Can we Withdraw PF while Working?

Hi there, I am a private sector employee and I recently went through a personal crisis for which I had to withdraw money from my PF account. So, to answer your question about whether can we withdraw PF while working or not, I am your practical answer. I say so because I am still working in the same organization and my retirement is nowhere around the corner. Anyone can face a situation like mine and can be in dire need of withdrawing money for PF balance. So, I would like to tell you everything I know on this subject. Please read on to understand. EPF contributions are done generally to take care of your life post-retirement. But the EPFO has certain provisions through which a working employee can withdraw money for a PF account. Such withdrawals are known as ‘advances’. But you must know that these advances are allowed in certain specific circumstances like for medical requirements, buying a house, educational needs, children’s marriage, repayment of house loan, and so on. You can avail of these advances if your UAN is KYC compliant. All you need to do is fill and submit the UAN Form 31 to the EPFO either with or without going through your employer. These provisions have also been revised by the EPFO since the pandemic to aid the employees and support them in their financial crisis if any. For example, a new rule has been introduced wherein the employees can withdraw up to 75% of their net glance in their PF account or money equal to three months of their basic salary including DA, whichever may be lower. I would like to explain a few more reasons to substantiate when can we withdraw pf amount while working.  

Reasons	Eligibility Criteria	Withdrawal Limit
Housing loan for the purchase of flat	Employee must be in a minimum of 60 months of service	Can withdraw up to 36 months of their basic salary plus DA or the total of employee and employer shares with interest or the total cost of the house
For the marriage of themselves/ their/ children/ brother/ sister	Employee must be in minimum 84 months of service	Can withdraw up to 50% from their PF account
One year prior to retirement	Employee must be above 54 years of age	Can withdraw up to 90% of their PF amount balance
In case of medical needs/Natural Calamity	No minimum service tenure is required	Can withdraw up to 6 months of their basic plus DA or the entire contribution

I hope my knowledge of whether can we withdraw PF while working or not, was useful to you. Buy your dream home by investing your PF on home loans at as low as 6.5% interest rates on NoBroker. Read More: What is Form 19 in PF? How to Withdraw Pension Contribution in PF?

Wondering can we withdraw pension contribution from PF while working? Yes, you can withdraw a portion of your Provident Fund (PF) while still working under certain conditions set by the Employees' Provident Fund Organization (EPFO) in India. Scroll down to learn the conditions.

Can We Withdraw Money from PF Account While Working?

Yes. This is known as a partial withdrawal or an advance. Here are the scenarios and conditions under which you can withdraw PF while still employed:

• Marriage: You can withdraw up to 50% of your PF balance for your marriage or the marriage of your siblings or children. You must have completed at least 7 years of service.

• Education: You can withdraw up to 50% of your PF balance for the education of yourself, your children, or your siblings. You must have completed at least 7 years of service.

• Purchase or Construction of House: You can withdraw up to 36 times your monthly basic salary plus dearness allowance. This is applicable for purchasing a plot, constructing a house, or purchasing a house/flat. You must have completed at least 5 years of service.

• Home Renovation: You can withdraw up to 12 times your monthly basic salary plus dearness allowance. You must have completed at least 5 years of service after the construction of the house.

• Medical Treatment: You can withdraw up to 6 times your monthly basic salary plus dearness allowance or your total contribution (whichever is lower). This can be for medical treatment of self, spouse, children, or parents. There is no minimum service requirement for this purpose.

• Repayment of Home Loan: You can withdraw up to 36 times your monthly basic salary plus dearness allowance. You must have completed at least 10 years of service.

• Retirement: You can withdraw up to 90% of your PF balance after the age of 54, or within one year before retirement, whichever is earlier.

I hope this answers your query of can we withdraw PF money while working.

Procedure for Partial Withdrawal of PF Amount

Online Application

:

• Log in to the EPFO member portal using your UAN and password. Go to the “Online Services” tab and select “Claim (Form-31, 19 & 10C)”.

• Enter your bank account details and verify using the OTP sent to your registered mobile number. 

• Select the reason for withdrawal and upload the necessary documents. 

• Submit the claim form online.

Offline Application

:

Download and fill out Form 31. Get it attested by your employer. Submit the form to the regional EPFO office.

Partial withdrawal of PF while still working is allowed under various conditions like marriage, education, medical emergencies, home purchase, and renovation, among others. Ensure you meet the specific requirements and follow the appropriate procedures to access your funds.

This is all about can we withdraw pension contribution from pf while working.

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How to Know the Reason for PF Claim Rejection?

 

My friend, Sarita has been working for an organisation for the past 5 months. She wanted to withdraw her PF money. As a result, she asked me whether can I withdraw PF while working or not. 

As per my understanding about whether can you withdraw PF while working, EPF (Employees' Provident Fund), often known as PF (Provident Fund), is a required savings and retirement programme for workers at qualifying organisations. 

Although a full withdrawal is not allowed, EPF members are authorised to take a partial withdrawal while still employed.

In specific emergency situations, such as home construction or plot purchases, medical emergencies, further education, etc., partial withdrawals from EPF accounts is allowed. 

Can I withdraw my PF amount while working?

• In contrast to a Bank account, money from the EPF account cannot be withdrawn while a person is employed. EPF is a system for long-term retirement planning. Only after retirement, the EPF funds can be withdrawn.

• Emergency expenses including medical emergencies, home purchases or construction, and higher education are all eligible for partial withdrawals from EPF accounts. There are restrictions on partial withdrawal depending on the cause. The account holder can submit a request for a partial withdrawal online.

• Early retirement is not taken into consideration until the person is 55 years old, despite the fact that the EPF corpus can only be withdrawn after retirement. If the person is at least 54 years old, EPFO permits withdrawal of 90% of the EPF corpus one year before retirement.

I hope this clarifies your query about, “Can we take PF amount while working?” 

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I was going through the above-given answers by Ritesh and Anandi, I felt that I should share the story of my sister’s EPF withdrawal. So my sister works in a firm for 8 years. However, she was eager to opt for her MBA while she was working. MBA is an expensive program, so my father suggested to withdraw some amount from her PF. Both I and my sister were unaware of this and enquired, whether can we withdraw PF while working and if yes then how to take PF amount while working.

Going with my sister’s first query, that is, 

Can I withdraw my PF while working in same company?

My father told her that the EPF account does not allow withdrawals while a person is employed. Nevertheless, in the event of an emergency, an individual can partially withdraw the EPF balance.

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I’d really like to thank Anandi, and Ritesh for their detailed answers on can we claim PF while working. I showed their answers to my father and sister. My father completely agreed with Ritesh’s table that particularly highlighted the reasons to substantiate when can we withdraw PF amount while working.

He also added 2 more factors, apart from the ones mentioned by Ritesh, when we can withdraw the PF amount. They are as follows;

Reasons for withdrawal	Limit for withdrawal	No. of years of service required	Other conditions
Education	Up to 50% of employee’s share of contribution to EPF	7 years	Either for account holder’s education or child’s education (post matriculation)
House renovation	Least of the below:	5 years	The property should be registered in the name of the employee or spouse or jointly held with the spouse
	Up to 12 times the monthly wages and dearness allowance, or		The facility can be availed twice:        a. After 5 years of the completion of the house,         b. After the 10 years of the completion of the house
	Employee's contribution with interest, or Total cost.

In general, withdrawing EPF can be done either by submitting:

• Physical application:

One needs to download the new Composite Claim Form (Aadhaar)/Composite Claim Form (non-Aadhaar) to withdraw the EPF balance.

• Online application:

By visiting the

UAN portal

.

As, I already mentioned that my sister worked in that firm for 8 years, which meant that she was eligible to partially withdraw money for her education. So she opted for the online process and was able to withdraw her PF money.

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To answer your query about, “Can we withdraw full PF amount while working?” I’d like to say that according to the Employee Provident Fund Act of 1952 if you leave your job after turning 58, you are eligible to withdraw the entire PF sum as well as the EPS amount (Employees' Pension Scheme amount).

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I completely agree with Ritesh’s answer, about whether can I withdraw PF amount while working. Just to reiterate, I’d say that PF account holders can withdraw up to 75% of the net balance in their PF or EPF account, or three months' worth of their basic pay + dearness allowance, whichever is less. This will be considered a non-refundable deposit. You can file these withdrawal claims online.

I hope this clarifies the query, is it possible to withdraw PF amount while working?

EPF withdrawal rules;

• Unlike a bank account, the EPF account does not allow withdrawals while a person is employed. A long-term retirement savings plan is the EPF. Only after retirement is the money able to be withdrawn.

• In the event of an emergency, such as a medical emergency, the acquisition or construction of a home, or further education, a partial withdrawal from EPF accounts is permissible. Depending on the reason, partial withdrawal is subject to restrictions. A partial withdrawal request can be made electronically by the account holder.

• Although early retirement is not permitted until the person is 55 years old, the EPF corpus can only be taken after retirement. 90% of the EPF corpus may be withdrawn by an employee up to one year prior to retirement, providing they are at least 54 years old.

• If a person experiences unemployment before retirement as a result of lock-down or retrenchment, the EPF corpus can be removed.

• For the EPF sum to be withdrawn, the EPF subscriber must declare themselves unemployed.

• After one month of unemployment, EPFO now permits the withdrawal of 75% of the EPF corpus. After landing a new job, the remaining 25% can be transferred to a new EPF account.

• As per the previous regulation, 100% of the EPF can be withdrawn following two months of unemployment.

• With certain restrictions, tax exemptions are available for withdrawals of EPF corpus. Employee contributions to the EPF account must be made continuously for five years in order to qualify for tax exemption on the EPF corpus. If there is a break in contributions to the account for five consecutive years, the EPF amount becomes taxable. The entire EPF sum will therefore be regarded as taxable income for that fiscal year.

• When the EPF corpus is prematurely withdrawn, tax is deducted at source. TDS is not necessary, nevertheless, if the total amount is less than Rs. 50,000. Keep in mind that the 10% TDS rate will apply if an employee submits their PAN with the application. If not, the price is 30% plus VAT. Form 15H/15G is a declaration form that claims that TDS can be avoided since a person's whole income is not taxable.

• Employees are no longer required to wait for employment authorisation before withdrawing EPF. If the employee's UAN and Aadhaar are linked and the employer has given their approval, it can be done immediately through the EPFO. You can check your EPF withdrawal status online.

If you are pondering on how to withdraw PF amount while working? I’d say that you can withdraw EPF funds using the UAN member portal. To make an online withdrawal, a member must first activate his UAN and then log in to the site. Additionally, money can be moved from his previous PF account to a new one through the portal.

I’d like to conclude my answer here about “Can we withdraw full PF amount while working?” I hope this helps:)

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