Recently The Ministry of Labour and Employment, Government of India, has made a few amendments in the Employees’ Provident Fund Scheme, 1952 for PF Withdrawal Process.

Main Purpose of EPF

As We know that EPFO is a Long-Term Saving Scheme of Government of India after Retirement age. In the EPF Scheme, 12% of the basic pay of a salaried employee is deducted from his or her remuneration on a monthly basis as a contribution towards his/her EPF account.

PF Withdrawal Process

There are two ways to withdraw PF Savings

  • PF Withdrawal Using Universal Account Number (UAN Number)
  • PF withdrawal Directly By Submitting Few Forms at PF Office.

Both the Process are Easy, In the First Process you can use your UAN Number to Withdrawal of PF Savings, and in the Second Method, You need to Fill up Form 19 and Have to Attach some Document to submit at Nearest PF Office.

=>Details Process about PF Withdrawal<=

Employee Provident Fund Contribution Rules

As per EPF Rules, the contribution to the EPF account of an employee is made by both the employee and the employer. The rule is as follow.

  • 12 % of the basic pay (including D.A and other allowances) of an employee is deducted towards contribution to the EPF account of that employee. And the same amount that is 12% of Employee’s salary is also contributed by the employer on a monthly basis.
  • Out of that 12 % from employer’s contribution, 8.33% is deposited to the Employee Pension Scheme (EPS) whereas 3.67% shall be filed to the EPF account of the employee.
  • The rate of interest given by the EPFO, India to the final accumulation on a yearly basis is 8.6% for the financial year of 2016-17.
  • The rate of interest is revised every year and is announced every year by the EPFO India.

Basic EPF Withdrawal Rules

Here are Certain Rules and Regulation for EPF Withdrawal.

  • Note that withdrawal of the EPF account by a salaried employee between switching his or her jobs is illegal.
  • Only in 2 Cases, Employee can Withdrawal their PF Account Money. First If He/She has No jobs for More than 2 Month (Means Unemployed for More than 2 Months) and Second Scenario In the case of some Emergency where He/She wants some Money like for Marriage, Medical Purpose, Loan Purpose, Retirement Purpose, etc.
  • If a salaried employee opts for withdrawal after continuous service of five years or above, there will be no TDS deduction on the amount by the IT Dept.
  • But If the Withdrawal has Made Before the Five-Year Job, then Employee has to Pay Tax and TDS on the Amount.
  • According to new EPF rules announced by the finance minister in the budget for the financial year 2015-16, EPF withdrawal (taxable) will attract TDS deduction at the rate of 10% (If Employee has registered PAN) or up to a maximum of 30% (If Employehasve unregistered PAN).
  • No TDS Will be Deducted if the PF Withdrawal Amount is less than Rs.30,000
  • If an Employee doesn’t submit his/her PAN, TDS will be deducted at 34% on his or her withdrawn amount. If salaried persons want to avoid TDS, they can submit the form no. 15H (For senior citizens) or 15G for an amount up to Rs.3 lakh and Rs.2.5 lakh respectively.

Latest EPF Withdrawal Rules

According to New Information The Ministry of Labour and Employment, Government of India, has made a few amendments in the Employees’ Provident Fund Scheme, 1952 on 10th February 2016. Those Amendments are as follows.

  1. An increase of Retirement Age from 55 to 58.
  2. Employee Can’t Withdraw Full EPF balance before attaining the Retirement Age.
  3. Partial withdrawal of EPF amount on Resignation.
  4. Continuity of EPF membership.
  5. Increase in Age limit to withdraw 90% of PF balance.

Let’s Discuss Each Latest Rules in Details.

  • Retirement Age 
    • Earlier the Retirement Age was 55, but in Latest Amendment it was made 58.
  • Full EPF balance Withdrawal
    • Old Rule says that Employee can Withdraw whole PF Balance if He/She is Unemployed for more than 2 Months.
    • New Rule Says that The EPF members cannot withdraw full PF amount before attaining the age of retirement. You can only withdraw your contributions + interest portion.
  • EPF Membership Continuity
    • Old Rule says that If Employee Withdraw his/her Full OF Balance than his/her Membership or EPF Account will be TERMINATED.
    • New Rule Says that An employee can only withdraw his/her share after leaving the job. An employee cannot withdraw full EPF amount before attaining the retirement age. So, His/Her EPF Account Will not be Liable to Termination.

NOTE: –  In the Case of Early PF Withdrawal the TDS limit is being raised from Rs 30,000 to Rs 50,000. So, TDS is not applicable if the PF withdrawal amount is less than Rs 50,000. This new amendment is applicable with effective from 1st June 2016.

EPF Withdrawal Purpose

  • Marriage
  • Medical Treatment
  • Professional education of children
  • Home Loan Repayment

So, these are the Rules of EPF Withdrawal. Kindly Refer to all the rules and Regulation before you withdraw your PF Savings.

7 thoughts on “Latest PF Withdrawal Rules, Regulation and Guidelines 2017- EPFO Portal”

  1. To whom it may concern,

    I am a non-Indian resident who has lived and worked in India for the last two years. Considering the law and local/Indian contract I was obligated to contribute towards a Provident Fund throughout the last two years. I am now leaving India, moving back to Poland and would like to know how I can withdraw my accumulated PF contribution. Please bear in mind I will never live in India again hence withdrawal is the only feasible option.

    Thanks, looking forward to your response !

    1. YES, if you are shifting to Poland than first withdraw your PF Balance and for that, You have to claim your PF balance by Logging in to your EPF account then provide all the necessary documents and ID Proof. You can get your money.

  2. I resigned my job in 2010. my EPF account started from 2007.if a account not credited for 3 years it will become inoperative account & not eligible for interest also.if now I apply for with drawl I can withdraw my full EPF or partial only.
    I have to pay TDS or not ,if my amount is more than 50000/-

  3. I am a PF member since 15 years and I have been contributing PF regularly. In the year June 2012 company terminated my services arbitrarily for which I have filed the case with competent authority seeking justice. I have been jobless since then and I am doing some odd jibs for my family”s bread and butter. I am in need if money and wish to withdraw my PF amount including company”s contribution.
    Please let me know your replies my queries as under:-
    1) Do I need to obtain signature with seal if the company in Forms for withdrawal?
    2) Will I get full amount or partial
    3) Will there be any Inc. tax deductions
    4) In case if Tax is deductible then can I submit Form H for exemption?

    Please reply at your earliest as I am having severe financial crisis.



    1. Hello IQBAL,
      If you are not doing job form more than 2 months then You are eligible to claim your PF Amount for withdrawal. Second to claim PF money online no need to get employer’s sign. You will get full amount but if it’s very high may be they will deduct some Portion as TDS (For this contact EPF Officials). You can submit form H for exemption in case of Tax deduction.

  4. Dear sir,,,,

    maine EPFO ka docoment 26\08\2017 jama kar diya hu…
    form 10c [withhdrawal benefit/sceme certifited for.
    claim for 19 for pf settlement for mambar…ka massase a gya hai…
    mai pata karna chahta hu…kitne din me paise A/C me a jyege sir….
    please help me sir……

Leave a Reply

Your email address will not be published. Required fields are marked *