The short answer
While you are working, you can withdraw up to 75% of your PF balance after 12 months of membership, for illness, education, marriage, housing or special circumstances. At least 25% must stay in. If you lose your job, 75% is available at once and the rest after 12 months. Claims up to ₹5 lakh are settled automatically.
What changed, at a glance
EPFO's board approved a simpler set of withdrawal rules in October 2025, and they now sit in the EPF Scheme, 2026, which replaced the 1952 scheme on 29 June 2026. The direction is clear: easier access while you work, but a protected core that stays invested for retirement.
| Rule | Before | Now |
|---|---|---|
| Reasons you can withdraw for | 13 separate categories | 3 categories |
| Service needed for a partial withdrawal | Up to 7 years, depending on the purpose | 12 months for all |
| How much you can take while working | A set limit for each purpose | Up to the full eligible balance, keeping 25% in the account |
| Education and marriage withdrawals | 3 times in all | 10 times for education, 5 for marriage |
| Full PF withdrawal after leaving a job | After 2 months without work | 75% at once, the rest after 12 months |
| Pension (EPS) withdrawal after leaving a job | After 2 months | After 36 months |
| Automatic claim settlement | Up to ₹1 lakh | Up to ₹5 lakh |
Your PF contribution went up too
From 17 September 2026 the EPF wage ceiling rose from ₹15,000 to ₹25,000 a month, the first change since 2014. Employees earning up to ₹25,000 must now be in PF, and where your PF is worked out on the ceiling, both you and your employer contribute 12% of a larger amount. Take-home pay dips a little and the balance you can later withdraw grows faster.
| Monthly basic | Your PF before | Your PF now | Extra each month | Employer pension (EPS) now |
|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹1,800 | ₹0 | ₹1,250 |
| ₹20,000 | ₹1,800 | ₹2,400 | ₹600 | ₹1,666 |
| ₹25,000 | ₹1,800 | ₹3,000 | ₹1,200 | ₹2,083 |
| ₹40,000 | ₹1,800 | ₹3,000 | ₹1,200 | ₹2,083 |
The figures assume PF is calculated on wages up to the ceiling, which is the usual practice; if your employer already calculates it on your full basic, nothing changes for you. The employer's pension share now goes up to ₹2,083 a month, and a notification of 25 September 2026 enrols existing PF members earning up to ₹25,000 in the pension scheme automatically.
How much you can withdraw while you are working
Once you have 12 months of membership, you can withdraw from both your own contributions and your employer's share, with the interest on them. The one firm rule is that at least 25% of your balance has to stay in the account. In practice, the most you can take out at any time is 75% of your PF balance.
| PF balance | Most you can withdraw | Must stay in the account | Settled automatically? |
|---|---|---|---|
| ₹50,000 | ₹37,500 | ₹12,500 | Yes, usually in about 3 working days |
| ₹1,00,000 | ₹75,000 | ₹25,000 | Yes, usually in about 3 working days |
| ₹2,50,000 | ₹1,87,500 | ₹62,500 | Yes, usually in about 3 working days |
| ₹5,00,000 | ₹3,75,000 | ₹1,25,000 | Yes, usually in about 3 working days |
| ₹10,00,000 | ₹7,50,000 | ₹2,50,000 | Yes, for claims up to ₹5 lakh |
| ₹20,00,000 | ₹15,00,000 | ₹5,00,000 | Yes, for claims up to ₹5 lakh |
Your pension (EPS) contributions are not part of this. They sit in a separate pool that builds your pension and cannot be withdrawn while you are working.
The three reasons you can withdraw for
The old list of thirteen purposes has been folded into three, each with simpler paperwork:
| Category | Covers | How often |
|---|---|---|
| Essential needs | Illness of yourself or family, education, marriage | Education up to 10 times, marriage up to 5 times |
| Housing | Buying or building a home, repaying a home loan, repairs | As the scheme allows for each purpose |
| Special circumstances | Situations such as natural calamities or the closure of your workplace | As notified |
A worked example
Take an employee who joined at 27 on a basic salary of ₹30,000 a month, with the usual 12% from both sides and a 6% raise each year. After four years, at the current rate of 8.25%, the PF balance is about ₹2,74,000.
- The most they can withdraw for a home down payment or a medical bill is ₹2,05,500, and ₹68,500 stays invested.
- That claim is within the automatic settlement limit, so it is usually paid in about three working days.
- Left untouched, the same balance keeps earning 8.25% tax-free, which is why withdrawing only what you need is the better habit.
If you lose your job
The rules for people between jobs changed the most. You can take out 75% of your PF balance straight away. The rest can be withdrawn only after 12 months without work, and your pension (EPS) amount only after 36 months. Before the reform, both were available after two months.
| If your PF balance is | Available immediately | After 12 months unemployed |
|---|---|---|
| ₹2,00,000 | ₹1,50,000 | ₹2,00,000 |
| ₹5,00,000 | ₹3,75,000 | ₹5,00,000 |
| ₹10,00,000 | ₹7,50,000 | ₹10,00,000 |
The longer wait for the pension amount is deliberate. Pension benefits depend on years of service, and keeping the EPS account open lets your service from this job count once you join a new employer.
Tax on PF withdrawals
- Partial withdrawals while you are working for the purposes above are not taxed.
- Final withdrawals after five years of continuous service, counting service with earlier employers whose PF was transferred, are tax-free.
- Final withdrawals before five years are taxable. EPFO deducts TDS of 10% when the amount is ₹50,000 or more and your PAN is on record, and more if it is not. Submitting Form 15G or 15H, or its replacement under the new tax law, can avoid TDS if your total income is below the taxable limit.
How to apply online
- Activate your UAN on the EPFO member portal and make sure your Aadhaar, PAN and bank account are linked and verified.
- Log in to the member portal or the UMANG app and open Online Services, then Claim.
- Verify your bank account, choose the purpose, and enter the amount (no more than the limit shown).
- Submit with the Aadhaar OTP. Track the claim status in the portal; claims within the automatic limit are usually paid in about three working days.
EPFO has tested withdrawals through UPI apps and an ATM card as part of its EPFO 3.0 upgrade. Reports suggest a launch around December 2026, but it is not live yet. Until EPFO announces it, the member portal and UMANG remain the official routes, and no agent or app can withdraw your PF for you.
Common mistakes to avoid
- Withdrawing everything when you change jobs. It resets your service for the pension and can make the withdrawal taxable.
- Mismatched details. A different name or date of birth in Aadhaar, PAN and your EPFO record is the most common reason for rejected claims.
- Treating PF as an emergency fund. Keep a separate emergency fund so your PF can do its real job of funding retirement.
- Sharing your UAN password or OTP. EPFO never asks for them by phone or message.
Frequently asked questions
What is the new EPF wage ceiling?
₹25,000 a month from 17 September 2026, up from ₹15,000. Employees earning up to that must be in PF, and contributions are worked out on wages up to the new ceiling.
Can I withdraw 100% of my PF while working?
No. You can withdraw up to the full eligible amount for a permitted purpose, but at least 25% of the balance has to stay in the account, so the practical maximum is 75%.
How many months of service do I need to withdraw PF?
12 months of membership for any partial withdrawal, whatever the purpose.
How much PF can I withdraw after leaving my job?
75% straight away. The rest after 12 months without work, and the pension (EPS) amount after 36 months.
How long does a PF withdrawal take?
Claims up to ₹5 lakh for illness, education, marriage or housing are settled automatically, usually in about three working days. Larger claims are checked manually and take longer.
Can I withdraw PF through UPI or an ATM?
Not yet. EPFO has tested UPI and ATM withdrawals and reports point to a launch around December 2026. Until then, use the EPFO member portal or the UMANG app.
Is PF withdrawal taxable?
Partial withdrawals while working are not taxed. A final withdrawal is tax-free after five years of continuous service; before that it is taxable and TDS applies to amounts of ₹50,000 or more.