EPF withdrawal rules 2026: partial, full, tax and how to apply online
EPF withdrawal rules under the EPF Scheme, 2026: three partial withdrawal heads, the 25% minimum balance, the 12-month wait, TDS and how to claim online.
Ishaan Vardhan13 Oct 2026 · 10 min read
Under the Employees’ Provident Funds Scheme, 2026, you can make a partial EPF withdrawal after 12 months of service under one of three heads (essential needs, housing or special circumstances), but 25% of your contributions must stay in the account. If you lose your job, you can take 75% of the balance at once and the rest after 12 months without work; full withdrawal before five years of service attracts tax and 10% TDS if the payout is ₹50,000 or more.
The Employees’ Provident Fund (EPF) is India’s mandatory retirement savings scheme for salaried workers, run by the Employees’ Provident Fund Organisation (EPFO). Below is what changed, how much you can take out, the tax, and how to claim online.
Key takeaways
- The EPF Scheme, 2026 was published in the Gazette on 29 June 2026 and replaces the 1952 scheme.
- Thirteen partial withdrawal reasons were merged into three, with a uniform 12-month service requirement.
- Premature final settlement now needs 12 months of unemployment (previously two); pension (EPS) withdrawal needs 36 months.
- Withdrawals are tax-free after five years of continuous service; earlier ones face 10% TDS (20% without PAN) on payouts of ₹50,000 or more.
What changed in 2025 and 2026
The changes came in two steps. First, on 13 October 2025, EPFO’s Central Board of Trustees (CBT) approved merging 13 partial withdrawal provisions into one rule with three categories, letting members withdraw up to 100% of the eligible balance including the employer’s share, according to the Press Information Bureau (PIB). The same meeting set aside 25% of contributions as a minimum balance, cut the minimum service for all partial withdrawals to 12 months, and lengthened the wait for premature final settlement from two months to 12 and for pension withdrawal from two months to 36.
Second, on 2 March 2026 the CBT approved a new EPF Scheme, 2026, EPS 2026 and EDLI Scheme 2026 under the Code on Social Security, 2020, PIB reported; it also recommended 8.25% interest for 2025-26. The EPF Scheme, 2026 was published in the Gazette of India on 29 June 2026, The Week reported, and the EPFO member portal now notes that filing nominations is mandatory under it, according to the EPFO member portal.
One caution: EPFO’s own EPF scheme page, marked as last updated on 1 October 2026, still describes full withdrawal after “unemployment (after 2 months)”, according to EPFO’s website. The CBT decisions and the 2026 scheme as reported by Business Standard set 12 months. Check the conditions the claim form shows you at the time you apply.
Partial withdrawal: the three categories
A partial withdrawal (also called an advance) is money you take out while you are still a member, usually while employed. The 2026 framework groups the reasons as follows, according to PIB and Business Standard:
| Category | What it covers | Frequency limits announced |
|---|---|---|
| Essential needs | Illness, education and marriage for yourself or eligible family members | Education up to 10 times and marriage up to 5 times (previously 3 in total for both) |
| Housing needs | Buying a house or flat, buying a plot, construction, repaying a home loan, renovation | Governed by housing-specific conditions |
| Special circumstances | Situations notified by the CBT, such as calamities, closures and unemployment | No reason has to be given under this head, PIB said |
Three rules apply across all three heads:
- Service: at least 12 months, down from as long as seven years for some purposes earlier.
- Amount: up to 100% of the eligible balance, including the employer’s contribution. Before the change, members could withdraw only their own contribution and interest, in a range of 50% to 100%, according to a Ministry of Labour clarification of 15 October 2025.
- Minimum balance: 25% of your contributions stays in the account at all times, earning interest.
The ministry also said simpler rules and no documentation would allow fully automated settlement of partial withdrawal claims. Separately, auto-settlement had already been extended to withdrawals of up to ₹5 lakh without uploading a cheque or passbook, according to PIB’s December 2025 year-end review.
Worked example 1: a housing withdrawal
Kavya has ₹10,00,000 in EPF: ₹8,00,000 of employee and employer contributions and ₹2,00,000 of interest. She wants money for a flat.
- Minimum balance: 25% × ₹8,00,000 of contributions = ₹2,00,000 stays in the account.
- Upper bound on withdrawal: ₹10,00,000 − ₹2,00,000 = ₹8,00,000.
The exact “eligible balance” formula sits in the scheme and EPFO’s claim system, and housing claims have their own conditions, so treat ₹8 lakh as a ceiling. The member portal shows the amount actually available when you file.
Full withdrawal: final settlement rules
Final settlement closes your EPF account. Under the 2026 rules:
- Retirement and other permitted exits: the full balance, including the 25% minimum balance, can be withdrawn on retirement after age 55, permanent disability, incapacity to work, retrenchment, voluntary retirement or leaving India permanently, the Labour Ministry said in its 15 October 2025 clarification.
- Unemployment: 75% of the PF balance (employee and employer contributions plus interest) can be withdrawn immediately and the remaining 25% after one year without work, the same clarification said.
- Changing jobs: you don’t need to withdraw. Transfer the balance to your new employer’s account; PIB’s year-end review says transfers no longer need employer and destination-office approval in most cases.
Worked example 2: after a layoff
Rohan is laid off with ₹4,00,000 in EPF and doesn’t find work straight away.
- Available now: 75% × ₹4,00,000 = ₹3,00,000.
- Available after 12 months of unemployment: ₹4,00,000 − ₹3,00,000 = ₹1,00,000, plus interest earned in the meantime.
If Rohan takes a new job within the year, transferring the remaining ₹1,00,000 keeps his service continuous, which also matters for tax (see below).
The pension part (EPS)
Part of the employer’s contribution goes to the Employees’ Pension Scheme (EPS), not EPF. You need ten years of EPS membership for a pension at 58. Members can withdraw the pension amount only after 36 months out of service (previously two). The ministry said about 75% of pension members withdrew within four years, giving up the pension and the family cover that continues for up to three years after contributions stop.
Is EPF withdrawal taxable?
From 1 April 2026 the rules are in the Income-tax Act, 2025. Paragraph 8 of Part A of Schedule XI exempts the accumulated balance if any one of these applies, according to the Act:
- You rendered five years or more of continuous service; service with earlier employers counts if their balance was transferred into this account.
- Your service ended because of ill health, the contraction or closure of the employer’s business, or another cause beyond your control.
- The balance is transferred to a new employer’s recognised fund, or entirely to your account under the Centre’s notified pension scheme referred to in section 124.
Otherwise, paragraph 9 makes the tax officer recompute tax for each year of membership as if the fund had never been recognised, and you pay the difference in the year of withdrawal. EPFO’s FAQ confirms that service with previous and present employers is added together for the five-year test, according to EPFO.
TDS on EPF withdrawal
- 10% TDS applies when the payment is ₹50,000 or more and the five-year exemption does not apply (section 392(7)).
- Without a valid PAN, section 397(2) requires deduction at the higher of the normal rate and 20%.
- Nil-TDS declaration: if your total income is below the taxable limit, section 393(6) lets you file a self-declaration. EPFO’s FAQ refers to these as Forms 15G and 15H, the names used under the old rules.
Worked example 3: withdrawing after three years
Ankit worked three years at one company and withdraws a ₹3,00,000 final settlement after 12 months of unemployment.
- Five-year test: not met, so the exemption is lost unless an exception applies.
- TDS with PAN: 10% × ₹3,00,000 = ₹30,000.
- TDS without PAN: 20% × ₹3,00,000 = ₹60,000.
The TDS is credit against Ankit’s final tax, not the final figure. His real liability depends on the recomputation for each year, and he can claim back any excess when he files his return.
Worked example 4: interest on large contributions
Even without a withdrawal, Schedule II (Sl. No. 4) of the Act taxes interest each year on contributions made from 1 April 2021 that exceed ₹2,50,000 in a year (₹5,00,000 where the employer doesn’t contribute). Suppose Neha contributes ₹30,000 a month, or ₹3,60,000 a year:
- Excess over the limit: ₹3,60,000 − ₹2,50,000 = ₹1,10,000.
- Approximate taxable interest at 8.25%: ₹1,10,000 × 8.25% = ₹9,075. EPFO credits interest on monthly running balances, so the actual figure will be lower for contributions made later in the year.
How to apply for EPF withdrawal online
Business Standard says members apply on EPFO’s Unified Member Portal using their Universal Account Number (UAN), with Aadhaar, bank account and PAN verified. EPFO’s FAQ says Form 19 (PF final settlement), Form 10C (pension withdrawal) and Form 31 (advance) can be filed without the employer’s signature, provided your UAN is activated and your bank and Aadhaar KYC are approved.
- Activate your UAN. The member portal says activation and new UAN allotment have moved to Aadhaar face authentication in the UMANG app.
- Complete KYC. Link Aadhaar, PAN and a bank account in your name, and get your employer to approve them. Add a nominee, which is now mandatory.
- Check the passbook. Make sure all past employers’ balances are merged into your current UAN before claiming, so the service history is complete for the five-year tax test.
- File the claim. Log in to the member portal, choose the claim type (advance, final settlement or pension withdrawal), pick the purpose and verify with the Aadhaar OTP.
- Track it. If the claim isn’t settled within 20 days, EPFO’s FAQ points you to its grievance portal, EPFiGMS.
Planning a job switch? Our in-hand salary calculator shows how EPF deductions affect take-home pay, and the jobs board lists openings from official careers pages.
Why it matters
The new rules make EPF easier to tap for genuine needs, but harder to drain completely. That trade-off is deliberate: the ministry said half of members had less than ₹20,000 at final settlement and three-quarters less than ₹50,000. For anyone between jobs, the practical change is the 12-month wait for the last 25%, and the bigger financial decision is usually tax. Withdrawing before five years of continuous service costs you the exemption, while transferring the balance keeps both your service history and your interest compounding.
The Code on Social Security also gave older schemes a one-year transition from 21 November 2025, law firm Cyril Amarchand Mangaldas noted, so EPFO’s forms and FAQs may lag the new scheme for a while.
This is general information, not tax or financial advice. Confirm your figures with a chartered accountant (CA) or EPFO before you withdraw.
FAQ
Can I withdraw my full PF balance after resigning?
Not straight away. After leaving, you can take 75% at once and the remaining 25% after 12 months of unemployment. If you join a new employer, transfer the balance instead.
How many times can I withdraw PF?
The October 2025 decisions allow up to 10 education withdrawals and 5 marriage withdrawals during membership. Business Standard reports multiple withdrawals a year are possible depending on the category and your balance.
Is TDS deducted if my withdrawal is under ₹50,000?
No. Section 392(7) applies TDS only to payments of ₹50,000 or more. The amount can still be taxable if you have less than five years of service.
Does service with previous employers count towards five years?
Yes, if the earlier balances were transferred into your current account. EPFO adds previous and present service together.
How long does an EPF claim take?
Many claims up to ₹5 lakh are auto-settled. If yours isn’t settled within 20 days, raise a grievance on EPFiGMS.
Sources
- Press Information Bureau (Ministry of Labour & Employment), “Dr. Mansukh Mandaviya Chairs 238th meeting of Central Board of Trustees (CBT), EPF“, 13 October 2025
- Press Information Bureau (Ministry of Labour & Employment), “Ministry of Labour & Employment emphasizes benefits of EPFO Reforms for Ease of Living for crores of members“, 15 October 2025
- Press Information Bureau (Ministry of Labour & Employment), “Dr. Mansukh Mandaviya Chairs 239th meeting of Central Board of Trustees (CBT), EPF“, 2 March 2026
- Press Information Bureau (Ministry of Labour & Employment), “Year End Review 2025“, 30 December 2025
- The Week, “PF contributions capped, withdrawals simplified: What EPFO Scheme 2026 overhaul means for you“, 2 July 2026
- Business Standard, “EPF withdrawal rules changed? Here's what the new Scheme 2026 means“, 9 July 2026
- EPFO, “EPF Scheme“, last updated 1 October 2026
- EPFO, “FAQ“, accessed 4 October 2026
- EPFO, “Member e-Sewa (Unified Member Portal)“, accessed 4 October 2026
- Gazette of India (Ministry of Law and Justice), “The Income-tax Act, 2025 (No. 30 of 2025)“, 21 August 2025
- Cyril Amarchand Mangaldas, “Implementation of Central Rules under the Labour Codes“, 12 May 2026
Featured image: EPF claims are filed online through the EPFO member portal using your UAN. · Photo: Biswarup Ganguly / Wikimedia Commons, CC BY 3.0
Related stories
Sources
- Press Information Bureau (Ministry of Labour & Employment) 13 Oct 202513 provisions merged into 3 categories; up to 100% of eligible balance; education 10x, marriage 5x; 12 months service; 25% minimum balance; 8.25% interest; final settlement 2→12 months, pension 2→36 months
- Press Information Bureau (Ministry of Labour & Employment) 15 Oct 202575% on unemployment immediately, 25% after one year; full withdrawal on retirement after 55, disability, retrenchment, VRS, leaving India; earlier 50-100% of employee share only; EPS 10 years; 75% withdrew pension in <4 years; balances at settlement
- Press Information Bureau (Ministry of Labour & Employment) 2 Mar 20268.25% recommended for 2025-26; EPF Scheme 2026, EPS 2026 and EDLI 2026 approved under Code on Social Security
- Press Information Bureau (Ministry of Labour & Employment) 30 Dec 2025Auto-settlement up to ₹5 lakh; simplified transfers
- The Week 2 Jul 2026EPF Scheme 2026 published in Gazette on 29 June 2026; three categories; 25% retention
- Business Standard 9 Jul 2026Three categories and what they cover; 25% minimum balance; multiple withdrawals; 12-month unemployment wait for final settlement; apply via Unified Member Portal with UAN and verified KYC
- EPFO 1 Oct 2026EPFO page still states full withdrawal after unemployment of 2 months
- EPFO 4 Oct 2026No TDS after 5 years incl. previous service; Forms 15G/15H; Forms 19, 10C, 31 without employer attestation if UAN and KYC done; 20-day grievance via EPFiGMS
- EPFO 4 Oct 2026Nomination mandatory under EPF Scheme 2026; UAN activation/allotment via UMANG face authentication
- Gazette of India (Ministry of Law and Justice) 21 Aug 2025Schedule XI Part A paras 8-10 (five-year exemption and recomputation); section 392(7) 10% TDS at ₹50,000; section 397(2) 20% without PAN; section 393(6) declaration; Schedule II Sl. No. 4 interest above ₹2.5 lakh/₹5 lakh
- Cyril Amarchand Mangaldas 12 May 2026EPF Scheme 1952 and other schemes continue for one year from 21 Nov 2025 to the extent consistent with SS Code
