Losing a job can bring both financial stress and uncertainty. To help employees during such times, the Employees’ Provident Fund Organisation (EPFO) allows partial withdrawal from the Employees’ Provident Fund (EPF).
As per the latest EPFO rules, a member can withdraw 75% of the EPF balance after one month of unemployment, and the remaining 25% after 12 months of continuous unemployment.
Official Notification & Background
Earlier, EPF members could withdraw their entire balance after two months of unemployment. However, this led to the loss of pension continuity and depletion of retirement savings.
To fix this, the EPFO issued a circular under Paragraph 68HH of the EPF Scheme, 1952, allowing staged withdrawals:
- 75% after one month of unemployment
- 25% after 12 months, if still unemployed
This rule balances financial liquidity with social security, ensuring that employees don’t lose their EPS (pension) benefits prematurely.
EPF Partial Withdrawal for Unemployed Members
| Particular | Description |
| Eligibility | EPF member unemployed for at least 1 month |
| Amount Allowed | 75% after 1 month, remaining 25% after 12 months of continuous unemployment |
| Rule Reference | Paragraph 68HH of EPF Scheme, 1952 |
| Purpose | To provide financial support during job loss and preserve pension eligibility |
| Applicable Authority | Employees’ Provident Fund Organisation (EPFO), Ministry of Labour & Employment |
| Credit Mode | Direct bank transfer to member’s verified account |
| Taxation | Withdrawals after 5 years of service are tax-free; before 5 years may attract TDS |
Eligibility Conditions
To apply for EPF withdrawal after job loss, the member must meet the following criteria:
- Must have a valid UAN (Universal Account Number) linked to Aadhaar and PAN.
- Must have been unemployed for at least 1 month (for 75% withdrawal).
- Must have been continuously unemployed for 12 months (for remaining 25%).
- Must not be employed with any establishment covered under EPFO during the unemployment period.
- Bank account and KYC details must be verified and active.
How to Withdraw EPF After Job Loss (Online Process)
You can easily withdraw EPF through the EPFO Member e-Sewa Portal. Here’s the step-by-step process:
- Visit https://unifiedportal-mem.epfindia.gov.in/
- Login with your UAN and password.
- Go to Online Services → Claim (Form 31, 19, 10C).
- Verify KYC and bank details shown on the screen.
Choose the claim type:
- “Advance for Unemployment (75%)”
- or “Final Settlement (Remaining 25%)”.
- Enter withdrawal amount and submit Aadhaar-based OTP verification.
- Track status under “Track Claim Status.”
- Processing time: Usually 5–15 working days if KYC and bank details are verified.
Documents Required
Prepare the following documents before applying:
- Aadhaar card (linked with UAN)
- PAN card (for tax verification)
- Cancelled cheque or bank passbook copy
- Form 31/19/10C (auto-filled in online mode)
- Declaration of unemployment (included in online claim form)
- If applying offline, submit these documents at your regional EPFO office.
Key Advantages
- Immediate financial relief: Access up to 75% of funds after one month of job loss.
- Pension continuity preserved: 25% is held for EPS linkage, preventing loss of pension eligibility.
- Tax-efficient: Withdrawals after 5 years of service are tax-free.
- Digital & easy: Entire process is online with Aadhaar-based verification.
- Flexibility: If re-employed before 12 months, the remaining EPF automatically carries forward to your new employer.
Purpose of the Rule
The 75%-25% rule ensures:
- Members don’t exhaust their savings too soon.
- Their EPS pension continuity stays intact.
- They receive immediate cash support during job loss.
- India’s social security framework remains sustainable and inclusive.
Conclusion
The EPFO 75%-25% rule is a thoughtful balance between short-term need and long-term protection. It gives employees access to emergency funds while preserving their pension benefits for the future.
If you’re facing unemployment, use this provision smartly — withdraw only what’s needed, keep your KYC details updated, and safeguard your retirement savings.
FAQs
1. What is the EPF withdrawal rule after job loss?
Ans: You can withdraw 75% of your EPF balance after 1 month of unemployment, and the remaining 25% after 12 months, if still unemployed.
2. Why did EPFO introduce this rule?
Ans: To provide financial relief while protecting pension eligibility (EPS) and preventing full withdrawal too early.
3. What is the official reference?
Ans: Implemented under Paragraph 68HH of the EPF Scheme, 1952 by the Employees’ Provident Fund Organisation (EPFO).
4. Who is eligible?
Ans: Members with a verified UAN, unemployed for at least 1 month, and not working in any EPFO-registered company.
5. What documents are required?
Ans: Aadhaar, PAN, bank proof, and KYC verification.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
