PF claim
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Exploring Different Types of PF Claims: Withdrawal, Transfer, and Settlement

In today’s day and age, financial management is crucial for every individual because it becomes essential to ensure that one’s earnings not only cover their present expenses, but also secure their future. Among many financial tools and schemes available out there, the Provident Fund (PF) holds a special place, especially for the salaried class in India. A PF claim is an essential part of financial planning which everyone should understand, so we’ll spend some time exploring different types of PF claims?

Different Types of PF Claims

A PF claim includes various aspects like withdrawal, transfer and settlement, and each one of these has its significance, rules, and regulations that should be understood clearly before making a decision. For this, an individual should have their UAN (Universal Account Number) and password handy as they serve as the key to accessing your PF related information and making any kind of PF claim.

Withdrawal of PF is one of the common types of PF claims that employees make on retiring or after a defined period of unemployment. According to the Employees Provident Fund Organisation (EPFO) in India, members can withdraw their entire accumulated PF balance if they remain unemployed for a period of two months or more. As of today, partial withdrawal of PF is also allowed under specific circumstances such as marriage, education, purchase of property, home renovation, and medical emergencies among others. The maximum amount that can be withdrawn and other terms and conditions depend on the specific reason for making the withdrawal.

Transfer of PF is another common type of PF claim. When an individual changes jobs, he/she can choose to transfer their PF balance from their previous company’s PF account to the new company’s PF account. This transfer can be done seamlessly online, using your UAN and password, through the EPFO portal. While doing the transfer, your pension benefits get transferred as well which is a key advantage of PF transfer.

Settlement of PF Claims: Closing Your PF Account

Settlement of PF claims implies the process involved in closing your PF account and receiving the accumulated balance amount. Unlike withdrawal and transfer, settlement is a complete closure of your PF account, which usually happens when an individual retires.

It is important to plan your PF claims carefully because, apart from providing you with a lump sum amount during your retirement or during your need, the interest earned on the PF amount is completely tax-free under Section 10(11) and Section 10(12) of the Income-tax Act, 1961, and hence is a great tool for saving tax.


The above stated piece is informational in nature and is based on existing government provisions and guidelines. Investors are advised to review and gauge all the pros and cons of trading in the financial market in line with their financial position, anticipated returns, and market conditions.


This article provides a comprehensive view of various types of PF claims – withdrawal, transfer, and settlement which are integral to financial planning, especially for the salaried class in India. While withdrawal provides funds during need or retirement, transfer enables seamless shifting of PF balance between employers, and settlement allows for closure and full claim of PF on retirement. The process requires a UAN password for access. The key takeaway is the importance of careful planning for PF claims to maximize financial security and tax benefits. Investors should, however, ensure a thorough understanding of the implications before any claim.


PF claims play a crucial role in financial planning. They provide financial security during unforeseen circumstances and after retirement. All one needs to do is to remember their UAN and password which is the key to their PF account and make the right claim at the right time. However, it is advisable that investors study all the terms and conditions, rules and regulations before making any PF claim.

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