written by | April 26, 2022

EPF Withdrawal Rules: For Home Loan, Medical, Retirement

Employees' Provident Fund (EPF) is a long-term investment group made up of contributions from employees, employers and the government (in some cases). The Employees' Provident Fund Organisation (EPFO) is a governmental organisation that administers a social security program to provide a safety net for people when they retire. When an employee retires, the money invested throughout the years, along with stipulated interest, is paid out to them under the EPF withdrawal rules 2021.

Did you know?

Based on the new rule EPFO allows withdrawal of 75% of the EPF corpus after one month of unemployment.

What Are the PF Pension Withdrawal Rules?

Employees' Provident Funds are retrievable in one of the following situations:

  • At the time of retirement (at or after the age of 58) 
  • If an individual is jobless for two months 
  • Death before the age of retirement

Note: EPFO members can readily use their PF money to deal with financial difficulties caused by the Covid-19 epidemic, according to the most recent EPFO rules. PF account holders can now make online withdrawals of up to 75% of their PF account's net balance or three months' basic income or dearness allowance, whichever is less. This is a one-time, non-refundable fee. The EPFO must resolve online claims within 72 hours. However, offline claims might take up to 20 days to resolve.

However, you should take care of several EPF withdrawal rules to withdraw money from the PF account.

Also Read: Guide to EPFO KYC Process

EPF Withdrawals- All you Need to Know




Medical emergencies for family members, spouses, parents and children

Any PF member

One-half of the employee's portion plus interest or six times the monthly wage

For construction/purchase of a new house

The employee must have served 5 years

90% of the PF balance

Renovation of house

Within 5 years from the date of the house's construction, it is possible to withdraw the loan.

12 times the employee’s monthly salary

Repayment of home loan

The employee must have served for min 3 years

90% of the PF balance

Wedding of member/sibling/children

The employee must have served for min 7 years

50% of employee’s share plus interest

Eligibility of Various Types of EPF Withdrawals

For Medical Treatment

  • An employee may withdraw their part of the provident fund, plus interest or six times their monthly pay (whichever is less) for medical care.
  • You can use this PF amount withdrawal for medical care for yourself, your spouse, young kids and parents.
  • There is no mandatory minimum duration or lock-in period for this withdrawal.

For Repaying Home Loans

  • If the property is listed in their surname or held jointly, the PF member is authorised to withdraw up to 90% of the corpus to repay the outstanding home loan.
  • However, you must have completed at least three years of service to take the money.

For a Wedding

  • To be qualified for the withdrawal, an employee must complete at least seven years of service, and it is possible to withdraw.
  • An employee can withdraw 50% of the employee's contribution plus interest.
  • An employee can take money out for their own, siblings' or child's weddings.

To Renovate and Rebuild a House

  • The employee can take money out of his EPF account for renovations and rebuilding. 
  • The residence must be on their own or collectively with their spouse.
  • The employee must have served for a total of at least five years.
  • A participant's Provident Fund account allows him to withdraw 12 times his monthly income.

For Buying a New House

  • A PF member can take a partial withdrawal from their employee provident fund to purchase and develop a plot, but it should be as per the partial withdrawal rules.
  • The house is listed in their name or jointly with their spouse's name.
  • An employee should have a total service history of at least five years.
  • The estate's price or the cumulative of the employee's and his employer's share plus the interest amount (whichever is less) an employee can withdraw 24 times the monthly salary. 
  • For purchasing a plot/36 times the monthly income for acquiring or establishing a house or the cost of the property or the total of the employee's and his employer's share plus the interest amount (whichever is less).
  • Withdrawal is only possible after five years of service.


  • After reaching 58, an individual can receive their whole provident fund corpus.
  • An employee may take up to 90% of their provident fund balance.


  • If someone is jobless for more than a month, they might take 75% of their provident fund.
  • The remainder, 25% of the corpus, might be removed if you have been unemployed for more than two months.

EPF Withdrawal Rules

Employees' Provident Fund (EPF) is a retirement-oriented investing plan, and one should avoid withdrawal unless necessary. If a member wishes to withdraw money from his EPF account, he must adhere to the following EPF withdrawal rules:

  • PF Amount withdrawal made within five years after account inception is taxable.
  • You don't have to withdraw your provident fund when you change jobs since you can effortlessly transfer it to a new account using an online approach.
  • According to the rules, you cannot take the balance of your Provident Fund from a job where you are currently employed.
  • Employee provident fund loans (partial withdrawal) are available.

In 2016, the Indian government implemented certain changes to the employee's pension scheme in response to earlier PF amount withdrawal by employees. The following are the major changes to the EPF withdrawal rules:

  • After the age of 54, an employee can withdraw 90% of the EPF balance.
  • A person can take 75% of his provident fund balance after quitting a job if he remains jobless for one month and the remaining 25% after the second month of unemployment.

EPF Withdrawal Before 5 Years of Service

TDS is applied to PF amount withdrawals made before five years of continuous service, and the government cannot deduct TDS if the transaction amount is less than ₹50,000. If you wish to take money out of your EPF account before you've worked for five years, remember the following EPF withdrawal rules in mind:

  • According to the most recent changes to ITR Forms 2 and 3, the assessee must submit a thorough breakdown of the total amount deposited in the PF account each year.
  • This will aid the Income Tax Department in determining whether your withdrawal is taxable.
  • The administration will also investigate to see if you owe any more taxes due to the revaluation.
  • There are four elements to the EPF contribution: employee contribution, employer contribution and interest on each deposit.
  • If the employee obtained Section 80-C exemption on EPF contributions in past years, the employee would have to pay tax on all four components.
  • If the employee did not seek an EPF exemption the preceding year, the employee's contribution portion would be tax-free when withdrawn.
  • The employee's income bracket for the year will determine the tax rate. 
  • The tax will be applied in the year of withdrawal, but each year will be considered separately.

Withdrawal After Retirement

  • According to the EPF Act, whenever a participant retires at the age of 58, he must file for his final settlement claim.
  • The overall PF balance includes both the employee and employer contributions.
  • If the member has served for more than ten years in continuous service, he is also qualified for the EPS amount.
  • If the person has still not finished ten years of service by the time he retires, he can take the entire EPS sum and his EPF.
  • After completing ten years of public service, the employee is eligible for pension benefits.
  • The corpus accumulated in an EPF account is tax-free when withdrawn after retirement.
  • After retirement, the interest generated on the EPF corpus is taxable.
  • An individual who now has enrolled with the EPF member site can fill out the form and submit it online to claim his funds.
  • The member will have to pay tax on the interest gained if he does not take assets for three years of retirement.

Also Read: Everything You Need to Know about EPF Challan

PF Withdrawal for Home Loans

Within three years of account establishment, EPF members can use the funds collected in their accounts to help them with housing requirements. EPF members can ask for a pf amount withdrawal of up to 90% of their accumulated corpus to make a down payment on a property, pay EMIs or build a new house, according to the recently inserted Para 68-BD in the EPF Scheme, 1952.

Previously, the highest payout amount was restricted to the individual's and employer's combined contributions, plus 36 months' interest or the building's cost, whichever was lower. It was also unnecessary for the member to participate in the house plan to use this service, and he just needed to be an EPF member for five years.

Members now have greater possibilities to use their money thanks to the addition of Para 68-BD to the EPF Scheme, 1952. The three-year time limit (from account opening) has also been decreased. The member's minimal PF balance should be greater than ₹20,000, either separately or combined with that of their spouse if they were an EPFO participant. However, a person can only use their PF balance to purchase a house once in their lifespan.

The following are some key elements of EPF home loans:

  • The nominee must be a legally recognised housing society member with at least ten members.
  • The bank can compute EMIs for withdrawals using the Chairman's certificate of PF contributions.
  • Composite reimbursement forms may be employed to take advantage of this service.
  • The member must obtain a letter of authorisation from the PF to pay the EMI.
  • You can use the Pradhan Mantri Awas Yojana (PMAY) facility to receive housing subsidies.

How to Apply for Home Loans on EPF?

To use your EPF to settle your house loan, follow these easy procedures, modified to reflect the new EPF withdrawal rules:

  • A PF member can request a loan from the EPF Commissioner through the housing society in the format indicated in Annexure 1 in the format prescribed in Annexure 1.
  • The Commissioner delivers a certificate detailing the last three months' monthly contribution.
  • PF members may also obtain a copy of their EPF passbook printed, which will indicate their contributions for the previous three months.
  • EPFO pays the price to the organisation automatically (government or private).
  • Members have the option of withdrawing a lump payment or paying in EMIs.


Given the ability to transfer one's EPF account using a UAN number and the ability to receive interest on the balance fund for up to three years without contributing, the Employee's Provident Fund was already an exciting savings program. To take benefit from this, you must be able to know all about the EPF withdrawal rules 2021, clearly explained in this article for your reference.

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Q: What are the changes in the provident fund withdrawals rules?


The following are the major changes to the EPF withdrawal rules: If a person remains unemployed for one month after quitting a job, he can take 75% of his provident fund balance and the remaining 25%after the second month. TDS is applied to PF amount withdrawals made before five years of continuous service.

Q: Is it possible to claim EPF without using the EPFO Portal?


You can get your EPF money without going via the EPFO Portal. You'll need to obtain a Composite Claim Form, fill it out correctly, and send it in to do so offline.

Q: What is the current interest rate on the EPF as per epf withdrawal rules 2021?


The EPFO gave its members an 8.5% interest rate for the fiscal year 2020-21. Meanwhile, for FY 21-22, the interest rate on EPF deposits has been lowered to 8.1%, the lowest in over four decades.

Q: Is it necessary to consult our employer before PF amount withdrawal?


You do not need to ask or notify your employer unless you withdraw your PF balance online. Previously, you had to obtain your employer's signature on Form 19.

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