EPF withdrawal calculation: How much can you get from a ₹10-50 lakh account under EPFO 3.0?

EPF withdrawal under EPFO 3.0: The Central Board of Trustees (CBT) of the Employees Provident Fund Organisation (EPFO) recently decided to allow EPF members to withdraw up to 100% of the eligible balance in their provident fund accounts, including the employee's and employer's share. This "eligible balance" is basically 75% of the total EPF account balance. Please note this doesn't include the EPS balance, which is earmarked for pension only.

According to EPFO, 75% of the eligible amount is now withdrawable at any time without any documentation. Full withdrawal is also allowed under special situations.

If you are still confused about how much you can actually withdraw under the new rules, here are some examples to help you understand.

If your total PF balance is ₹10 lakh, you can withdraw a maximum of ₹7.5 lakh (75%). The balance ₹2.5 lakh will remain in your EPF account.

If your total EPF balance is ₹20 lakh, you can withdraw a maximum of ₹15 lakh (75%). The balance ₹5 lakh will remain in your EPF account.

If your total EPF balance is ₹30 lakh, you can withdraw a maximum of ₹22.5 lakh (75%). The balance ₹7.5 lakh will remain in your EPF account.

If your total EPF balance is ₹40 lakh, you can withdraw a maximum of ₹30 lakh (75%). The balance ₹10 lakh will remain in your EPF account.

If your total EPF balance is ₹50 lakh, you can withdraw a maximum of ₹37.5 lakh (75%). The balance ₹12.5 lakh will remain in your EPF account.

Confusion over new rules

The confusion spread because of a new provision, which says 25% of contributions must be kept as a minimum balance in the EPF account.

"A provision has been made for earmarking 25% of the contributions in the Members’ account as Minimum Balance to be maintained by the member at all times," the EPFO said.

The above rules mean that if you have ₹100 as your PF balance, ₹25 will be earmarked as a mandatory balance to be kept in the account. This will ensure that the member's account is not fully exhausted at any time, and a minimum (25%) amount will continue to earn interest at all times till retirement. However, this was misinterpreted by many on social media.

In case the member becomes employed once again before completion of the 12 months, both his EPF and EPS accounts would resume receiving contributions from the new employer.