PF withdrawal simplified: Here's when you can access 100% of funds
New Delhi, Jan 16, 2026
One year in service, five withdrawal types, and how to get 100% of your PF
Tapping into Employees’ Provident Fund (EPF) savings has never been easier, although experts advise caution. Employees’ Provident Fund Organisation (EPFO) has streamlined its withdrawal framework, making it easier to understand when and how members can access their PF money.
Fewer categories, clearer rules
Previously, PF withdrawals were divided into over a dozen categories, each with different service requirements ranging from two to seven years. This made the process cumbersome, especially for urgent financial needs. EPFO has now condensed these into five broad categories, simplifying eligibility criteria and reducing the chances of errors in claims.
Minimum service period: one year
A key change under the revised rules is the one-year minimum service requirement for most types of withdrawals. Earlier, the required service period varied depending on the withdrawal reason, causing confusion. The standardised 12-month threshold now allows employees to plan withdrawals more predictably.
Access to both employee and employer contributions
The updated rules also permit access to a larger portion of PF funds. Withdrawals can now include both employee and employer contributions, along with accrued interest. In many cases, members can withdraw up to 75 per cent of their eligible PF balance, providing greater flexibility for short-term financial needs.
When full PF withdrawal is allowed
EPFO clearly specifies situations where employees can withdraw 100 per cent of their PF savings after completing one year of service.
These include:
• Medical treatment for self or family
• Higher education expenses
• Marriage-related costs
• Housing needs, such as buying a home, constructing a house, repaying a home loan, or major repairs
• Special circumstances, such as voluntary withdrawals without a specific reason, are permitted but come with limits on frequency.
Safeguards for retirement savings
While the rules offer more flexibility, EPFO continues to protect long-term retirement funds. Around 25 per cent of the PF balance remains effectively safeguarded, discouraging frequent withdrawals and preserving the benefits of compounding, particularly for lower-income workers.
Support during unemployment and retirement
Employees who lose their job can withdraw up to 75 per cent of their PF immediately and the remainder if unemployment continues for a year. Full withdrawal is also allowed upon retirement at 55, permanent disability, retrenchment, voluntary retirement, or permanent relocation abroad. Pension benefits under the Employees’ Pension Scheme (EPS) remain unaffected, with monthly pensions payable only after completing ten years of pensionable service.
[The Business Standard]
