Need cash for marriage, medical bills, or dream home? Here’s how much you can tap from your EPF

The Employees’ Provident Fund (EPF) is widely viewed as a vital pillar of retirement planning for millions of salaried individuals in India. But what many people don’t realize is that it also offers a financial cushion long before retirement. The EPFO, which manages the fund, allows partial withdrawals—known as EPF advances—for various personal and financial needs, providing flexibility without forcing employees to wait until their careers end.

EPFO members can withdraw their entire provident fund balance at the time of retirement, permanent settlement abroad, or if unemployed for at least two months. However, partial withdrawals are permitted under specific circumstances even before retirement. Importantly, any EPF withdrawal after completing five years of continuous service is entirely exempt from tax. Withdrawals before five years, however, become taxable unless they fall under certain exceptions like medical emergencies or specified loan repayments.

Multiple withdrawals permitted

According to the EPFO website, back-to-back withdrawals are allowed from an EPF account. However, there are strict rules about the reasons for withdrawal, the amount one can claim, and the length of service required. While the entire balance can only be withdrawn in cases like retirement or prolonged unemployment, partial withdrawals cater to various life needs.

Purpose-based withdrawals

Medical Treatment: Employees can withdraw up to six months’ basic wages and dearness allowance or their total contribution with interest, whichever is lower. Notably, there’s no limit to how often one can withdraw for medical purposes, nor is there any minimum service requirement.

Education and Marriage: After completing seven years of service, members can withdraw up to 50% of their own EPF contribution with interest. However, this benefit is capped at three times during an individual’s career.

Home Renovation: Members who’ve served at least five years can withdraw up to 12 times their monthly salary.

Home Loan Repayment: Employees with at least three years of service are eligible to withdraw up to 90% of their accumulated EPF corpus to repay a housing loan.

Pre-Retirement Needs: In the year before retirement, members can withdraw 90% of their corpus to help cover financial needs.

Full withdrawal is only permitted under specific circumstances, including retirement, permanent relocation abroad, or unemployment lasting two months or more.

Recent EPFO reforms

To streamline the process, the EPFO has introduced several digital initiatives. A significant update is the increase in the auto-settlement threshold for advance claims from ₹1 lakh to ₹5 lakh, allowing members quicker access to funds without having to visit an EPFO office physically.

How to apply for EPF advance

Online: Members can file claims through the EPFO Member e-Sewa portal using their Universal Account Number (UAN), Aadhaar, PAN, and bank details.

Offline: Those preferring physical submission can visit the nearest EPFO office and fill out the composite claim form along with identity and bank account proofs.

Why EPF partial withdrawals matter

EPF’s partial withdrawal facility offers essential financial relief during life’s big moments—whether it’s funding higher education, coping with medical emergencies, or managing housing needs. However, it’s crucial to weigh these withdrawals carefully, as premature depletion of EPF savings can impact long-term retirement security.

Ultimately, while EPF remains a cornerstone of retirement planning, its flexibility makes it equally significant as a financial lifeline during one’s working years—a fact that’s becoming increasingly relevant as people balance present needs with future security.