As of 2025, the Employees’ Provident Fund Organisation (EPFO) has updated its withdrawal rules to provide members with greater flexibility and faster access to their funds for various needs, including home-related expenses, medical emergencies, and retirement. Here’s a comprehensive overview:
EPF Withdrawal for Home-Related Purposes
1. Purchase or Construction of a New House
- Eligibility: Minimum of 5 years of continuous service.
- Withdrawal Limit: Up to 90% of the EPF balance.
- Conditions:
- The property should be registered in the member’s name or jointly with the spouse.
- This withdrawal is permitted only once during the service tenure.
- Note: As per Para 68B of the EPF Scheme.
2. Repayment of Home Loan
- Eligibility: Minimum of 3 years of service.
- Withdrawal Limit: Up to 90% of the EPF balance.
- Conditions:
- The house must be registered in the member’s name or jointly with the spouse.
- Proof of outstanding loan from the lending institution is required.
- Note: Applicable under Para 68BB of the EPF Scheme.
3. Renovation or Alteration of Existing House
- Eligibility: Minimum of 5 years after the completion of the house.
- Withdrawal Limit: Up to 12 times the member’s monthly wages (basic + dearness allowance) or the employee’s share with interest, whichever is less.
- Conditions:
- The property should be in the member’s name or jointly with the spouse.
- This facility can be availed twice: once after 5 years and again after 10 years from the completion of the house.
- Note: As per Para 68BD of the EPF Scheme.
EPF Withdrawal for Medical Emergencies
- Eligibility: Available to all members, regardless of the length of service.
- Withdrawal Limit: Lesser of 6 times the member’s monthly wages (basic + dearness allowance) or the total employee’s share with interest.
- Applicable for:
- Medical treatment of self, spouse, children, or dependent parents.
- Major surgical operations or hospitalization for more than one month.
- Note: As per Para 68J of the EPF Scheme.
EPF Withdrawal for Retirement
1. Full Withdrawal
- Eligibility: Upon reaching 58 years of age or retirement.
- Withdrawal Limit: 100% of the EPF corpus.
- Note: Final settlement process is now automatically initiated 30 days before the retirement date, removing the need for a separate request.
2. Partial Withdrawal Before Retirement
- Eligibility: After attaining 54 years of age and within one year of retirement/superannuation.
- Withdrawal Limit: Up to 90% of the EPF balance.
- Note: As per Para 68NN of the EPF Scheme.
Additional Key Updates in 2025
- Auto-Settlement Limit Increased: EPFO has raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, significantly enhancing quick financial access for its members during emergencies.
- Digital Withdrawal Process: All withdrawal requests must be submitted via the EPFO Unified Member Portal. The move from paper-based applications to a fully digital system is designed to reduce processing times, eliminate manual errors, and facilitate real-time tracking of claim status.
- Mandatory Aadhaar and PAN Linkage: One of the cornerstone changes is the requirement for every member to have their Aadhaar and PAN linked with the EPFO account. This measure is aimed at minimizing fraudulent activities and ensuring that all transactions are verified through robust identity checks.
Tax Implications
- Tax-Free Withdrawals: EPF withdrawals are tax-exempt if the employee has completed 5 continuous years of service.
- Taxable Withdrawals:
- If withdrawn before 5 years of continuous service, the amount is taxable.
- TDS at 10% is applicable if PAN is provided; otherwise, TDS is 30%.
- No TDS if the withdrawal amount is less than ₹50,000.
Required Documents for Withdrawal
- Aadhaar Card
- PAN Card
- Bank Account Details (linked with UAN)
- UAN Activation
- Form 31 for partial withdrawals
- Form 19 for final settlement
- Form 10C for pension withdrawal
For more detailed information and to initiate withdrawals, members should visit the EPFO Unified Member Portal.
