but also position the EPF as a more convenient tool for short-term requirements—without compromising its core function as a long-term savings vehicle.