PF Withdrawal Rules in 2026: What You Can Withdraw, When, and How Much Tax Applies

PF withdrawal rules changed twice in under a year. EPFO's Central Board of Trustees approved simpler rules in October 2025, and on 29 June 2026 the government notified the Employees' Provident Funds Scheme, 2026, which replaced the 1952 Scheme. Most guides online still describe the old paragraphs. This page covers the rules that apply now: how much you can take out while working, when you can withdraw everything after leaving a job, how TDS works if you have less than five years of service, and how to file the claim online. It is written for employees and for MSME owners who handle PF for their staff.

Quick answer

While working, you can withdraw up to 100% of your eligible balance — everything above a compulsory 25% minimum balance — for illness, education, marriage, housing or special circumstances after 12 months of membership. After leaving a job, full withdrawal is allowed only after 12 months without covered employment, unless you retired, were retrenched or are emigrating.

• Rules come from the EPF Scheme, 2026 (G.S.R. 525(E)), in force from 29 June 2026

• Employer contribution and interest now count towards what you can withdraw

• Advance claims up to ₹5 lakh are settled automatically if KYC is complete

• TDS of 10% applies only if service is under 5 years and the payout exceeds ₹50,000

What changed in the PF withdrawal rules

Until 2025, the EPF Scheme, 1952 had 13 separate withdrawal provisions (paragraphs 68B to 68NN), each with its own service requirement — up to seven years for some — and each allowing only part of the employee's own share. Claims were often rejected for picking the wrong purpose.

On 13 October 2025, EPFO's Central Board of Trustees approved a single framework. The Ministry of Labour explained it in a PIB release two days later: 13 provisions merged into three groups, a uniform 12-month eligibility, the employer's share now included, and 25% of contributions kept aside so members still have a corpus at retirement. The release said half of members settling their accounts had less than ₹20,000 left in PF.

These decisions became law when the EPF Scheme, 2026 was published in the Gazette on 29 June 2026. It came into force the same day, with no transition period.

PF withdrawal at a glance (2026)

25%

Minimum balance that stays in the account

EPF Scheme 2026, para 46

12 months

Membership needed for any partial withdrawal

12 months

Unemployment before full withdrawal

para 49(2)

₹5 lakh

Auto-settlement limit for advance claims

Partial withdrawal: the three categories

A partial withdrawal (still called a PF "advance") is money you take out while keeping your PF account open. Under paragraph 46 of the 2026 Scheme, every partial withdrawal must be at least ₹1,000 and must leave the minimum balance in your account.

All five require 12 months of total membership. Membership includes earlier service with the same employer and time in an exempted private PF trust, provided you did not close the account by withdrawing in between (para 47). The frequency counts started again from zero for every member on 29 June 2026, so withdrawals you made under the 1952 Scheme do not count against the new limits.

There is one more route. If you leave a job before completing 12 months of membership, paragraph 46(5) still lets you withdraw up to the eligible balance. That helps someone whose first job ends after eight months.

The 25% minimum balance, with a worked example

The Scheme defines the minimum balance as 25% of all contributions credited to you — employee share, employer share and interest. The eligible member balance is what is left after deducting that 25%. You can withdraw up to 100% of the eligible balance, which works out to roughly 75% of your PF account.

Example 1 — partial withdrawal for a child's education. Anita has been an EPF member for four years. Her passbook shows:

• Employee share with interest: ₹2,10,000
• Employer share with interest: ₹90,000 (the rest of the employer's 12% goes to EPS, not PF)
• Total PF balance: ₹3,00,000

Minimum balance = 25% × ₹3,00,000 = ₹75,000. Eligible balance = ₹2,25,000. She can withdraw up to ₹2,25,000 for her son's college fees. Under the 1952 rules she could have taken at most 50% of her own share — ₹1,05,000. Because her claim is below ₹5 lakh, it qualifies for auto-settlement if her KYC is complete.

Full withdrawal: when you can take out everything

Final settlement closes your PF account. Paragraph 49 of the 2026 Scheme allows the full balance, including the 25% minimum, in these cases:

• Retirement after age 55 (or reaching 55 before the payment is authorised)
• Permanent and total incapacity for work, certified by a medical officer; tuberculosis, leprosy and cancer are treated as incapacity
• Migration from India to settle or take up employment abroad
• Retrenchment, mass or individual
• Voluntary retirement under a VRS agreed between employer and employees
• Closure or transfer to an establishment not covered by the Code, or discharge with retrenchment compensation — paid after a two-month gap

Leaving a job for any other reason

If you simply resign, the rule is stricter than before. You can withdraw the full amount only if you have not been employed in any establishment covered by the Code for a continuous 12 months right before you apply. Under the 1952 Scheme this gap was two months. The waiting period does not apply to women who resign to get married.

Until those 12 months pass, you are not stuck: you can make a partial withdrawal of the eligible balance (about 75%) for any of the purposes above, including the special-circumstances category that covers unemployment. The PIB release described this as 75% immediately and the remaining 25% after one year.

PF withdrawal — 1952 Scheme vs EPF Scheme 2026

Rule	EPF Scheme, 1952	EPF Scheme, 2026 (from 29 June 2026)
Withdrawal purposes	13 separate paragraphs	3 categories: essential needs, housing, special circumstances
Service required	Varied — up to 7 years	12 months for all
Amount	Usually 50–100% of employee share only	100% of eligible balance, including employer share
Minimum balance	None	25% of contributions plus interest
Full withdrawal after resigning	After 2 months unemployed	After 12 months unemployed
Withdrawal close to retirement	90% at age 54 (para 68NN)	Provision dropped
EPS withdrawal benefit	After 2 months	After 36 months

Withdrawal purposes

EPF Scheme, 1952

13 separate paragraphs

EPF Scheme, 2026 (from 29 June 2026)

3 categories: essential needs, housing, special circumstances

Service required

EPF Scheme, 1952

Varied — up to 7 years

EPF Scheme, 2026 (from 29 June 2026)

12 months for all

Amount

EPF Scheme, 1952

Usually 50–100% of employee share only

EPF Scheme, 2026 (from 29 June 2026)

100% of eligible balance, including employer share

Minimum balance

EPF Scheme, 1952

None

EPF Scheme, 2026 (from 29 June 2026)

25% of contributions plus interest

Full withdrawal after resigning

EPF Scheme, 1952

After 2 months unemployed

EPF Scheme, 2026 (from 29 June 2026)

After 12 months unemployed

Withdrawal close to retirement

EPF Scheme, 1952

90% at age 54 (para 68NN)

EPF Scheme, 2026 (from 29 June 2026)

Provision dropped

EPS withdrawal benefit

EPF Scheme, 1952

After 2 months

EPF Scheme, 2026 (from 29 June 2026)

After 36 months

Your pension (EPS) money is separate

Of the employer's 12% contribution, 8.33% (on wages up to the EPS ceiling) goes to the Employees' Pension Scheme, not your PF account. You cannot take it out as a partial withdrawal.

If you leave before 10 years of pension-eligible service, you are entitled to a withdrawal benefit calculated from a table in the Scheme. Under the EPS 2026, you can claim it only 36 months after your last contribution was due, or on reaching superannuation age if that comes first. The Ministry's reasoning: most members cashed out their pension within four years, losing both the 10-year pension and their family's cover if they died. If you will rejoin work, the better option is usually a scheme certificate so your service carries forward.

TDS and tax on PF withdrawal

PF withdrawals are tax-free once you have 5 years of continuous service. Service with earlier employers counts if you transferred the PF balance each time. If you withdraw earlier, the employer's contribution, interest on it and any tax benefit you claimed on your own contribution become taxable in the year of withdrawal.

TDS rules have moved from section 192A of the 1961 Act to section 392(7) of the Income-tax Act, 2025 from 1 April 2026. The substance is unchanged:

• No TDS if service is 5 years or more, or if the payout is ₹50,000 or less.
• No TDS on a transfer to a new employer's PF account, or where employment ended because of ill-health, the employer's business closing, or other reasons beyond your control.
• 10% TDS in other cases if your PAN is linked to your UAN; a much higher rate applies if it is not.
• If your total income is below the taxable limit, submit the no-deduction self-declaration — Forms 15G/15H were replaced by Form 121 under the Income-tax Rules, 2026.

Example 2 — TDS on an early final settlement. Rohit worked three years, resigned, and has been without a job for 12 months. His PF balance is ₹2,40,000. Service is under five years and the payout is above ₹50,000, so EPFO deducts 10%: ₹24,000, and he receives ₹2,16,000. He claims the ₹24,000 as a credit in his return. If his income for the year is below the taxable limit, filing Form 121 first avoids the deduction. Try the numbers with our TDS calculator.

Example 3 — transfer instead. Had Rohit joined a new employer and transferred the balance, there would be no tax, no TDS, and his three years would count towards the five-year rule.

How to withdraw PF online, step by step

Filing a PF withdrawal claim on the EPFO member portal

1. 1

   Check your UAN and KYC

   Log in to the EPFO Member e-Sewa portal with your UAN. Your Aadhaar must be seeded, your bank account (with IFSC) verified, and ideally your PAN linked. Fix gaps under Manage → KYC; your employer approves bank and PAN updates.

   Tip: Claims with incomplete KYC cannot be auto-settled and are a common cause of rejection.

   Open the EPFO member portal
2. 2

   Confirm your service details

   Check that the employer's date of joining and date of exit are correct in your service history. The portal blocks a full withdrawal if no exit date is recorded.

3. 3

   Choose the claim type

   Under Online Services → Claim, pick the PF advance (partial withdrawal, historically Form 31), final PF settlement (Form 19) or pension withdrawal benefit (Form 10C). Select the purpose under the new categories.

4. 4

   Enter the amount and upload what is asked

   Enter an amount within your eligible balance. For special circumstances, the 2026 rules ask for no reason beyond the category. Upload a cheque leaf or passbook image if the portal asks.

5. 5

   Authenticate with Aadhaar OTP

   Submit with the OTP sent to your Aadhaar-linked mobile. Note the claim reference number.

6. 6

   Track and receive the money

   Track the status on the portal or the UMANG app. Auto-settled advances usually reach your bank in about three days; other complete claims must be settled within 20 days.

The 2026 Scheme says claims are filed electronically on the designated portal by default. A paper claim through the employer is the fallback only when online filing fails for technical reasons, and the employer must forward it within five days.

UPI and ATM withdrawals

The Labour Ministry has announced that members will be able to withdraw part of their PF through UPI and dedicated ATM cards under "EPFO 3.0", and said testing was complete in mid-2026. When we checked in October 2026, EPFO had not published a member-wide launch notice. Until it does, use the member portal or UMANG app and treat any website or caller offering "instant PF via UPI" for a fee as a scam.

Common reasons PF claims get rejected

Before you submit a PF claim

0/8

• UAN activated and Aadhaar seeded; name, date of birth and gender match Aadhaar exactly
• Bank account verified with the correct IFSC, in your own name
• PAN linked — avoids higher TDS on early final settlement
• Date of exit updated by your previous employer (needed for final settlement)
• At least 12 months of membership for a partial withdrawal (unless you left before 12 months)
• Amount within the eligible balance — the 25% minimum stays in the account
• Frequency limit not used up for that purpose
• For full withdrawal after resigning: 12 continuous months without covered employment

Share Print

Employers: most rejections trace back to the employer side — a missing exit date, an unapproved KYC request or a name mismatch in the ECR. Approve KYC requests promptly and record exits in the month the employee leaves. Our salary slip generator shows the PF deduction clearly so employees can match it to their passbook.

Withdraw or transfer?

Withdrawing early has real costs: the money stops earning the EPF rate (8.25% for 2024-25), you may pay tax, and the five-year clock resets. When you change jobs, transferring through the portal is usually better. Withdraw only for a genuine need, and use a partial withdrawal before closing the account.

Official links

• EPF Scheme, 2026 — Gazette notification G.S.R. 525(E)Paras 46–49 (withdrawals), para 54 (claims)
• Employees' Pension Scheme, 2026 — Gazette notificationPara 13 — withdrawal benefit after 36 months
• EPFO Member e-Sewa portalFile claims, KYC, passbook access
• PIB — EPFO withdrawal reforms explained (15 Oct 2025)Why the 25% and 12-month rules were introduced
• PIB — Auto-settlement limit raised to ₹5 lakhAdvance claims settled in about three days

What to do next

Log in to the member portal today and check your KYC and service history. Fixing a name mismatch or missing exit date takes weeks, and you do not want to discover it in an emergency. If you are leaving a job, also check your gratuity entitlement and run the TDS numbers before choosing between withdrawal and transfer.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much PF can I withdraw while still working?

Under the EPF Scheme, 2026, you can withdraw up to 100% of your 'eligible member balance' for illness, education, marriage, housing or special circumstances once you have 12 months of membership. The eligible balance is what remains after setting aside the 25% minimum balance, so in practice you can take out about 75% of your PF account, including the employer's share and interest.

Can I withdraw my full PF after leaving a job?

Yes, but only after 12 months without employment in any establishment covered by the Social Security Code, counted up to the date you apply. Before that, you can still take a partial withdrawal of the eligible balance (about 75%). The waiting period does not apply to women who resign to get married, or to exits on retirement at 55, permanent incapacity, retrenchment, VRS or permanent migration abroad.

Is TDS deducted on PF withdrawal?

TDS is deducted only if you have less than 5 years of continuous service and the payout exceeds ₹50,000. The rate is 10% if your PAN is on record, and much higher without it. Transfers to a new employer's PF account and exits caused by ill-health or closure of the business are not subject to TDS. If your total income is below the taxable limit you can submit a no-deduction declaration.

How many times can I withdraw PF for education or marriage?

The EPF Scheme, 2026 allows education withdrawals up to 10 times and marriage withdrawals up to 5 times during your membership, for yourself or family members. Housing withdrawals are limited to 5 times and special-circumstance withdrawals to 2 times a financial year. These counts started afresh for every member on 29 June 2026.

How long does EPFO take to settle a PF claim?

Advance (partial) claims up to ₹5 lakh are auto-settled by software, usually within three days, if your UAN is Aadhaar-seeded and KYC is complete. For other claims, the 2026 Scheme requires EPFO to settle a complete claim within 20 days of receipt, or tell you about any deficiency within the same period.

When can I withdraw my EPS pension money?

If you leave before completing 10 years of pension-eligible service, you get a withdrawal benefit from the Employees' Pension Scheme, but under the EPS 2026 rules only after 36 months from the date your last contribution was due (or on reaching superannuation age, if earlier). If you rejoin work before then, the service simply continues towards your pension.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Employees' Provident Funds Scheme, 2026 — G.S.R. 525(E), Gazette of India, 29 June 2026 — Ministry of Labour & Employment (eGazette) · accessed 7 October 2026
2. 2.Employees' Pension Scheme, 2026 — Gazette of India, 30 June 2026 — Ministry of Labour & Employment (eGazette) · accessed 7 October 2026
3. 3.Ministry of Labour & Employment emphasizes benefits of EPFO reforms (15 Oct 2025) — PIB — Ministry of Labour & Employment · accessed 7 October 2026
4. 4.EPFO enhances auto-settlement limit for advance claims to ₹5 lakh (24 June 2025) — PIB — Ministry of Labour & Employment · accessed 7 October 2026
5. 5.EPFO Member e-Sewa (Unified Member Portal) — EPFO · accessed 7 October 2026
6. 6.EPF Scheme 2026 allows full withdrawal under 7 circumstances — Upstox News · accessed 7 October 2026
7. 7.EPF Scheme 2026 — payroll compliance changes for HR — greytHR · accessed 7 October 2026
8. 8.Section 192A (now section 392(7)): TDS on EPF withdrawal — Saral · accessed 7 October 2026
9. 9.Income tax on EPF withdrawal — ClearTax · accessed 7 October 2026