THE SARAL GUIDE

EPF Withdrawal Rules 2026: Partial Withdrawal, Final Settlement, Claim Steps and Tax

Updated Oct 28, 2026 Saral Jankari Team

A plain-language guide to withdrawing your EPF money under the Employees' Provident Funds Scheme, 2026: partial withdrawal, the 25% minimum balance, final settlement, how to claim online and how tax works.

The Employees’ Provident Fund (EPF) is the retirement savings account that builds up from your salary. Both you and your employer pay into it every month. From 29 June 2026 a new Employees’ Provident Funds Scheme, 2026 replaced the old 1952 Scheme, and the withdrawal rules became simpler. This guide explains when you can take money out, how much, and how to claim it.

The key points

You can take a partial withdrawal while you are still working, once you have completed 12 months of membership.
A minimum of 25% of everything credited to your account stays in it. You can withdraw up to 100% of the rest.
The smallest partial withdrawal is ₹1,000.
A final settlement (taking out the whole balance) is allowed on retirement at 55 or later, permanent disability, moving abroad permanently, retrenchment and similar cases, or when you have had no covered job for 12 continuous months.
Claims are filed online, using your UAN, an Aadhaar-linked bank account and a mobile number linked to Aadhaar.

Partial withdrawal: the three categories

The old rules had many separate reasons, each with its own conditions. The new Scheme groups them into three categories.

Category	Covers	How often
Essential needs	Illness, education, marriage	Illness: no fixed limit. Education: up to 10 times during membership. Marriage: up to 5 times.
Housing	Buying or building a house, repaying a home loan and similar housing needs	Up to 5 times during membership, counting all housing purposes together
Special circumstances	Any other situation, such as a natural calamity or loss of income. No reason has to be given.	Up to 2 times in a financial year

Withdrawals made under the old 1952 Scheme do not count against these limits. The counting started afresh on 29 June 2026.

How much can you take out?

The Scheme works with an Eligible Member Balance: your account balance minus a minimum balance. The minimum balance is 25% of all the money ever credited to your account (your share, your employer’s share and interest). It keeps earning interest and it grows as new money is credited.

Example: if a total of ₹8,00,000 has been credited to your account over the years and nothing has been withdrawn, the minimum balance is ₹2,00,000 (25%) and you can withdraw up to ₹6,00,000. The minimum balance does not shrink when you withdraw. It only grows as more money is credited.

If you leave your job before completing 12 months, you can still withdraw up to the Eligible Member Balance on that date.

Final settlement: taking out the whole balance

Retirement at age 55 or later.
Permanent and total disability that stops you from working.
Leaving India permanently for settlement or work abroad.
Retrenchment, or leaving under a voluntary retirement scheme.
Closure or transfer of the establishment in certain cases. Payment in these cases is made after a two-month waiting period.
No covered job for 12 continuous months. If you leave a job and do not join another employer covered by the EPF for 12 months, you can claim the full balance. The earlier wait was two months. A woman who resigns to get married does not have to wait.

Before you close the account, think about whether you need to. If you only change jobs, transfer the balance to your new employer’s account instead of withdrawing it. This keeps your service continuous, which also helps with tax (see below).

What about pension (EPS)?

Part of your employer’s contribution goes into the Employees’ Pension Scheme (EPS), which is separate from your PF balance. Its rules are different: the pension normally starts at 58, and a lump-sum pension withdrawal is possible only if you have not completed the required years of service. EPFO’s board decided in October 2025 to lengthen the wait for withdrawing the pension part after you leave a job to 36 months. Since these details are still being rolled out, check the pension claim option on the member portal for the current position.

Before you claim: a checklist

Your UAN is active and you can log in to the EPFO member portal.
Your mobile number is linked to Aadhaar, because the OTP goes there.
Your Aadhaar, PAN and bank account details are added and verified (KYC) on the portal. The bank account must be in your own name.
Your date of exit is updated by your last employer, if you are claiming after leaving a job.
Your e-nomination is filled in. It is compulsory under the new Scheme.

How to claim online

Open the EPFO member portal (unifiedportal-mem.epfindia.gov.in) or the UMANG app and log in with your UAN, password and captcha.
Under Online Services, choose Claim.
Check that your name, date of birth and bank account are correct, and verify the last four digits of your bank account number.
Pick the type of claim the portal offers you: a partial withdrawal (advance), or a final PF settlement. If you are eligible for the pension withdrawal, it appears as a separate option.
Choose the purpose and enter the amount.
Enter the address where you can be reached, confirm, and submit with the OTP sent to your Aadhaar-linked mobile.
Note the claim number and track the status in the portal.

The Scheme (paragraph 54) sets time limits: where your employer has to forward a claim, it must do so within 5 days, and a complete claim is to be settled within 20 days of the EPFO Commissioner receiving it. Delays still happen when the KYC or the name does not match, so check these first.

Is the withdrawal taxable?

Five years of continuous service or more: the final withdrawal is not taxed. Service in earlier jobs counts if you transferred your account.
Less than five years: the amount can be taxable. TDS of 10% applies when the withdrawal is ₹50,000 or more, and a higher rate applies if you have not given your PAN. If your total income is below the taxable limit you can submit Form 15G (or 15H if you are a senior citizen) to avoid TDS.
Exceptions: if the service ended because of ill health, closure of the business or another reason beyond your control, or you move the balance to another fund, there is no tax.
Partial withdrawals made while you are still employed are generally treated differently from a final settlement. The Income-tax Act, 2025 now replaces the old 1961 Act, and the finer points have not been fully clarified, so speak to a tax professional for a large withdrawal.

Common problems

Claim rejected for mismatch. Your name or date of birth on the EPF account differs from your Aadhaar. Ask your employer to correct it, or use the joint declaration option on the portal.
Bank account not accepted. The account must be in your name, linked to your UAN and seeded with Aadhaar and PAN.
Date of exit missing. Your last employer has to update it. Ask the HR team. If the employer has closed down, contact the EPFO office.
Claim stuck. Note the claim number and raise a grievance on the EPFiGMS portal (epfigms.gov.in) or call the EPFO helpline at 14470.
Someone asks for a fee to “release” your PF. Do not pay. Claims are free and are filed by you on the official portal.

Sources

Last checked: 28 October 2026. EPF rules were changed recently and EPFO is still issuing instructions, so confirm the current rules and forms on the EPFO member portal before you claim. This guide is general information, not tax or legal advice.