Provident Fund Withdrawal Rules (2024)

The employees’ provident fund organization (EPFO) has laid down rules for insured members to withdraw, either in advance or full settlement, the balance from their provident fund (PF) savings account. Insured members can withdraw their PF money for various purposes, emergencies, or finally when they retire at 55 years of age. Hence, there are rules and processes to be followed by PF account holders when they file a claim to transfer/withdraw the fund directly to their bank account linked with the EPFO.

Let’s understand what are PF withdrawal rules laid by the EPFO, forms that are filled to file for a claim, process to avail funds in advance or full amount. Prior to that, the members should check their balance on their PF account, which can be accessed with their unique UAN number, either on EPFO’s online portal or through SMS or a missed call.

Filing For PF Withdrawal: Things To Consider

An insured PF member who is working in an establishment, left the establishment and is not employed, discontinued the job due to physical disability, after retirement at 55 years of age, or the member’s nominee can file for a claim in case of death. However, there can be various reasons for an insured to file for, either an advance or partial amount from the PF balance, or claim for the full settlement. Key things to consider before filing for PF withdrawal include:

• Knowing which claim form to submit and aspects like if the claim forms are available in Hindi and English languages.
• Understanding if the claim is being applied for final PF settlement, or pension withdrawal benefits, or non-refundable advance.
• Linking your Aadhaar with PF will have benefits on processing the claim faster
• Reading instructions carefully before filling up the form.
• Checking if there are any annexures required to be filed along with the form, such as application, authorization document, among others.

What You Need to be Able to File Withdrawal Claim?

A member should give mandatory information including:

• Mobile No.
• Email
• UAN No.
• PF account No.
• Aadhaar No.
• State the purpose of PF withdrawal
• Amount in INR
• Date of leaving service
• Full postal address

Note: Only 90% of total PF balance can be withdrawn before one year of retirement. Also, income tax (TDS) is deducted if the PF account is less than five years old, but not in case the total balance is below INR 50,000. Furthermore, TDS is deducted at 10% if the member submits PAN, and 34.608% TDS is applicable in case PAN is not submitted.

Who Can File For PF Withdrawal?

In most cases, an attestation claim form from the employer will not be required for those members whose Aadhar number and bank account details are available on the UAN portal and UAN has been activated. Let’s understand a few scenarios and steps to consider when filing for PF withdrawal.

Scenario one: Working in an establishment

• Want an advance from my PF account
• Want my LIC policy to be financed through my PF account
  • Form 14
  • A PF member should be member for more than two years
• Want to settle pension fund after 58 years of service
  • Have completed 10 years of eligible service
    • Form 10D
  • Have completed 10 years of eligible service
    • Composite claim form (Aadhar/non-aadhaar)

Scenario two: Have joined another establishment

• Form 13

Scenario three: Have not joined another establishment

• Claim is filed after two months of waiting period is over since leaving the establishment.
• Withdrawal benefit is not permitted if the PF account is less than 10 years to be eligible for the service.
• Form: Composite claim form.
• Form 10D, along with a composite claim form, is applicable for members above 58 who have completed 10 years of eligibility services and apply for the final settlement.

Scenario four: Members who leave the job due to physical disability

• Form 10D, along with composite claim form, is applicable for the member above 58 who has completed 10 years of eligibility services and applies for the final settlement.
• A person can also file the composite claim to avail of withdrawal benefit from PF.

Scenario five: If case of member’s death

• Member died while in service before/after 58 years age should furnish:
  • Nominee, beneficiary, or legal heir of the insured member can file for PF withdrawal.
    • Form 20 for final settlement of PF
    • Form 10D for monthly pension
    • Form 5IF for EDLI insurance amount
• Member had not completed 10 years of eligible service
  • Nominee, beneficiary, or legal heir of the insured member can file for PF withdrawal.
    • Form 20 for final settlement of the PF
    • Composite claim form (Aadhar/non-aadhar)
    • Form 5IF: EDLI insurance amount

Reasons For Filing PF Withdrawal

PF insured members can fill Form 31 to file for an advance or partial amount from their account. A withdrawal claim can be made on half-yearly/yearly/ two to 3 years of the insured basic wages and dearness allowance; total share of the interest; on the amount deposited by employee and employer; or claim in percentage of the amount from 50% and 90% of employee share with interest. EPFO has put in place all necessary guidelines to file for PF advance on its online portal. Here are some reasons PF can be withdrawn in advance and the relevant para of the EPF Scheme 1952, as follows:

• Form 31

Bottom Line

The online mechanism for the insured to access their EPF account’s financial statement, history of transactions and entries, amount deducted per month, share contributed by employers, as well as details of withdrawal set up by the EPFO is a significant step in easing access for the general consumer. Adopting digital means could bring about a change in the way Indians save and withdraw their share of profits at an opportune time.

Dipen Pradhan is a Staff Reporter for Forbes Advisor India. He has more than 10 years of experience in journalism. He covers the personal finance beat. When he is not writing, he enjoys documenting the community's ethnic knowledge, and travels to explore rural hotspots.