Under the Employees Provident Fund Scheme (EPF Scheme 1952), huge facilities are provided to crores of employees of the country. This is a savings scheme, under which private employees contribute 12% of their basic salary and dearness allowance (DA) every day. The same amount i.e. 12 percent is also contributed by the employer i.e. the company. Some part of this amount goes to the pension scheme. Actually, in the Employee Pension Scheme (EPS 1995), out of the 12 percent deposited by the employer, 8.33 percent goes to the employee’s pension fund. After completing 10 years of regular service, the employee becomes entitled to receive pension from the age of 58 years. This fund gives returns at the interest rate fixed by the government every year.
Information about rules for withdrawing money from EPFO
According to a Labor Ministry release last year, more than 7 crore members of the Employees’ Provident Fund Organization (EPFO) can now withdraw the maximum eligible fund including employee and employer’s share. EPFO’s Central Board of Trustees (CBT) approved simplified withdrawal rules on October 13, 2025, allowing EPF members to withdraw 50-77 percent of their total fund. According to this release, it is necessary for the employee to keep at least 25 percent of the fund untouched as a buffer, that is, the employee cannot withdraw the entire amount till 58 years i.e. till retirement.
Can you withdraw complete EPF funds?
EPF members can withdraw up to 100 percent of the eligible balance from their provident fund account. Eligible balance is the amount that remains in your EPF account after subtracting the required minimum balance. In this way, you can actually withdraw only up to 75 percent of your existing PF balance.
If the employee maintains the balance, he can take advantage of the higher interest rate offered by EPFO (currently 8.25 per cent per annum) and the benefits of compounding, thereby accumulating a larger corpus for retirement. It also says that this step has been taken to facilitate withdrawal of money while ensuring adequate funds for retirement.
Auto-settlement limit increased
The auto-settlement limit has been increased from Rs 1 lakh to Rs 5 lakh, allowing many EPFO members to withdraw their EPF funds within 3 days. This decision has been taken so that members can get faster funds for their needs like buying and construction of a house, education, treatment of illness or marriage.
Rules for withdrawing money from EPFO
Is there any time limit for withdrawing provident fund money? Only in case of leaving the job (not retirement or superannuation), the employee has to wait for 2 months before withdrawing the PF amount.
When will TDS be implemented
Will income tax or TDS be deducted on EPF withdrawal? The answer is that if a member withdraws his EPF and has been employed for less than five years and the amount deposited is more than Rs 50,000, then TDS will be applicable as follows.
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