EPF i.e. Employees Provident Fund is considered as the most reliable savings for employed people. Now there is relief news for EPF account holders in 202526. The Employees’ Provident Fund Organization (EPFO) has made withdrawal rules simpler and clearer than ever, making it easier for people to understand when and under what circumstances they can withdraw their money. Its purpose is to provide help in times of need by protecting retirement savings.
Now withdraw into three major categories
Earlier, EPF withdrawal rules were divided into 13 categories, which caused a lot of confusion to employees. Now the rules are divided into only three major categories, essential needs, household related needs and special circumstances. This has not only made it easier to withdraw funds, but also made the online claim process easier.
When can you withdraw full EPF money?
You can withdraw your entire money from EPF under certain circumstances, like after age 58 or on voluntary retirement, in case of disability or inability to work, apart from this you can withdraw 75% immediately after unemployment and the remaining 25% after 12 months. You can withdraw even if you are settled abroad.
Partial Withdrawal: How much amount can be withdrawn
You can also withdraw your money from EPFO for some special needs. For example, after 5 years of service, you can withdraw money to buy, build or renovate a house. After 10 years of service, you can withdraw up to 90% to repay the home loan. For renewal, you can withdraw 12 times of monthly salary or PF contribution whichever is less. This feature can be used twice.
For medical, marriage and education
You can withdraw money anytime for treatment of yourself, spouse, parents or children. There is no minimum service requirement. After 7 years of service, you can withdraw 50% of the total contribution for marriage of you or your children/siblings. Apart from this, after 7 years of service, you can withdraw up to 50% of the total contribution for children’s education (after class 10).
Before retirement or in emergency situations
You can withdraw 90% of your money at age 54 or one year before retirement. A small amount can be withdrawn in case of calamities like flood, earthquake or non-payment of salary for more than two months.
What are the tax rules?
It is very important to understand the tax rules while withdrawing money from EPF. If an employee has worked continuously for five years or more, the money withdrawn from EPF is completely tax free. But TDS can be deducted if the money is withdrawn before five years.