For salaried individuals, the Employees' Provident Fund (EPF) is considered one of the most reliable savings options. Now, there's good news for EPF account holders in 2025-26. The Employees' Provident Fund Organisation (EPFO) has simplified and clarified the withdrawal rules, making it easier for people to understand when and under what circumstances they can withdraw their money. The aim is to assist during times of need while safeguarding retirement savings.

Withdrawals Now in Three Major Categories
Previously, EPF withdrawal rules were divided into 13 categories, causing considerable confusion for employees. Now, the rules have been streamlined into just three major categories: essential needs, housing-related needs, and special circumstances. This has not only made fund withdrawal easier but has also simplified the online claim process.

When Can You Withdraw Your Entire EPF Amount?
You can withdraw your entire EPF amount under certain specific circumstances, such as after reaching the age of 58 or upon voluntary retirement, in case of disability or inability to work.  Additionally, you can withdraw 75% immediately after becoming unemployed and the remaining 25% after 12 months. Withdrawals are also permitted upon settling abroad.

Partial Withdrawals: How Much Can You Withdraw?
You can also withdraw money from your EPFO ​​account for certain specific needs. For example, after 5 years of service, you can withdraw funds for buying, building, or renovating a house. After 10 years of service, you can withdraw up to 90% to repay a home loan. For renovation, you can withdraw 12 times your monthly salary or the amount in your PF contribution, whichever is less. This facility can be availed twice.

For Medical Treatment, Marriage, and Education
You can withdraw money at any time for the medical treatment of yourself, your spouse, your parents, or your children. There is no minimum service requirement for this. After 7 years of service, you can withdraw 50% of your total contribution for your own marriage or the marriage of your children/siblings. Additionally, after 7 years of service, you can withdraw up to 50% of the total contribution for your children's education (after class 10).

Before Retirement or in Emergency Situations
You can withdraw 90% of the funds at the age of 54 or one year before retirement. A smaller amount can be withdrawn in case of natural disasters like floods or earthquakes, or if you haven't received your salary for more than two months.

What are the Tax Rules?
It is very important to understand the tax rules when withdrawing money from EPF. If an employee has worked continuously for five years or more, the money withdrawn from EPF is completely tax-free. However, withdrawing money before five years may attract TDS (Tax Deducted at Source).

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