EPF withdrawal rules 2026: composite claim form, auto-settlement under ₹1 lakh, and the 75 percent after 1 month rule

The EPF withdrawal architecture in 2026

The Employees' Provident Fund Organisation has rebuilt its withdrawal architecture in three waves. Wave one, in 2017, was the Universal Account Number (UAN) and Aadhaar linkage, which let an employee track contributions across multiple establishments under one umbrella. Wave two, in 2020, was the composite claim form, which collapsed three separate withdrawal forms into a single online filing. Wave three, in 2024, was the auto-settlement engine for claims up to ₹1 lakh, which removed the manual approval step entirely for compliant claims.

The cumulative effect: an Indian employee in 2026 can withdraw their full PF balance, in a regulated way, within 3 to 10 working days of filing the claim. The earlier 60 to 90 day timelines are now the exception, reserved for non-Aadhaar-seeded UANs, contested service histories, and high-value claims above ₹5 lakh.

The three forms inside the composite claim

The composite claim form is the umbrella filing. Inside it sit three legacy forms.

Form 19 is full and final withdrawal of the EPF balance. Used when the member is retiring, has been unemployed for 2 months and is closing the account, or is moving abroad without intention to return. Form 19 closes the PF account.

Form 31 is partial withdrawal as a non-refundable advance. Used for the permitted partial withdrawal heads under Paras 68B, 68BB, 68H, 68J, 68K, and 68N. The PF account stays open after Form 31; the withdrawn amount reduces the balance but contributions continue.

Form 10C is withdrawal of the pension component. The Employees' Pension Scheme, 1995 sits alongside the EPF and accumulates 8.33 percent of the employer's contribution (capped at ₹15,000 wage). Form 10C withdraws the pension balance where the member has less than 10 years of pensionable service. With 10 or more years, the pension converts to a monthly pension payable from age 50 (early) or 58 (normal).

For a typical employee in their first 5 to 10 years of working life with a job change, the relevant filing is Form 19 (close the PF) plus Form 10C (withdraw pension). Both sit inside a single composite claim submission.

UAN-based auto-settlement under ₹1 lakh

EPFO's auto-settlement engine processes claims that meet five conditions: Aadhaar-seeded UAN, validated bank account, complete KYC, no employer query pending, and claim amount under ₹1 lakh. Claims that meet all five auto-settle within 3 working days, with no manual EPFO officer approval.

The auto-settlement rate has grown sharply. By the EPFO Annual Report for FY 2024-25, roughly 62 percent of claims under ₹1 lakh were auto-settled in 3 days or less, up from 18 percent two years earlier. The pain points that remain are non-Aadhaar UANs (typically older accounts from the pre-2017 regime) and bank accounts that fail name-match validation.

Claims above ₹1 lakh route to manual processing with a 10 to 20 working day window. KAMRIT's experience on payroll-retainer clients is that the average settlement time for ₹1 lakh to ₹5 lakh claims is now 12 working days; for ₹5 lakh-plus claims it is 18 working days.

The 75 percent after 1 month rule (Para 68HH)

The November 2022 amendment to Para 68HH of the EPF Scheme, 1952 created a new withdrawal route for unemployed members. The rule: a member who has been continuously unemployed for one month or more can withdraw 75 percent of the PF balance as a non-refundable advance. After two months of continued unemployment, the remaining 25 percent can be withdrawn as a final settlement.

The 1-month withdrawal does not close the PF account. The member can rejoin employment, the PF contributions can resume against the same UAN, and the previously-withdrawn 75 percent is treated as a non-refundable advance that does not need to be repaid.

The rule is the single most-used withdrawal route for employees in transition. The 1-month wait is cheaper than the 2-month wait for the full Form 19 close-out, and it does not bridge-burn the PF account in case the member finds a new job in month 2 or 3.

The eligibility check is documentation-light: the member declares the start date of unemployment on the UAN portal and submits the claim 31 days later. EPFO does not independently verify the unemployment, but a fresh employer's EPF contribution that starts within the 1-month window will block the claim.

Partial withdrawal heads under Form 31

Form 31 partial withdrawals are restricted to specific life-event purposes. Each head has its own eligibility window.

Para 68B (housing). Purchase or construction of a dwelling unit. Minimum 5 years of PF service. Limit: 36 months of basic wages plus DA, or member's PF balance plus employer's share plus interest, whichever is lower. Used commonly for home loan down-payment.

Para 68BB (purchase of dwelling site). Minimum 5 years of service. Limit: 24 months of basic plus DA, or member share plus interest, whichever is lower.

Para 68H (medical). Hospitalisation for one month or more, or major surgery, or treatment for TB, leprosy, paralysis, cancer, mental derangement, or heart ailment for self, spouse, child or parent. No minimum service. Limit: 6 months of basic plus DA, or member share plus interest, whichever is lower.

Para 68K (marriage). Marriage of self, son, daughter, brother, or sister. Minimum 7 years of service. Limit: 50 percent of member's share at the time of application. Permitted up to 3 times in service.

Para 68J (lockout). Where the establishment is closed for more than 15 days and wages have not been paid for 2 months. Limit: own share plus interest. No minimum service.

Each Form 31 filing requires the head-specific documentation, hospital records for 68H, marriage card for 68K, registered sale agreement for 68B, and so on. Auto-settlement is available for Form 31 claims under ₹1 lakh where documentation is complete and bank account is validated.

Taxability under Section 192A: the 5-year rule

Section 192A of the Income Tax Act, 1961 taxes EPF withdrawal where the member's continuous service is less than 5 years. The taxable amount is the entire withdrawal, employer contribution, employee contribution, and accumulated interest, except the employee contribution that was not claimed as Section 80C deduction (which is rare in practice).

TDS at 10 percent applies on withdrawal above ₹50,000 where PAN is furnished. Where PAN is not furnished, TDS is at the maximum marginal rate (currently 34.32 percent including surcharge and cess).

The employee contribution that was claimed as Section 80C deduction in prior years is added back to "Salary income" for the year of withdrawal. The employer contribution and the interest are taxed as "Profits in lieu of salary" under Section 17(3).

The 5-year clock counts continuous service across all establishments contributing to the same UAN. So an employee who worked 3 years at company A (UAN seeded), and then 2.5 years at company B (same UAN), has 5.5 years of continuous service and the withdrawal is tax-free, even though no single employer-relationship was 5 years.

Where the service is broken (UAN inactive for a period of 36 months or more), the clock resets. This is the most common reason a withdrawal that the employee expected to be tax-free turns out to be taxable.

The transfer-versus-withdraw decision

Where the member is changing employment (not exiting the workforce), the EPFO position is clear: transfer the PF balance to the new employer's establishment, do not withdraw.

The transfer keeps the 5-year clock running. It preserves the EPS pensionable service. It maintains tax-deferred compounding. It avoids the Section 192A TDS.

The withdrawal makes sense only where the member is genuinely exiting paid employment (retiring, moving abroad permanently, or transitioning to self-employment with no further EPF contribution).

KAMRIT's payroll desk processes Form 13 transfer requests for joiner employees as part of the onboarding pack. The transfer flows through the UAN portal and typically settles in 7 to 21 working days.

How KAMRIT positions PF withdrawal support

KAMRIT runs PF settlement support for payroll-retainer clients as a separation-process deliverable. When an employee separates, the HRBP triggers a settlement-support ticket, KAMRIT walks the ex-employee through the withdraw-versus-transfer decision, files the appropriate composite claim on the UAN portal, tracks settlement, and closes the ticket on credit confirmation.

Comparable individual-DIY tools include the EPFO's own UAN member portal (free, full functionality) and platforms such as IndiaFilings and Vakilsearch for assisted filings at ₹500 to ₹1,500 per claim. The KAMRIT positioning is on the consolidated UAN service history check, the Section 192A taxability call, and the audit trail for the employee's tax file.

If your company is going through a separation or restructuring cycle and you need PF settlement support for outgoing employees, talk to KAMRIT. The payroll desk handles individual settlements and bulk separation packs. Fixed fee from ₹2,000 per employee for individual settlement support. Send a brief to the Payroll and PF / ESI Compliance page or start a conversation with a senior partner.