EPFO explains new rules for EPF advances: Check withdrawal limits, conditions and forms

The Employee Provident Fund Organisation (EPFO) has in a post on social media explained the new rules for EPF advances for subscribers, including withdrawal limits, frequency and more.

“Smart guide on new rules on EPF advances. Know all about withdrawal frequency limits and make informed decisions,” it stated in a post this week on X (formerly known as Twitter). According to the detailed guide, the new rules state that up to 75% of EPF balance (employees and employers share with interest), can be withdrawn after completion of 12 months of EPF membership.

There are three types of withdrawal claims allowed, and you will be required to state the reason why you want to make a withdrawal. Types of withdrawals allowed are as specified below:

• Notably, EPFO members are allowed to withdraw up to 100% of eligible funds i.e. 75% of their provident fund balance, after setting aside required minimum balance. Partial withdrawal provisions were simplified in October last year by merging 13 provisions into the three categories — Essential needs, housing related needs and special circumstances.
• The special circumstances category includes provision for job loss, where you can claim up to 75% immediate withdrawal and the remaining 25% after two months of unemployment.
• The partial provident fund advance allows members to claim non-refundable advances while actively employed. To make this claim, you will have to fill and submit Form 31.

• Further, the new rules also extend the period to avail early withdrawal / premature final settlement of EPF from the existing two months to 12 months; and final pension withdrawal from two months to 36 months.
• The final provident fund settlement requires submission of Form 19. Under this, you can claim withdrawal of your full PF balance (inclusive of employee share, employer share, and interest earned).
• However, subscribers only become eligible for 100% funds withdrawal once they have retired or resigned and remained continuously unemployed for at least two months i.e. 60 days.
• For pension, at time of retirement, you can choose to either withdraw amount in full or maintain annuity in EPS by availing a Scheme Certificate. Submitting Form 10C allows you to withdraw accumulated pension as a lumpsum, if your total continuous service is less than 10 years. Beyond 10 years, you must secure a Scheme Certificate and await monthly pension payouts at age 58.

• Online claims for members who have completed full KYC take between three to seven working days, according to the FAQ website.
• Meanwhile, auto-mode eligible claims take 72 hours, it said.
• And offline physical claims submitted to EPFO office can take up to 20 working days.
• Once successfully submitted, claims are generally approved and settled (credited to bank account) within seven to 15 working days.
• You will receive an SMS alert at every stage of the process — submitted, approved, and disbursed.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>

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