TV
In a landmark move for salaried employees across India, the Employees' Provident Fund Organisation (EPFO) has implemented a series of reforms in 2025 aimed at streamlining the withdrawal process from EPF accounts. Whether for retirement, medical emergencies, home purchases, or periods of unemployment, accessing EPF funds has now become significantly faster and easier.
The centerpiece of these reforms is the rollout of EPF 3.0, operational from June 2025. This upgraded system allows members to instantly withdraw up to Rs 1 lakh using an ATM or UPI, eliminating the lengthy procedures that were standard in the past.
Furthermore, partial withdrawals up to Rs 5 lakh are now processed automatically within 72 hours, provided the member's Know Your Customer (KYC) details are updated and their Aadhaar is linked with their Universal Account Number (UAN). According to EPFO CEO Amit Ghosh, these automated claims no longer require employer approval under these conditions.
Full and Partial Withdrawal Rules
Members can fully withdraw their EPF savings upon reaching 58 years of age, or after two consecutive months of unemployment. In such unemployment cases, up to 75% of the EPF balance can be withdrawn. Employees relocating permanently to another country are also eligible for complete withdrawal.
Partial withdrawals continue to be permitted for specific purposes such as medical treatment, marriage, education, home construction, and home loan repayment. For example, an employee with at least seven years of service can withdraw 50% of their contribution for marriage or education expenses. In medical emergencies, members can access either six months’ basic salary or the total contribution with interest, whichever is lower—regardless of service duration.
KYC Compliance and Claim Process
To avail these new facilities, employees must ensure their KYC details—including Aadhaar, PAN, bank account, and mobile number—are updated and linked with their UAN. Withdrawal claims can be submitted via the EPFO website or the UMANG mobile app. For instant withdrawals through UPI, the associated bank account must be linked with the UPI platform.
Tax Considerations on Withdrawals
Withdrawals made after five years of continuous service are completely tax-free. However, if a member withdraws funds before completing five years, TDS (Tax Deducted at Source) is applicable—10% with PAN, and 30% without PAN. No TDS is charged if the total amount withdrawn is below Rs 50,000.
Automation and Digital Access
Currently, 95% of all EPF claims are settled through automated processes, marking a substantial improvement in operational efficiency. The introduction of ATM and UPI-enabled withdrawals enhances the digital capabilities of the EPFO and aligns with the government’s broader push toward financial digitization. These changes aim to make the EPF more responsive to both long-term retirement planning and urgent financial needs, turning it into a more versatile financial safety net for millions of employees.
