Great news: PF withdrawal from ATMs starting 2025

The Employees’ Provident Fund Organisation (EPFO) will introduce dedicated PF withdrawal cards to PF subscribers. The PF withdrawal cards will function similarly to regular bank ATM cards. Withdrawals will be capped at 50% of the PF balance to ensure fund availability for emergencies.

According to various news reports, Labour Ministry Secretary Sumita Dawra announced the development on Wednesday. “We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention,” she said.

It is reported that she also added that “systems are evolving, and every two to three months, you will notice improvements. I believe there will be a major enhancement by January 2025”.

Current withdrawal rules:

The conditions for withdrawing your Provident Fund (PF) balance depend on the reason for withdrawal:

Retirement

An employee can withdraw his/her entire PF balance after he/she reaches the age of 55. He can also withdraw up to 90% of your funds one year before retirement.

Unemployment

If you’ve been unemployed for more than one month, you can withdraw up to 75% of your balance. After two months of unemployment, you can withdraw the remaining 25%.

Partial withdrawal

You can make partial withdrawals for certain reasons, including:

Medical emergency: You can withdraw up to six times your monthly basic salary, or the total employee’s share plus interest, whichever is lower.

Marriage: You can withdraw up to 50% of your employee’s share of contribution to EPF if you’ve been employed for at least seven years.

Education: You can withdraw up to 50% of your employee’s share of contribution to EPF if you’ve been employed for at least seven years.

House purchase or construction: You can withdraw funds if the house is in your name or jointly with your spouse. You can withdraw up to 24 times your monthly salary for purchasing, or 36 times your monthly salary for purchasing and construction.

Home renovation: You can withdraw up to 12 times your monthly salary if you’ve been employed for at least five years.

To withdraw your PF, you’ll need your Universal Account Number (UAN), bank account information, identity and address proof, and a canceled cheque with the IFSC code and account number.

The years of service required for a partial withdrawal from an EPF account depends on the reason for the withdrawal:

Home loan repayment: Requires a minimum of 3 years of service

House construction or purchase: Requires a minimum of 5 years of service

House renovation or alteration: Requires a minimum of 5 years of service from the completion of the construction of the house

Marriage: Requires a minimum of 7 years of service

Medical emergency: No minimum service requirement