Nearly 80 million subscribers of the Employees’ Provident Fund Organization (EPFO) will soon be able to withdraw their PF money using UPI (Unified Payments Interface). The central government is creating a system through which PF members will be able to withdraw their funds directly through UPI.
The Union Labor Ministry is working on this project and aims to start it by April 2026. This facility will eliminate the lengthy claim settlement process and members will get the funds immediately.
After entering UPI PIN, money will be transferred to the bank account.
According to a PTI report, in the new system, a portion of the EPF funds will be “frozen” (secured), while a larger portion will be available to members.
Members will be able to transfer this money directly to their account using the UPI PIN linked to their bank account.
Once the money is in the bank account, the user can withdraw it from an ATM or use it for digital payments.
EPFO is fixing software glitches
Currently, to withdraw PF, members have to fill the claim form online or offline, which is a time-consuming process. Although EPFO has started auto-settlement mode, it still takes at least 3 days. According to sources, EPFO is currently working on fixing some technical problems related to the software. Once this is in place, 80 million members will directly benefit.
75% of PF money can be withdrawn one month after leaving the job.
As per the PF withdrawal rules, if a member loses his job, he can withdraw 75% of his PF account balance after a month. This helps them to meet their needs during unemployment. The remaining 25% of PF balance can be withdrawn two months after leaving the job.
Income tax rules for withdrawing PF
If an employee withdraws his PF after completing 5 years of service in a company, then no income tax is levied on it. The 5 year period may be by combining one or more companies; It is not necessary that 5 years should be completed in the same company. The total period should be at least 5 years.