The Provident Fund (PF) is one of the most important social security benefits for salaried employees in India. While PF is primarily meant for long-term retirement savings, the law allows partial and full withdrawals under specific conditions. Understanding how Provident Fund withdrawal rules in India work, when, and how much you can withdraw helps you make informed financial decisions, without risking compliance issues or tax surprises.
What Is Provident Fund (PF)?
Provident Fund is a mandatory retirement savings scheme where both the employee and employer contribute a fixed percentage of the employee’s salary every month.
The most common scheme is the Employees’ Provident Fund (EPF), managed by the Employees’ Provident Fund Organisation (EPFO).
Key Law Governing PF Withdrawal
Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
This Act governs:
- EPF contributions
- Withdrawals
- Interest
- Employee rights and protections
PF withdrawal rules are further detailed in EPF Scheme, 1952 framed under this Act.
Types of PF Withdrawals
Full PF Withdrawal
You can withdraw the entire PF balance when:
- You retire (at or after 58 years), or
- You are unemployed for 2 months or more
Full withdrawal is not allowed while you are employed.
Partial PF Withdrawal (Advance)
Partial withdrawals are allowed for specific needs, without closing the PF account.
Common permitted reasons include:
- Medical treatment
- Purchase or construction of a house
- Home loan repayment
- Marriage or education
- Natural calamities
- Pre-retirement needs (after age 54)
These withdrawals are non-refundable and subject to limits.
PF Withdrawal for Unemployment
If unemployed:
- After 1 month: Up to 75% of PF balance can be withdrawn
- After 2 months: Remaining 25% can be withdrawn
Applicable only if you are not employed anywhere else.
Taxation on PF Withdrawal
PF Withdrawal Is Tax-Free If:
- You have completed 5 years of continuous service
(including service with previous employers)
PF Withdrawal Is Taxable If:
- Withdrawn before completing 5 years (with some exceptions)
- Employer’s contribution and interest may be taxed
- TDS may apply if withdrawal exceeds ₹50,000
PAN submission helps avoid higher TDS.
Documents Required for PF Withdrawal
- Universal Account Number (UAN)
- Aadhaar-linked UAN
- PAN (for tax purposes)
- Bank account linked with UAN
How to Apply for PF Withdrawal
Online Method (Preferred)
Through the EPFO Member Portal using UAN:
- Claim Form 19 – Full PF withdrawal
- Claim Form 31 – Partial withdrawal
- Claim Form 10C – Pension benefits (EPS)
Offline Method
Submission through employer (less common now)
Frequently Asked Questions (FAQs)
Q: Can I withdraw PF while still working?
No, full withdrawal is not allowed while employed.
Only partial withdrawals are permitted for specific purposes.
Q: Is employer approval required?
If your UAN is Aadhaar-linked and KYC-compliant, employer approval is not required for online claims.
Q: Can I withdraw PF multiple times?
Yes, partial withdrawals can be made multiple times, subject to:
- Purpose
- Service period
- Prescribed limits
Q: What happens to PF if I change jobs?
Your PF account does not close.
You should transfer the PF to the new employer using the same UAN.
Q: Is PF withdrawal mandatory after resignation?
No. PF can remain in your account and continue earning interest for up to 3 years after unemployment.
Q: What about pension (EPS) withdrawal?
- EPS can be withdrawn after leaving service before 10 years
- After 10 years, only pension certificate is issued
To learn more about this topic, please check out this resource.
