EPF is a retirement cum savings plan scheme that is provided to employees. If you gain NRI status, then you can’t make contributions. But it enables you to access, control, and withdraw funds according to the rules defined by EPFO for NRIs. At the moment, over 21 lakh new EPFO members joined in June 2025. This indicates the rapid progress of the formal retirement system.

NRIs need a good plan for an EPF strategy to avoid the pitfalls of taxation as well as missed benefits. EPF withdrawal makes up one of the most common problems among NRIs. This blog gives you all the information about EPF contributions and withdrawals for NRIs.

Basics of EPF 

Employee Provident Fund (EPF) is a retirement savings scheme in India that is contributed to jointly by employers and employees. Under this scheme, you and your employer need to contribute 12% of your monthly salary till you leave the job or retire. Only individuals working in India can withdraw EPF. After leaving the job, contributions stop, and the account becomes inactive after years of no deposits.

EPF Account for NRIs – Key Rules 

Here are the essential rules regarding the EPF account for NRI, including contributions, eligibility criteria, interest accrued, inactivity status, etc. 

Contributions changes

After the Indian resident becomes an NRI, their EPF account remains active. The contributions EPF rules for NRI and withdrawal changes are given below.

• NRIs cannot continue contributing to the EPF account if they move abroad 

• Your EPF account continues to earn interest up to the age of 58 on the existing balance even after becoming an NRI, as per EPFO rules.

• India’s Social Security Agreements (SSAs) relate primarily to social security contributions, not EPF transfers directly. There isn’t a widely implemented mechanism under EPFO that allows direct transfer of EPF balances to foreign retirement systems, even in SSA countries. Claims and withdrawals generally remain subject to EPFO rules.

Eligibility criteria

Here are the eligibility criteria for NRIs to withdraw EPF 

• You should be an EPF member while working in India

• You must classify your residency status as NRI

• You should have an active bank account and a valid PAN card in India 

Interest accrual and inactivity

Your EPF account NRI in India can accrue interest for a limited period after you move abroad. Interest continues on inoperative EPF accounts until age 58 or withdrawal, but tax rules may change once the account becomes dormant. 

Withdrawal Rules for NRIs – What, When & How 

Following the EPF withdrawal rules for NRI is important. NRIs can withdraw their EPF corpus without a waiting period after ceasing Indian employment. Partial withdrawals (like marriage/education/illness) are available but rarely used by NRIs who permanently relocate abroad. 

NRIs can withdraw their EPF balance immediately after ceasing Indian employment or permanently relocating abroad; the usual eligibility conditions such as unemployment for two months or retirement at age 58 apply only to resident withdrawals. After overseas relocation, an NRI can apply for full settlement immediately.

How can an NRI withdraw EPF? 

You can easily withdraw your EPF balance as an NRI offline and online. Here is the process you should follow 

Online Process 

If you link the Universal Account Number (UAN) to your Aadhaar, then you can initiate the withdrawal process through the UAN member portal or the UMANG App. Here's how you can do it 

• Go to the UAN member portal or the UMANG App.

• Fill out the withdrawal application with the necessary details and upload the essential documents.

• Now submit the form for verification and qualify for withdrawal 

Offline Process for EPF Withdrawal

Here’s how you can withdraw EPF funds offline

• Collect the EPF withdrawal form or download it from the portal

• Submit the filled form to the local EPFO office with the required documents 

• If your UAN is not linked to Aadhaar, then employer endorsement is required to proceed with the withdrawal 

Special cases 

Note that if you move abroad temporarily or delay withdrawal beyond three years, then your EPF account becomes inactive and stops earning interest. You can resume your old UAN/EPF account on returning to India, and your previous service counts toward the 5-year tax-exemption period.

Taxation and Compliance for NRIs 

Taxation is an important aspect for NRIs while withdrawing their EPF, and the rules vary from resident Indians. So you should understand the TDS and DTAA benefits below.

General Tax Rules

EPF withdrawals are exempt from tax in India if you have completed at least five years of continuous service. For NRIs, Tax Deducted at Source (TDS) at 30% generally applies on withdrawal unless benefits under a Double Tax Avoidance Agreement (DTAA) or certificate (e.g., lower/nil TDS) are obtained.

EPF withdrawals are tax-exempt if made after 5 years of continuous service in India. If you withdraw EPF before 5 years of continuous service, then you face TDS.

• Withdrawals below ₹50,000: No TDS is applicable, but taxable if within the income tax bracket.

• Withdrawals above ₹50,000: TDS applicable at 10% (with PAN) or 30% (without PAN).

Taxation for NRIs

TDS is usually 30% by NRIs under Section 195, unless covered by a Double Tax Avoidance Agreement (DTAA). In case a person has not updated the PAN, a higher rate of TDS will be applicable. To avail DTAA benefits, NRIs must submit Form 10F and Tax Residency Certificate (TRC) either through their banks in India or the EPFO. 

Avail DTAA Benefits

You can fill out the Form 10F to obtain the Tax Residency Certificate (TRC) and enjoy DTAA benefits. It helps you to avoid double taxation and reduce the TDS. 

Click here to learn more about DTAA.

Tips for Planning for NRI

NRIs should do advanced planning to manage their EPF funds. It helps them to fulfill long-term financial goals. Here are the considerations you should take care of:

• Should you withdraw immediately or keep the EPF account? Yes, NRIs can withdraw EPF immediately. You may either withdraw the balance for financial support when relocating abroad or keep the account active if you plan to return to work in India and continue contributions or earn interest.

• Impact of interest accrual after leaving India: The account earns interest till age 58 or withdrawal. Tax implications only arise if you withdraw before 5 years of continuous service, not only by age. Interest continues to accrue until age 58 on the EPF balance even without ongoing contributions after becoming an NRI; taxation applies only when you withdraw the funds, not on yearly interest credits before withdrawal. 

• Using EPF funds for overseas investments/property purchase: You cannot use the EPF funds to purchase the property abroad. Withdrawn EPF funds can be repatriated abroad after fulfilling RBI/Income Tax compliance (usually involving Forms 15CA/15CB with bank procedures)

• Return to India: What happens if you resume Indian employment? If an NRI returns to India and resumes employment, then the EPF account for the NRI is reactivated. In this case, you can ask your employer to link to the same UAN and preserve the 5-year tax continuity period.

• Estate planning and the death of a member (NRIs): NRIs must ensure proper EPF estate planning to withdraw funds without delays. But if the EPF account holder dies, then EPF funds will be paid to registered nominees or legal heirs with simplified claim procedures and minimal tax implications.

• New reforms affecting NRIs: As per the new EPFO reforms, NRIs can easily perform online withdrawals. It improves Aadhaar–PAN-based KYC verification and reduces delays. It also enhances coordination for NRIs to manage their EPF accounts smoothly.

 Conclusion 

Understanding the tax implications, withdrawal rules, and eligibility is important to manage your EPF account for NRIs. With proper planning, you can optimise the benefits of EPF savings and claim long-term financial security. It can be a good addition to your wealth building plan. 

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FAQs

1. Can an NRI withdraw EPF from abroad?

Yes, NRI can withdraw EPF from abroad using the EPFO website or the UMANG app. 

2. Can NRIs continue EPF contributions?

No, you cannot continue EPF contributions after your status changes to NRI.

3. Is EPF withdrawal taxable for NRIs?

Yes, your EPF withdrawals face tax implications if you withdraw funds before 5 years of service. 

4. Can NRIs check EPF balance online?

Yes, NRI can check EPF balance online through the EPFO website or the UMANG app.