PF Withdrawal Rules: Nearly 80 million subscribers of the Employees’ Provident Fund Organization (EPFO) will be able to withdraw their PF funds through UPI (Unified Payments Interface). The central government is developing a system that will allow PF members to withdraw their funds directly through UPI.
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The Union Labor Ministry is working on this project, and it is targeted to be rolled out by April 2026. With the introduction of this facility, the lengthy claim settlement process will be eliminated and members will receive funds immediately.
Money will be transferred to your bank account as soon as you enter your UPI PIN.
- According to a PTI report, in the new system, a portion of the EPF fund will be kept ‘frozen’ (safe), while a larger portion will be available to members.
- Members will be able to transfer this money directly to their account using the UPI PIN linked to their bank account.
- Once the money is deposited into the bank account, users can withdraw it from an ATM or use it for digital payments.
EPFO is addressing software glitches.
Currently, to withdraw PF, members must fill out a claim form online or offline, which is time-consuming. Although EPFO has introduced an auto-settlement mode, this also takes at least three days. According to sources, EPFO is currently working to resolve some technical issues with the software. Once these are resolved, 80 million members will receive direct benefits.
75% of PF funds can be withdrawn after one month of job loss.
Under PF withdrawal rules, if a member loses their job, they can withdraw 75% of their PF balance after one month. This allows them to meet their needs during unemployment. The remaining 25% of the PF balance can be withdrawn two months after the job loss.
How much money can be withdrawn from PF fund for which purpose?
| Work | The length of service | How much money can you withdraw? |
| Building/buying a house | The employee must be in continuous service for 5 years. | For home purchase, one can withdraw up to 24 times the monthly salary from the PF fund. For both purchase and construction, one can withdraw up to 36 times the monthly salary. |
| Medical Treatment | No conditions | An amount equal to the employee’s contribution to the EPF account along with interest or 6 times his monthly salary, whichever is less, can be withdrawn. |
| Home Loan Repayment | The employee must have been in continuous service for 3 years. | 90% of the amount can be withdrawn. |
| House Repair | The employee must have been in continuous service for five years from the date of completion of the house construction. | An amount equal to 12 times the monthly salary can be withdrawn. |
| Marriage | Employee must have been in continuous service for 7 years. | Up to 50% of the employee’s contribution, along with interest, can be withdrawn. |
PF Withdrawal Income Tax Rules
If an employee completes five years of service with a company and withdraws his or her PF, he or she is not liable for income tax. The five-year period can be combined with one or more companies. It is not necessary to complete five years with a single company. The total period must be at least five years.
