How to Withdraw Employer Share in PF: Understanding PF Withdrawal Rules
PRITI SIRDESHMUKH- May 5
- 13 min read
Provident Funds, or PFs, are contribution-based savings plans in which employers and employees contribute their money to cover post-retirement expenses. The employee may access or withdraw the corpus established. It is subjected to particular Provident Fund withdrawal guidelines. Indian citizens working in the organised sector can receive financial support through the Employee Provident Fund. This is handled by a government organisation called the Employees' Provident Fund Organisation. In this article, we will explain the process of PF withdrawal, specifically in the context of the employer share.
Table of Content
Withdrawal of Provident Fund
PF is intended to be taken out once a person retires. Nonetheless, there are specific Provident Fund withdrawal guidelines that permit the person to use the accrued amount in an emergency. Account holders have three options for PF withdrawals, which are as follows:
PF ultimate settlement.
Partial disengagement from PF.
The capacity to withdraw from a pension.
In some circumstances, an individual may take a partial withdrawal from their employee provident fund account prior to its maturity (apart from when they are unemployed).
Withdrawal of Employer Share in PF
Every month, a portion of your pay is withheld on your behalf as a Provident Fund, or PF. When you leave your position, you can get your PF claim. Many people do not receive their provident fund (PF) or transfer their PF from their old company to their new one when they change jobs. This is primarily because it continues to provide tax-free profits and the money is secure with EPFO (Employees' Provident Fund Organisation). However, the tax exemption on interest profits after leaving a job has been removed by the Income-Tax Appellate (ITAT). Therefore, you must withdraw the money or transfer PF to your new company in order to avoid paying interest taxes after leaving your work.
EPF Withdrawal Rules 2025
Death insurance advantages- The Employees' Deposit Linked Insurance Scheme (EDLI) has raised the minimum death insurance payout to beneficiaries to Rs. 7 lakh in the event that the subscriber passes away while continuing to work.
Contribution of Employers to EPS- Employers contribute 8.33% of employees' salaries to EPS. It includes the base pay, retention allowance, dearness allowance, and permissible cash worth of food concessions.
Adjustments to the pension amount- The widow of an Employees' Provident Fund member now receives a minimum pension payment of Rs. 1,000 per month. It has been established at Rs. 250 for youngsters and Rs. 750 for orphans each month. From now on, the pension amount will be determined using the average wage for the previous 60 months rather than the previous 12 months.
Coverage by Insurance- The initial coverage amount under EPS was Rs. 1.56 lakh. According to recent changes, this amount has now been increased to Rs. 3 lakh per member.
Contribution of Employers to EPS- The adjustment in the minimum salary amounts has resulted in an increase in the employer's payment to EPS to Rs. 1,250 per month. It is regardless of whether the pay is below or over Rs. 15,000.
Adjustment to the threshold limit- EPF contributions will be considered for organisations with ten employees instead of the required minimum of twenty.
Retractions- According to the EPFO, withdrawals from an EPF account may be made through claim forms for funding an insurance policy, purchasing or building a home, and a few other permissible circumstances.
Steps for EPF Withdrawal Online
Employees can submit a PF withdrawal claim on the EPFO member website by adhering to the guidelines provided as follows. As mentioned before, employees who have linked their Aadhaar card details to their UAN account are able to withdraw money from their PF account without their employer's consent.
Step 1: Access the EPFO member portal.
Step 2: In the 'Our Services' column, pick the option 'For Employees'.
Step 3: Select the 'Member UAN/Online Service (OCS/OTCP)' option under the 'Services' tab of the page called 'For Employees' on the recently created homepage.
Step 4: You will be taken to an alternative website. To access the portal, enter your UAN, password, and Captcha code.
Step 5: Go to the 'Manage' menu and choose the 'KYC' option.
Step 6: A new webpage will be visible to you. To see your KYC details, navigate to the 'Digitally Approved KYC' section located at the bottom of the page. Verify the accuracy of the entire information.
Step 7: If all of the KYC information is accurate, select the 'Online Service' link from the top menu to start the withdrawal process.
Step 8: Choose 'CLAIM (FORM-31, 19 & 10C)' from the drop-down menu.
Step 9: It will lead you to a new page with the "ONLINE CLAIM (FORM 31, 19 & 10C)" form which is generated automatically.
Step 10: You must enter and confirm the last four digits of your registered bank account number.
Step 11: After the bank account has been verified, a "Certificate of Undertaking" will be produced. Choose 'Yes' when the certificate pop-up window shows to proceed.
Step 12: Choose 'Proceed for Online Claim' when requested.
Step 13: Select the 'PF ADVANCE (FORM-31)' option from the drop-down box next to the 'I wish to apply for' option to begin with the online withdrawal.
Step 14: The 'Purpose for which advance is required' choice must be completed by a drop-down menu from which a claim's justification must be selected. It is also important to fill out the sections for the employee's address and the advance amount.
Step 15: Submit your withdrawal application by clicking the box at the bottom of the page.
Step 16: All the required scanned documents may need to be uploaded. This varies depending on the type of withdrawal.
Step 17: The withdrawal money will be taken out of the EPF account and put into the appropriate bank account as soon as the employer authorises your request. Your registered cellphone number will receive an SMS notice as soon as the claim has been resolved.
Steps for EPF Withdrawal after Resignation
The steps to withdraw your PF after resigning are as follows:
Step 1: Providing your present employer with Form 19 (PF Settlement Form) is the initial step in withdrawing your PF balance. This form is easily accessible on the EPFO website or at the nearest EPFO office. You must sign the form before sending it to your present employer. A copy of your bank account's passbook or a cancelled cheque is also needed.
Step 2: Transferring your PF account from your old employer to your new one will help you avoid paying taxes on interest if you move jobs. All you have to do is send Form 13 to your present employer. Following submission, your present employer will confirm all required information and grant your request to withdraw. About 20 days may pass after the paperwork is submitted for this process.
Step 3: Your accumulated PF amount will be automatically credited to your bank account 30 days after the withdrawal request has been approved.
Eligibility For PF Withdrawal After Resignation
To be able to withdraw your PF balance following your resignation, you must meet the following requirements:
You have to pay the employer the appropriate sum or serve a one-month notice period.
You have to stay with your current employer for two months straight.
You need to update your personal information on the EPFO portal.
You haven't started a new job or company.
After one month after resignation, you can withdraw 75% of the total, and after two months, you can withdraw the full amount.
Conditions for Withdrawal of PF
The PF withdrawal process has four requirements. Take note of all the requirements and select the appropriate form.
Situation 1: If you are taking out both your EPS and PF balance before you have completed ten years of service, you are eligible to claim both amounts- All you have to do is complete the Composite Claim Form and choose both "pension withdrawal" and "final PF balance." You can obtain the "scheme certificate" by submitting Form 10C if you intend to return to work.
Situation 2: After completing ten years of service, you may withdraw your EPS and PF balance-You are not permitted to withdraw the EPS amount if your service time exceeds ten years. To obtain the scheme certificate, you can complete the Composite Claim Form and Form 10C. You will receive your pension whenever you reach the age of 58.
Situation 3: After 10 years of service, if you are between the ages of 50 and 58 and withdrawing your EPS amount and PF balance- You are eligible to get an early pension (reduced pension) if you have served for ten years and are between the ages of fifty and fifty-eight. All you need to do for this is complete Form 10D and the Composite Claim Form.
Situation 4: If, at the age of 58, you are taking out solely your PF balance in addition to your entire pension-It is quite easy to receive your entire pension claim if you are at least 58 years old. All you need to do is turn in Form 10D.
After you leave your service, you can choose and submit the form that best suits your needs and take advantage of all the benefits offered by the Employee Provident Fund (EPF) and Provident Fund (PF) schemes.
Reasons for Provident Fund Withdrawal
The following are some justifications for PF withdrawal, along with the regulations that apply in each situation:
In the Event of Unemployment- If a PF account holder has been jobless for more than a month after quitting their job, they are eligible to withdraw up to 75% of the total amount that has accumulated. This provision also allows the account holder to withdraw the remaining 25% if the unemployment period is longer than two months.
For Academic Pursuits: Employees who have PF accounts may withdraw up to 50% of their entire EPF contribution to pay for their own post-class 10 educational costs or those of their children.
To Cover the Cost of Marriage- According to the most recent PF withdrawal regulations, an account holder may additionally take out up to 50% of the employee's portion to cover marriage-related costs. The person in question or the account holder's son, daughter, brother, or sister should be married. This clause, however, can only be used after seven years of PF contributions have been made.
For People with Special Needs- Specially-abled account holders may take out six months' basic salary plus dearness allowance or employee share with interest (whichever is less) under the PF withdrawal rules 2025 in order to cover the expense of equipment. This choice was designed to lessen the financial strain that people can feel when they need to buy pricey equipment.
Regarding Emergency Medical Care: The EPF balance may also be withdrawn by a PF or EPF account holder to cover urgent medical care for specific illnesses. This facility can be used for personal use or to cover the cost of treating close relatives. One may withdraw the employee share plus interest, or six months' worth of minimum pay and dearness allowance, whichever is less.
To Cover Current Debts- To pay their home loan EMIs, people can take out 36 months' worth of basic pay plus dearness allowance, or the entire employee and employer share plus interest. Nevertheless, this feature is only accessible following a minimum of ten years of EPF account contributions.
To buy land plots or residential real estate- The account holder is permitted to take an early withdrawal in order to buy prefabricated homes or vacant land in accordance with PF withdrawal regulations.
Regarding Home Remodelling - According to the new provident fund regulations, employees can also utilise their share of interest and a year's basic pay plus Dearness Allowance, whichever is smaller, for home renovation, enlargement, or improvement. The PF account holder, his or her spouse, or both may jointly own the house property. A person can use this service twice: first after completing residential real estate and again after ten years, when they can take their first PF withdrawal. After turning 54 or one year before retirement or superannuation, an account holder is entitled to withdraw up to 90% of the accrued money under the revised EPF withdrawal criteria.
Additionally, if an employee passes away unexpectedly (while still employed), their nominee or beneficiary may apply for a settlement (Form 20) or a monthly pension (Form 10D). The PF withdrawal regulations offer enough flexibility to let a person use their resources to meet a range of emergency needs. If there is money left over after using the withdrawn amount, one can also decide to invest in other high-return investment options, such as mutual funds. While tax-saving mutual funds can also assist an individual in lowering their tax bill, these investment options provide a larger return than conventional savings plans.
Documents Required for PF Withdrawal
To withdraw PF, you must have the following paperwork:
The UAN, or universal account number.
Accurate bank account details must be supplied.
Since funds are not transferred to a third party until the PF holder passes away, the bank account needs to be in the PF holder's name.
An employer is required to register the employee's departure from the company and submit the employee's information to the EPFO. It is necessary to accurately indicate the joining and departing dates.
The employee's personal details, such as their father's name and date of birth, must match those on their identity document.
Tax-Free Limit for PF Withdrawals
When you take money out of your PF account, you may be eligible for tax reductions. However, this only applies if you leave after five years of consistent service. The tax bracket you are in also determines itYou will be liable for tax or tax deducted at source (TDS) if you withdraw your PF balance before the end of the five-year period. EPF withdrawals made prior to five years may, however, be tax-free depending on the specifics. They are:
When you must take out money for unavoidable medical crises or health problems
If your PF account balance is less than Rs. 50,000,
Using Form 15G or Form 15H to withdraw your PF balance (submitting a PAN will result in a 10% TDS).
When transferring your PF funds across accounts
The withdrawal of the employer's business
Lowering Tax Burden on EPF Withdrawal
Additionally, an account user can reduce their tax obligation by taking an early withdrawal of their PF balance. Withdrawals are typically subject to TDS. However, the updated EPF withdrawal regulations for 2025 provide those withdrawals made after at least five years of service will not be subject to TDS. Employee Provident Fund (EPF) was already a desirable savings plan, offering the ability to transfer an EPF account with a UAN number and the opportunity to collect interest on the remaining balance for up to three years without making any contributions. The ability to access funds in an emergency has further enhanced the system's benefits for those employed in the organised sector as a result of the revised withdrawal regulations.
Conclusion
Every month, your employer takes the Provident Fund (PF) from your pay cheque. Your PF balance is yours to keep when you retire or quit. By filling out the "Composite Claim" form on the EPFO website, you can get your money back. After you retire or quit, having a thorough awareness of the procedure enables you to make informed decisions regarding your PF money and facilitates withdrawals. This will assist you in comprehending how to withdraw your PF in a reasonable manner after quitting your employment.
Frequently Asked Questions (FAQs)
Can I take my employer's EPF share out?
Contributions to the EPF account are made by the employee and the employer. However, the money in an EPF account cannot be withdrawn at any point. The following are some crucial guidelines regarding EPF withdrawal: Unlike a bank account, funds in an EPF account can only be withdrawn after retirement, not while the employee is still employed.
What form is used to withdraw an employer's EPF share?
To claim advantages under the Employee Pension Scheme (EPS), Form 10C needs to be filled out. A portion of the employer's contribution is classified as EPS funds, which, under certain restrictions, can be taken in addition to the PF balance. The four-page Form 10C is used to request the employer share return.
Is it possible to take out PF while working?
Until they are employed, a person is not allowed to withdraw all or a portion of their PF funds. A person may take out up to 75% of the funds if they haven't had a job for at least a month. Moreover, if they have been unemployed for two months or more, they can withdraw the remaining money.
What EPF withdrawal conditions must be met in order to repay a home loan?
EPF withdrawals for home loan repayment are only available to members who have worked for three years in a row. Additionally, 90% of the EPF corpus is the most that can be deducted for this purpose.
Can I take out my entire PF balance prior to retirement?
You can take out your whole PF corpus only after retirement. Retirement will only be permitted once you reach the age of 55. You won't be able to get your full corpus if you retire before reaching this age. However, one year before your retirement, you are eligible to receive 90% of your EPF corpus. You should be aware that you cannot be younger than 54.
How can I take out my EPF without my employer's consent?
If you apply for an EPF withdrawal online, you don't need to ask your employer for confirmation. Moreover, in order to make online withdrawal claims, your PAN and Aadhaar must be linked to your UAN account.
When does a withdrawal from an EPF become taxable?
Provided you withdraw your EPF funds before the five-year mark, 10% TDS will be deducted (provided you present your PAN at the time of withdrawal; otherwise, 30% TDS would be deducted). However, if you withdraw your EPF after five years of continuous service, it is tax-free.
Is it possible to withdraw EPF at any time?
Only certain situations, such as a medical condition, the marriage of the EPF account holder or his children, the acquisition or development of real estate, or retirement, permit the withdrawal of EPF.
What's the latest update on PF withdrawals in the event that a person leaves their job?
In accordance with the most recent EPFO regulations, people who lose their jobs can withdraw up to 75% of their total corpus. One month following their termination, this can be completed. In the past, withdrawals beyond one month were not allowed. After two months of unemployment, the individual will be able to withdraw the remaining 25% and pay off the entire PF balance.
Can I take out a portion of my PF in an emergency?
For emergencies, such as medical needs, home construction, school expenses, etc., you are able to partially withdraw your PF. The restriction will depend on the reason for your partial withdrawal. A specific minimum service limit must be reached in order for you to be eligible for a partial withdrawal.
When filing an EPF withdrawal form, do people need to include Form 15G/H?
EPF will only be tax-exempt if it is withdrawn following five years of employment. If the withdrawal is done before the end of a five-year service tenure, that is not the case. In the latter scenario, taxes will be applied to the amount being taken out. Form 15G/H is used to prevent TDS from being subtracted from the amount of an EPF withdrawal.
Are withdrawals from an EPF exempt from taxes?
You are eligible for a tax exemption on your EPF withdrawal if you have worked continuously for five years with the same company and with your PF account. You will have to pay taxes on the amount you withdraw, though, if you do so before providing five years of continuous service.
Can I withdraw my EPF funds without the approval of my employer?
You do not need your employer's consent to take money out of your EPF account. You can proceed straight from the EPFO with the withdrawal procedure. Nonetheless, your employer must formally authorise the linking of your Aadhaar and UAN. The EPFO member will get the money straight from the EPFO after the Aadhaar and UAN have been correctly verified.
Does taking money out of an EPF account require a PAN?
A PAN is required when withdrawing or settling EPF money in order to prevent tax deductions. Failing to provide your PAN could result in a tax deduction at source (TDS) of up to 30%.
Can an EPF claim be done without accessing the EPF portal?
If you would prefer not to use the internet platform, you can fill out the EPF withdrawal form on paper. To utilise the online option, visit the EPF member portal and enter your password and UAN.
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