EPFO warns against withdrawing PF for wrong reasons: Withdrawal rules & penalties
The EPFO has issued a warning against misusing Employees' Provident Fund (EPF) withdrawals. The EPFO rules state that early withdrawal is allowed in specific uses, including housing, medical emergencies, and education. The Provident Fund body has the powers to impose penalties on misuse of withdrawals.
New Delhi: The Employees' Provident Fund Organization (EPFO) has warned members against using PF funds for purposes not specified under the rules. As per the updated EPF withdrawal rules 2025, members are allowed to withdraw up to 90 per cent for housing after 3 years of membership, under Para 68-BD.
Issuing a warning to Employees' Provident Fund members on its X account, the PF body said if an individual withdraws PF money for reasons other than specified under the EPF Scheme, 1952 or at the time of withdrawal could be treated as a violation. It further warned that misused funds will be recovered along with penalties.
"Withdrawing PF for wrong reasons can lead to Recovery under EPF Scheme 1952. Protect your future, use PF only for the right needs. Your PF is your lifelong safety shield!” the EPFO stated in its post.
The EPFO will be launching EPFO 3.0, a new digital platform, which will make PF services faster, easier, and more digital. The EPFO members would be able to withdraw PF funds through ATMs or UPI. To prevent members from withdrawing Provident Fund money for unspecified reasons, the EPFO has issued a warning of penalty against such actions.
Allowed Reasons for EPF Withdrawal
The EPFO rules state that members are allowed to withdraw part or all of the balance only under the mentioned circumstances: after retirement, if someone is unemployed for more than two months after leaving a job. EPF money can be withdrawn for buying, building, or renovating a house, repaying a home loan, medical emergencies, or for children's education or marriage expenses, and purchase residential property or land plots. Members can withdraw funds for these purposes and a limit is also prescribed, depending upon the purpose.
The EPFO has clearly stated that if a member withdraws PF funds by lying or providing false information, the body will consider it as a violation of the EPF Scheme 1952. According to Rule 68B(11), if the withdrawal is misused, the EPFO can recover the amount along with penal interest. Furthermore, the member will not be permitted to make any further PF withdrawals until the full amount is repaid.
Online and Offline PF withdrawal
For online PF withdrawal, the beneficiary can use the UAN portal.
For offline application, the EPF members are required to use the Composite Claim Form (Aadhaar) if UAN is KYC compliant.
If UAN is not KYC compliant, applicants are allowed to use Composite Claim Form(Non-Aadhaar) for the offline process.
EPF Withdrawal via UAN Portal
- Visit the UAN portal
- The member has to Log in with by entering UAN and password.
- Next step will be to enter the captcha and click on the ‘Sign In’ button.
- Click on the ‘Manage’ tab and select ‘KYC’
- Go to the ‘Online Services’ tab; select ‘Claim (Form-31,19,10C&10D)’ option from the drop-down menu
- Member details will be displayed
- Enter bank account number and click on ‘Verify’
- Click on ‘Yes’ to sign the certificate of the undertaking and then proceed
- Click on ‘Proceed for Online Claim’
Can I withdraw 100% from EPFO?
EPFO allows 100 percent withdrawal of Provident Fund amount, it is only permitted after retirement or a member is jobless for a minimum of two months or more after leaving your job. An EPF member is allowed to claim 100% of Provident Fund (PF) via online process if the individual is unemployed for at least two months or upon retirement.