Short answer: You can take money out of your EPF in two ways. A partial withdrawal (advance) lets you withdraw while still employed for essential needs, housing or special circumstances after 12 months of membership, while keeping at least 25% of contributions in the account. A full withdrawal (final settlement) is allowed on retirement at 55 or later, permanent incapacity, permanent migration abroad, retrenchment or voluntary retirement, or after 12 months without covered employment. These rules come from EPFO’s October 2025 reforms, carried into the EPF Scheme, 2026.
Last updated: 13 October 2026.
What changed since 2023
When this guide was first written, EPF had 13 separate partial-withdrawal provisions, each with its own service requirement (up to seven years) and limit, and a member could claim full settlement two months after leaving a job. The EPFO’s Central Board of Trustees approved a major simplification on 13 October 2025, described in the EPFO press brief on the 238th CBT meeting. A new Employees’ Provident Funds Scheme, 2026 was notified in mid-2026 under the Code on Social Security, 2020, replacing the 1952 Scheme. Always check the latest position on the EPFO website before you apply.
| Rule | Before (1952 Scheme) | Now (after reforms) |
|---|---|---|
| Partial withdrawal categories | 13 separate purposes | 3 categories: essential needs, housing, special circumstances |
| Minimum service | Varied, up to 7 years | 12 months for all partial withdrawals |
| Amount | Varied by purpose; often own share only | Up to 100% of the eligible balance (employee and employer share) |
| Minimum balance | None | 25% of contributions must remain in the account |
| Education and marriage | Combined cap of 3 withdrawals | Education up to 10 times; marriage up to 5 times |
| Reason for special circumstances | Had to be stated and proved | No reason required |
| Full settlement after leaving job | After 2 months of unemployment | After 12 months without covered employment |
| EPS pension withdrawal after leaving job | After 2 months | After 36 months |
Type 1: Partial withdrawal (EPF advance)
A partial withdrawal is money you take out while you remain a member, without closing your account. You do not repay it. Under the reformed rules, partial withdrawals fall into three categories:
- Essential needs: illness (of you or family), education and marriage (yours, or of children or siblings, as allowed).
- Housing needs: buying or building a house, repaying a home loan, or repairs and renovation.
- Special circumstances: situations such as natural calamities, establishment closure or unemployment. Members no longer have to state a reason, which removes a common cause of rejection.
The CBT also said the simpler rules and minimal documentation are meant to allow full auto-settlement of partial withdrawal claims, which should make processing faster.
Worked example: how much can you withdraw?
Neha has been an EPF member for 4 years. Her account shows contributions and interest totalling ₹4,00,000. She needs money for her daughter’s school admission.
| Step | Amount |
|---|---|
| Total contributions in account | ₹4,00,000 |
| Minimum balance to keep (25%) | ₹1,00,000 |
| Eligible balance for withdrawal | ₹3,00,000 |
| Maximum partial withdrawal | Up to ₹3,00,000 |
She can withdraw up to ₹3,00,000, but every rupee taken out stops compounding for retirement. If she withdraws ₹1,00,000 instead, the rest keeps earning EPF interest. The ₹1,00,000 minimum balance stays invested in any case. Treat EPF as your retirement fund and withdraw only what you truly need.
Type 2: Full withdrawal (final settlement)
A final settlement closes your EPF account and pays out the whole balance, including the 25% that is otherwise locked. Situations covered include:
- Retirement at or after age 55.
- Permanent and total incapacity to work.
- Leaving India permanently to settle or work abroad.
- Retrenchment, or voluntary retirement by agreement with the employer.
- Leaving a job and remaining without covered employment for 12 months.
- Death of the member, when the balance is paid to the nominee or legal heirs.
If you change jobs, the better choice is usually to transfer your EPF to the new employer’s account under the same UAN, not withdraw. Transfers keep your service continuous, which matters for tax and pension.
Type 3: EPS pension withdrawal
Your employer’s contribution partly goes into the Employees’ Pension Scheme (EPS). If you leave covered employment before completing 10 years of EPS membership, you may withdraw the pension amount, but under the reformed rules only after 36 months. With 10 or more years of membership, you are generally eligible for a monthly pension from age 58 instead, and a withdrawal benefit is not available. The Labour Ministry’s October 2025 note explains the reasoning: keeping members eligible for pension.
Tax on EPF withdrawals
- Withdrawals after 5 years of continuous service (including service with previous employers if EPF was transferred) are generally tax-free.
- On a final withdrawal before 5 years of continuous service, the amount can be taxable, and EPFO deducts TDS at 10% where the payment is ₹50,000 or more and PAN is provided. Without PAN, a higher rate applies.
- If your total income is below the taxable limit, you may submit Form 15G (or 15H if you are 60 or older) to avoid TDS, where eligible.
- Partial withdrawals (advances) from your own balance are generally not subject to this TDS.
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered sections; the TDS on EPF continues, but confirm current forms and section references on our income tax hub or with a tax adviser.
How to claim online
- Make sure your UAN is activated, and Aadhaar, PAN and bank account are linked and verified in your EPFO profile. See linking EPF with Aadhaar and our Aadhaar hub.
- Log in to the EPFO member portal or the UMANG app with your UAN.
- Choose the online claim option, verify your bank account, and select the type of claim (partial withdrawal, final settlement or pension withdrawal).
- Pick the purpose category for a partial withdrawal and enter the amount.
- Submit with Aadhaar OTP and track the status online.
For a broader overview of your provident fund, see our EPFO hub and our guide to EPF withdrawals in India.
Need money but want to protect your retirement savings? Compare loan offers from RBI-regulated lenders first.
Withdraw or borrow? The money angle
EPF money is cheap to access because you repay nothing, but it carries a hidden cost: lost compounding. ₹1,00,000 left in EPF for 25 years at an assumed 8% a year grows to about ₹6.8 lakh. For short-term needs that you can repay within a year or two, a loan may sometimes protect more of your retirement. For needs like medical emergencies, a partial EPF withdrawal can be the least stressful option. Compare with our guides on medical loans, education loans and home loans before deciding.
Frequently asked questions
How many times can I make a partial EPF withdrawal?
Under the reformed rules, education withdrawals are allowed up to 10 times and marriage withdrawals up to 5 times. Other categories have their own limits; check the EPFO portal for the current position.
Can I withdraw my full EPF balance while still employed?
No. While employed you can make partial withdrawals up to the eligible balance, keeping 25% of contributions in the account. Full settlement is allowed only in the situations listed, such as retirement or permanent migration.
I lost my job. When can I withdraw everything?
Under the reformed rules, full settlement on leaving a job is allowed after 12 months without covered employment. Partial withdrawals under special circumstances may still be available before that.
Is TDS deducted on EPF withdrawal?
On a final settlement before 5 years of continuous service, TDS at 10% applies when the amount is ₹50,000 or more and PAN is given. You may avoid it with Form 15G or 15H if eligible.
Should I withdraw EPF when changing jobs?
Usually not. Transfer it to your new employer under the same UAN to keep service continuous, preserve tax benefits and protect your pension eligibility.
Sources
- EPFO press brief: 238th meeting of CBT (13 October 2025)
- Ministry of Labour & Employment note on EPFO reforms (15 October 2025)
- EPFO official website
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.