Dear Friend,

Thank you for visiting my Blog. Not all of us were born in a rich family and we always think about retiring as a CROREPATI. Thinking is one thing, have you done anything to achieve that dream?

In order to become rich, you have to invest and do it wisely. For that you need knowledge and ideas. There are a few good books that I have published which you can buy for a nominal price which can help you with that.

They are:

1. Your Complete Guide to Indian Income Tax and Retiring as a Crorepati
2. The Most Comprehensive Financial Guide for Women and
3. Safe Investment Havens of India

To know more about these books, their price and check out a sneak preview, please Click Here...

Best Wishes!!

Anand

Friday, April 26, 2013

All Your Questions about Employee Provident Fund - Answered!!!


In the past few articles in our blog, we had taken a detailed look at the Employee Provident Fund Scheme of India. After reading it, I am pretty sure you would have a number of questions that come up in your mind. The purpose of this article is to try to answer all those questions.

If any of your questions arent available below, please feel free to leave a comment and I would be happy to answer them...

1. Is it Compulsory for the all the employees to contribute to the Employee Provident Fund?

Yes. Anyone who is an employee of an organization that is Registered with the EPFO, has to contribute towards their respective EPF Accounts.

PS: An Employer and Employee can come to a consensus and opt not to contribute EPF if the employee's salary is above Rs. 6500/- per month. However, the employer would have to convince all other employees to agree to this because the employer cannot opt to contribute the employer portion of EPF to one employee and not do so for the rest. So, technically speaking, it is not compulsory but it is in all practical cases.

2. Can I Nominate someone to receive the proceeds of my EPF Account?

Yes. Each member has to make a nomination against their EPF Accounts, to receive the amount accumulated under it, in the event of his/her death. Usually it is the Spouse/Children for married individuals and Parents for unmarried people.

3. Can I Nominate my Brother or Sister or any of my In-Laws for my EPF Account?

No. Only Spouse, Children and Parents can be nominated as receivers of the Proceeds of our EPF Accounts.

4. Can I Nominate more than one person?

Yes. When you nominate multiple individuals, you need to mention the % share each individual must receive. If that is done, the amount will be distributed accordingly.

5. If one does not have any family, what are their options?

If an individual has no family he/she can nominate any person or persons of his choice but once they subsequently acquire a family (Marriage) such nominations become invalid. The invidual has to make fresh nominations of one or more persons belonging to his/her family.

Ex: Let us say Mr. X was brought up in an Orphanage and has no family. He finished is studies and joined ABC Private Ltd. as an employee and opened up his EPF Account. As he has no immediate family, he nominated his best friend Mr. Y against his Account. After 5 years, X fell in love with Z and eventually married her. As a result, his earlier nomination of Mr. Y became invalid and he has no choice but to nominate Z as the receiver of his EPF corpus. In future if X and Z have kids, X can include his kids too as nominees.

6. When does an employee become eligible for the employee pension scheme?

For an employee to become eligible for Pension fund, he/she completes 10 years of continuous service.

7. Does the 10 years of continuous service refer to - working in the same company?

No. 10 years of continuous service refers to keeping your EPF Account and EPS Accounts open and active for a period of at least 10 continuous years. Let us say if you switch your job from Company A after completing 7 years of service to Company B, you need to transfer your EPF and EPS Accounts to your new job. If you do so, after 3 more years, you will satisfy the 10 continuous years criteria. In case you opt to withdraw your accumulated corpus, you have to start afresh in company B and work for 10 more years to be eligible for EPS.

8. Do contract staff need to open an EPF account?

No. The EPF account is only for permanent staff of the company. Contract staff, Temporary staff and other people who arent on the permanent payroll of the company are not covered by EPF

9. Can I withdraw my EPF money anytime I want?

Yes. However, you need to satisfy a few conditions in order to be eligible for withdrawal. Read the article titled Can I Withdraw Money from My Employee Provident Fund (EPF) Account? to learn more about this.

10. Can I withdraw my EPF corpus when I resign from my Job?

Yes and No. Actually speaking it is illegal to withdraw your entire PF corpus when you switch jobs if you are going to join your new job within 2 months of resigning from your current job. Many people manage to withdraw their PF corpus when they switch jobs and join the new company immediately. Though it is possible, it is actually illegal and has to be avoided.

When you move from one job to another without taking the 2 month break as stipulated by the law, you need to get your PF Account transferred. Read the article titled Can I transfer my PF Account to my new Employer? to learn more about this.

11. Is PF Withdrawl Taxable (In case of withdrawal of the entire corpus)?

Yes and No.

If you are withdrawing your corpus after at least 5 years of continuous service, the amount received is not taxable.
If you are withdrawing your corpus before complete 5 years of continuous service, the amount received is fully taxable. The amount received will be added to your total income for the financial year and taxed according to the prevailing tax slabs.

12. How long does a usual EPF Withdrawl take?

Usually the processing time is around 2-3 weeks but in reality you will receive the money only after around 90 days. The reason is because - your previous employer cannot submit the withdrawl request until 60 days pass after your last date with them. The EPF office takes another 2-3 weeks and eventually you will get the money around the end of the 3rd month.

13. How will I receive my EPF withdrawl money?

Earlier people used to receive Postal Orders or Demand Drafts. These days people are asked to submit their bank details and the money is credited electronically (Through ECS)

14. How will I know the current accumulated EPF corpus?

Most large organizations generate EPF Account statments on a regular basis (Once a quarter or once a year) and share the same with their employees. One of my old employers in India, had an intranet website where I could login and check my running EPF corpus value on a monthly basis. Alternately you can visit your nearest EPF office and find out your EPF balance by submitting your EPF Account number along with your identity proof.

Recently, the EPFO has launched a website where people can check their balances online. Pls refer to the article titled Breaking News for EPF Account Holders in our blog for details on how to check your EPF Account balance online.

15. What is the minimum number of permanent employees an organization must have, in order to open EPF accounts for its employees?

At least 20.

16. What happens if, a company had more than 20 people and registered with EPFO but at some point in time in future, the number fell below 20?

Any establishment which has been covered under the Act once shall continue to be governed by the Act even if the number of persons employed by them at any time falls below 20.

17. Are Trainee employees covered under the EPF Act?

Yes, a trainee would be considered as an employee as per the Act but in case the trainee is an apprentice under the Apprentice’s Act then he/ she will not be considered as an employee.

18. What are the details I need to know in order to view my EPF Balance online?

You need to know your Employee Provident Fund (EPF) Account Number, Name (As per in EPF Slip/Statement) in order to use the online facility. First you need to register and then you can view the details.

19. What can I do, if my PF withdrawal or transfer request is stuck and is not getting completed?

The EPF Organization has a Grievance Redressal Mechanism in place. You can submit an online complaint and you will get a response within 30 days. Refer to the article "EPF Grievance Redressal" in our blog to learn more about how to get our grievances addressed.

20. Does the EPF Organization come under the Right To Information (RTI) Act?

Yes. All Government organizations, including the EPFO fall under the RTI Act. Refer to the article about EPFO and the RTI Act by clicking here

21. What would happen if my Employer fails to remit the EPF contribution (Both employee and employer share) after deducting it from the employees salary?

Deducting EPF from an employees salary and not remitting it to the EPFO is considered a Criminal Offense. If found, the regional PF Inspector can even arrest the employer.

22. Could the employer be punished in case the remittance of contribution by him is delayed in a Bank or post office ?

No. The Employer cannot be punished or penalized in case there is a delay in the remittance of the contribution on account of delay in Bank or post office.

23. Can I contribute more than 12% of my Basic Salary as PF?

Yes, you can. It is called "Voluntary Provident Fund or VPF". Any additional money (beyond the minimum 12%) you wish to accumulate in your EPF Account must be contributed via the VPF scheme. The money will earn the same interest as the EPF contribution and is subject to all rules and regulations that are applicable to EPF. Remember here that, any additional contribution you make will not result in an equivalent contribution from your employer. The employer's share of PF contribution will be limited to 12%

24. What is the current prevailing interest rate offered on the PF accumulations?

8.6% Compounded on an yearly basis. You can take a look at the Historic Interest Rates Offered on EPF to know how the current rates fare in comparison to history.

If you have any more queries about EPF please feel free to leave a comment in this article and I will be glad to answer them...

190 comments:

  1. Hello Sir,

    I have a question.
    I have my Provident Fund with two of my last organisations now I have got a new job so, can I transfer both of my existing PF to my new Organisations PF? If Yes, How ?

    Regards
    Akshay Sabharwal

    ReplyDelete
    Replies
    1. Yes, you can transfer both PF accounts to the new company PF account. Read this article - http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      You will get the info you need to do it. You will need to submit two transfer forms and for both forms the destination account will be your new account. That is all.

      Anand

      Delete
  2. I worked in Org from Oct-2012 to Jul-13 and deduction for pf 780/- per month from my salary and equal amount shall be paid by employer .

    After calculating total amount shall i get 15600/-. Instead of 15600 i got only 5043 as mentioned above.

    ReplyDelete
    Replies
    1. Hitesh,
      I think there is some mistake here. Firstly your full money doesnt go into PF. your contribution Rs. 780 goes fully but your employer contrib goes into PF, gratuity, EPS etc. Read the "A Sample Calculation - Of How Your EPF is Split Up and Saved: " section in the following article: http://anandvijayakumar.blogspot.com/2013/03/employee-provident-fund-demystified.html to understand how the money gets split up.

      Coming to your problem - I think you should have got a least 7800 or more since you worked for approx 10 months. Talk to your employer and try to get a statement for your PF Account or visit your nearest EPF Office that processed the withdrawal and try to find out what was missing. Are you sure the PF deduction was 780 for employee share and 780 for employer share?

      If 780 was the total deduction (Including both your and employer share), then if we consider deductions for EPS, gratuity etc, the 5043 that you got sounds about right.

      Anand

      Delete
  3. Hi
    i am leaving the current job and joining in new job and want to withdraw the pf amount and open new account in new company so that what happens to the amount transfered to pension fund account(is that will be transferd to my new account or it becomes null as i am closing the account)

    ReplyDelete
    Replies
    1. Anonymous,
      First of all, you can withdraw the PF money only if you are going to be unemployed for at least 60 days between your two jobs. If you are going to join the new job within 60 days of your last day at your old job, you need to get the PF money transferred.

      Read this article about Transfer of EPF: http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      About EPS: You need to get something called a Scheme Certificate when you switch jobs. Read this article about the EPS scheme: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Anand

      Delete
  4. hi
    My name in the pf slip appears incorrect. What is the procedure to make correction.
    I have an pf account which is inoperative for more than 3 years and I want to transfer to new pf account;kindly suggest me the procedure for the same

    Jyoti

    ReplyDelete
    Replies
    1. Hi Jyoti,

      1. Talk to your employer (Who opened the PF Account for you) and ask them to correct the mistake.

      2. Contact the employer for whom you were working when this inoperative Pf account was actually operative. You need to initiate the transfer procedure through them. Read this article about Transfer of EPF: http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      Anand

      Delete
  5. Hi,

    I have worked with organization A from 2002 - 2004. Organization has its own PF fund. Tax Slab - Not is tax slab for most part.

    Then moved to organization B from 2005 to 2006. This organization had no PF component. Strange as my CTC was over 3 Lakhs. Tax Slab 10%.

    2007 -I took an education break

    Worked with Organization C from April 2008 - June 2008 and continued education break. Tax Slab - 4 months salary Only. So not taxable.

    Worked with Organization D from Feb 2009 to August 2011. Tax Slab - 20%

    Working with Organization E from September onwards.

    I have not transferred PF from any of the previou employer. Please share if I do now transfer from all employers A,C,D to E, will that be treated as 10 Years Employment.

    ReplyDelete
    Replies
    1. Anonymous - Yes, you can transfer the unwithdrawn corpus from all of those previous employments into the current account that is active. Read this article about the same: http://anandvijayakumar.blogspot.com/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      There is no relationship between tax and the possibility of transfer. If you successfully manage to transfer all of those PF accounts into your currently active account the duration will be only for the duration when your PF Account was active. It does not go from 2002 to 2013. You had gaps in employment and so, whatever is the gab - that wont count.

      You worked 2 years for Org A, 3 months for Org C, 2 years and 6 months in Org D and now with Org E. So, once all of these PF accounts get transferred, your PF Account will be close to 5 years old (You havent specified the exact months for your Job A)

      Whatever gaps you had or in job B where you had no PF, will not count towards the age of the PF Account.

      Anand

      Delete
  6. I had resign my job three and half year before can i withdraw my old pf

    ReplyDelete
    Replies
    1. Hi Ravi - If you are currently unemployed you can withdraw the old PF money. If you are currently employed in any company that has PF facility (In other words - if you have a PF account now) then you need to get the money transferred.

      Read this article - http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      It will give you more details.

      Anand

      Delete
  7. If I withdrawl my EPF as well EPS amount after 5yrs of service, then could i get my whole/corpus EPF (employee contri.+employer contri.) & full EPS amount . What amount of EPS i will get. Plz provide me example for same.

    ReplyDelete
    Replies
    1. Abhinav,
      See this article about EP - http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      I have explained about how much you will get in case of withdrawal.

      Reg. EPF - Yes you will get the employee contrib + employer contrib + interest that has been earned over the past 5 years.

      Anand

      Delete
  8. Hello Sir,

    I left my previous organisation within one year and applied for EPF through employer.I received some amount in my bank account.
    Question:shall I get back my accumlated EPS amount?
    If yes then what is the procedure?
    If not then what would happen to that amont.

    Regards,

    Debasis Pati

    ReplyDelete
    Replies
    1. Hi Debasis - The form to withdraw EPS is submitted along with your EPF withdrawal forms. Talk to your employer and check if they submitted the EPS withdrawal request as well.

      If the form was submitted - you will get 1 month of your basic salary. EPS withdrawal is not based on the corpus accumulated in your account but is based on no. of years of completed service. For people less than 1 year service, the request may get rejected as well.

      Read this article about EPS - this will give you more details: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Anand

      Delete
  9. Hi Anand,

    I did the PF transfer from my First Company (own PF Trust) to the Second Company(under RPFC Kandivali mumbai) and received the PF amount.
    But there were not entries for EPS amount in the transfer amount section. I have document from my first company which shows they contributed to EPS, how will I claim that amount. My first company was not responding to my mails. I worked there for 42 months. Kindly suggest.

    Thanks,
    Saroj Kumar

    ReplyDelete
    Replies
    1. Saroj - EPS Money does not get transferred like EPF. You need to get a scheme certificate and transfer the EPS benefit to the new company. Read this article for more details - http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
  10. I felt like i was robbed when i checked my PF credit to my bank after final settlement. It's my bad that I joined such a cheap company. They took best use of unemployment and made me work for 7000 as starting salary. I have all the payslips with the PF contributions:
    I've joined on Nov 11-2011 and worked till Aug 2013.

    From Dec 2011- Apr-2012 they deducted 240 / month from my salary as PF

    Dec 2011-Apr 2012- 240*5=1200
    Apr2012-Apr 2013- 311*12=3732
    May2013-Aug-2013- 352*4=1408
    Total: 6332

    THis is only my contribution. Employer contribution is same as mine according to appointment letter. So, legally, I should get 12000+ interst.

    I've got 4000 rupees!!!!!!!!!!!!!

    Absolutely shocked. WHAT SHOULD I DO???
    I AM FEELING LIKE I AM ROBBED. WHOM SHOULD I CONTACT??? I m hating this!!! Please reply

    ReplyDelete
    Replies
    1. Hi - Are you sure the 4000 rupees you got was the PF? This could be the EPS because the EPS is not based on contributions. Instead it is based on number of years of service. Check this article out and you will understand more about EPS - http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      The employer contribution is not fully paid out for EPF. A Big % of the employer contribution goes into your EPF. Check out this article where I have explained the split up of where your money goes. http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Back to your Q - If the 4000 rupees is EPS, I suggest you wait for a couple of weeks until your EPF money comes. First you can reach out to your employer and find out what happened to the withdrawal request that was submitted on your behalf. they can tell you how much money should have come to you. If they are refusing to help, go to the nearest EPF Office along with all your PF contribution proof and file a fomal complaint.

      Anand

      Delete
  11. Hie,

    I want to know that i have left my previous comapany and my PF already transfred to new company now when i download my E-statement of PF there is showing Employer distribution and Employees distribution but not reflecting pension amount in transfred amount.

    Please help to find out.

    ReplyDelete
    Replies
    1. Ravi Kumar - EPS Account does not contain any money (technically). Only the years of service gets transferred not any actual money. Check out this article: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Anand

      Delete
  12. Hi Anand,
    Need your suggestion here!
    Is there any policy to withdraw partial EPF/VPF from company. Please confirm. I need to repay some loan by doing that. Pls suggest.

    ReplyDelete
    Replies
    1. Sure Fazal you can. Check this post in our blog: http://anandvijayakumar.blogspot.in/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  13. Hi Anand
    My husband have worked with a firm for the last 8 yrs...nw we are claosing the pf account and withdrawing the money.so he is not eligible for the pension right? Thn what about the employers contribution to the pension scheme.will him get it?

    ReplyDelete
    Replies
    1. The amount you get from EPS is not based on contributions from your husband or the employer. It is based on last drawn basic salary and no. of years of exp.

      Read this: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Delete
  14. Hi Anand,

    I Have worked in a organisation for 8 years i.e May 2005 to August 2013 with a PF Account. I had taken a break for 4 months now i have joined in a company which is not registered with EPF if i work for the current company for another 2 years and join a company later with EPF and complete 10 years service as per EPF will i be eligible for Pension pls suggest my focus is on Pension.

    ReplyDelete
    Replies
    1. Anonymous - Yes, you wil be eligible for pension if your PF and EPS accounts are held active for a consolidated period of at least 10 full years. In this case, you need to get a scheme certificate from your old employer and submit the same to your new employer (who you will be joining after 2 or 3 years). Once you do that, and finish the transfer of EPF money formalities, your experience from a PF and Pension perspective will continue on from where it was left when you resigned in August 2013. And, when you retire you will be eligible for pension via the EPS Scheme if you can complete the formalities.

      Read this article about EPS: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Delete
  15. hi,
    i left my previous company in December 2013 without giving proper intimation & i didn't get any relieving order from my previous employer. at present(march 2014) i have joined in new company..is it possible to transfer my pf account to present employer without the help of previous employer? or do i need to get any signature from my previous employer for transferring of my pf account?

    ReplyDelete
    Replies
    1. Anonymous - read this article. It will answer your question

      http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      Delete
  16. Hi Anand,

    Hope you will help me out, It's more then one year since i am trying to get my PF from my old employer. I worked in a organization from 06-Sep-07 to 07-Sep-09. Right now i am doing advance studies in bangalore and i am jobless, So i applied for the EPF through my company by sending them all doc's. But they didn't fwd the doc's to EPFO, and told me that it's under process. In Oct-13 they said the form has been rejected after taking so much follow-ups. So i sent all the documents again and they submitted the documents on Feb-28-2014, And in conformation they sent me a mail in which there was a stamp of receiving from EPFO dated 28th. And again now it's more then one month i didn't got any update regarding the EPF neither on EPF nor i got any message, So i made a query in EPFO grievance portal, In reply they are saying they haven't received any claim form. But i have the scanned receipt ( Form with the EPFO stamp) i sent them the receipt but got same reply. Now employer is saying they have submitted and EPFO is saying they haven't received it. I am in Bangalore and my EPFO is in DELHI, I am unable to understand what to do and how to the money. Hope you will help me out someway.

    Thanks & Regards,
    Shivesh Kumar

    ReplyDelete
    Replies
    1. Shivesh - First try to raise a Grievance with EPFO and submit that document with EPFO Stamp as per the steps here: http://anandvijayakumar.blogspot.sg/2013/04/can-i-get-my-epf-related-grievances.html

      If that doesnt work - use the RTI and check what is happening as per the stps here: http://anandvijayakumar.blogspot.sg/2013/04/what-options-do-i-have-if-epfo.html

      Sorry for the trouble but since it is a government department, this is how you can proceed. Alternately you can visit the delhi EPFO in person but since you cant do that, this is the best alternate. If neither of these works, then you have no choice but to visit delhi pf office to sort things out.

      Delete
    2. Thanks for the help, I will file an RTI for the same.

      Delete
  17. Hello Anand

    Hope you will help me.
    My name is Gaurav Chandra, I worked in an organization for bout 1 and a half year and had a good amount of PF. But when I left teh organization, some issues were created, due to which I was absconded and there ia a recovery amount on my name. I paid my basic salry to obtain ex xertificate. Is there a way to get my pf....i need it...or can i get it without employers intervention in any way......

    ReplyDelete
    Replies
    1. Gorav - Are you presently employed? If so, you cannot withdraw the money, you need to transfer the money in ur old pf acc to your present account.

      You will need to get in touch with our old employer to get his concurence because when you initiate the transfer their signature and approval will be required. Check out this article: http://anandvijayakumar.blogspot.sg/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      There is an option in this article which you can use to get the money transferred without interference from your employer but that is only applicable if your company is closed out or shut down

      Delete
  18. I left Organization in 2008 and still I don't receive the PF ...I have filled the PF form and send to organization...even in my PAY Slip they don't give the PF number ..but PF was cut by the organization ...so what to do ???

    ReplyDelete
    Replies
    1. Try contacting your company again. If they are not cooperating try raising a grievance and if that desnt work try the RTI

      http://anandvijayakumar.blogspot.sg/2013/04/can-i-get-my-epf-related-grievances.html

      http://anandvijayakumar.blogspot.sg/2013/04/what-options-do-i-have-if-epfo.html

      Delete
  19. Thanks, I have no plans of working further,even then I can't withdraw my EPS.

    ReplyDelete
    Replies
    1. Yes, even then you cannot. You need to wait until you hit the retirement age. Read this article: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Delete
  20. Hi,

    Do we get any receipt or any kind of proof to know whether my current organisation has submitted Form 13 to EPFO office?
    My PF transfer is stuck since 2010 and not yet happened.Its not getting reflected in my E-Passbook of PF as well.

    ReplyDelete
    Replies
    1. Yes, you should get a notification. Try contacting your old office and get the details/dates of when it was submitted.

      If that doesnt work - Try raising a grievance or filing an RTI

      http://anandvijayakumar.blogspot.sg/2013/04/what-options-do-i-have-if-epfo.html

      http://anandvijayakumar.blogspot.sg/2013/04/what-options-do-i-have-if-epfo.html

      Delete
  21. hi, i left my job in 2011 but still my employer not clearing my provident fund. plz suggest me some solution on same. i had given them my signature cheque and form 11 something but still not got the any answer from them..

    ReplyDelete
    Replies
    1. Try raising a Grievance first and if that doesnt work, use the RTI.

      http://anandvijayakumar.blogspot.sg/2013/04/can-i-get-my-epf-related-grievances.html

      http://anandvijayakumar.blogspot.sg/2013/04/what-options-do-i-have-if-epfo.html

      Delete
  22. Hi Expert,

    My PF account is active since 1 October 2011,But I left the job in December 2013 for further study ,So my account is in inoperative since then.Below is my pf account summary on June 2014 :

    Closing Balance as on : 30/04/2014

    Employee Share : 49642

    Employer Share : 33018

    Pension Fund : 14878




    Due to financial need, I want to withdraw that now... how much amount will be deducted as tax? How much amount I'll get?

    Please answer ASAP so that I can take my decision accordingly.

    Thanks in advance.

    ReplyDelete
    Replies
    1. Lalit - First of all, Pension Fund balance will not be returned to you. The amount you get will depend on your last drawn basic salary and the no. of years of service. Check out this article: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      For PF withdrawal - TDS deducted varies from case to case and is usually around 10% or 15% of the balance withdrawn. However, the actual tax amount is different. Here, your EPF Balance is Around 82k and this will be added to your income for this financial year.Lets say your income for this year is 5 lakhs and you withdraw this money, your total taxable income for this year will be 5.82 lakhs. If you arent working anywhere right now, this money is less than the annual minimum exemption limit and you wont have to pay any taxes. In such a case, if the PF Office deducts TDS, you can still file a NIL Tax Returns and get a refund of the money they deducted as TDS.

      Delete
  23. DEAR ANAND JI,
    I AM WORKING AN MNC COMPANY WITH 11 YEARS AFTER MY JOB HOW TO GET MY PENSION ( FUND) PLZ TELL ME

    ReplyDelete
    Replies
    1. Anonymous, Pension Fund balance will not be returned to you. The amount you get will depend on your last drawn basic salary and the no. of years of service. Check out this article: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Once you retire, you can fill-up the requisite forms and submit them to the EPF Office and they will process the pension and make payments each month.

      Delete
  24. Hi Sir

    i was working with one beurocratic company in noida and i have resigned from there they didnt accepted not rejected my resignation.
    now they are not even paying my full and final and PF as well. what options i can follow please give me some advise.

    ReplyDelete
    Replies
    1. Consult a good lawyer who specializes in labor laws. They can help you

      Delete
  25. HI SIR,

    MY PF IS DEPOSITED IN ANOTHER ACCOUNT OF EMPLOYEE OF MY COMPANY INSTEAD OF MY PF ACCOUNT.I AM FACING LOTS OF PROBLEMS.NOBODY IS HELPING ME FROM MY COMPANY SIDE.WAT SHOULD I DO TO RECTIFY THIS MISTAKE. PLEASE HELP ME

    THNX

    RAJ KUMAR

    ReplyDelete
    Replies
    1. Raj - Your employer is the best person to help you. They can produce the requisite records to prove to the EPF Department that the money got credited into someone else's account. If they arent helping, visit the regional PF Office where your account is maintained and explain the situation to them. They may be able to help you

      Delete
  26. Dear Sir,

    I working with an organization for 1 years, from aug 2013 to till date but when m cheking pf online not display my pf balance display error on the screen (Invalid Input / Member name mismatch against this MH/BAN/0043576/000/0000737)

    Please clarify my doubt.

    Regards
    Sanjay

    ReplyDelete
    Replies
    1. Sanjay - The EPF Website is not up to date and there are numerous cases where relatively new accounts (that opened in 2013 or later) are not found in the site. Check with your employer to double confirm the PF Acc number and if the number you used is right, then you can check out after a few months to check if they have updated their records.

      Delete
  27. Dear Sir, can you please mention what is the maximum amount of money that an employee earning above Rs.6500 per month can contribute to his/her EPF account?
    And then suppose a person deposits Rs.1500 to his EPF account, will his employer contribute the same amount i.e. Rs.1500 to his account?
    Lastly, what is the possible growth rate in contribution to EPF account per year if an employee starts working at 24 years of age and retires at 60?

    ReplyDelete
    Replies
    1. Anonymous - See answers.
      1. No, there is No upper limit. The amount you contribute (Min/Max both) is 12% of your basic salary
      2. If 12% of your basic is 1500, your company will also contribute 1500. Read this to understand the breakup of where your money goes: http://anandvijayakumar.blogspot.com/2013/03/employee-provident-fund-demystified.html

      3. How much your EPF grows depends on how your salary grows. If you earn 1 lakh per month you will contribute 12000 from your side and another 12000 from your employer side. Depending on how much you contribute, your end amount would vary.

      Anand

      Delete
    2. Thank You so much

      Delete
  28. Hi Anand,
    I left the company without serving notice period,currently I am unemployed.My employer refuse to sign on pf form & they are not forwarding to pf office.I have contacted to them. they asked Rs 5000 as recovery amount.I dont know what to do now.Can I take regional pf help or can i submit pf form directly to pf office.
    Please advice

    ReplyDelete
    Replies
    1. Sandeep, even if you submit the forms to the regional pf office, they will ask for your employers stamp and signature to confirm that you indeed worked with them during that period (as you claim). I would suggest you talk to your employer and settle the matter amicably.

      Note: In cases where the employer does not cooperate for PF withdrawal, you can actually file a legal complaint against them using a lawyer but in your case, since you did not serve your notice period, the case may backfire because the company too could sue you for leaving them abruptly. The best course of action for you is to settle things smoothly.

      Delete
  29. I was working in a company from jan-13 to Aug-13 and left then i joined another company.....now when i am trying to check my balance from epfservise.in site..its showing very less amount and showing like accounts updated upto 31-03-2013......so plz suggest.

    ReplyDelete
    Replies
    1. Chinmay - The epf website is not up to date and backlogged by at least a few months. If you want the latest balance, talk to your employer

      Delete
  30. sir i forgot that what signature doing in the epf so what i doing

    ReplyDelete
    Replies
    1. Do you mean, you dont remember what signature you used while opening an EPF account? Just use your current signature and if a query comes you have to prove that the old signature was indeed yours.

      Delete
  31. sir, i resigned my job in 2010 and i claim withdrawal in 2014. will i get interest for the 4 years?

    ReplyDelete
  32. Hi, there has been a mistake in the relationship details of my current PF account as a result I'm not being able to transfer my previous employer's account to current one. While my previous account had my father's name and relationship was rightly assigned as "Father", in my current PF account details, my husband's name has been provided and the relationship is still assigned as "Father". Please provide your suggestion on how to rectify this so that I can tranfer my account. Thanks.

    ReplyDelete
    Replies
    1. Anonymous - You will need to first ask your current employer to update your particulars correctly. Once that is complete you should be able to finish the transfer. Your employer should have the requisite forms that are needed to be filled-up to get the relationship status updated.

      Talk to your HR department

      Delete
  33. Hi Anand VijayKumar,

    I Have a question, Let me explain my situation.
    I have worked with a company ABC and left in the year Dec-2006 and joined with DEFin Dec-2006, and i have applied transfer of PF from ABC to DEF, dont know whether it has been transfered , and i left DEF and joined Company GHI in the year June 2007 and and i have applied transfer PF from DEF to GHI, not sure whether it has been done, i left GHI in the year 2009 and joined with company JKL in the year 2010, this time i didnt transfer or i didn't with draw,
    Now i have two questions :-

    How to know know whether all the PF"S have transfered into the account of GHI PF Account?
    Can i transfer or WIthdraw PF money of GHI Account ? What is the best option to get the PF money that got accumulated in GHI PF Account?

    ReplyDelete
    Replies
    1. Sathya - You cannot transfer money from an inactive account into another inactive one. Are you employed right now? IF not, you can withdraw from all these PF Accounts but there is a catch - since all these employments lasted less than 5 years each, you have to pay tax on all of the withdrawals. plus, you can only withdraw if you are currently unemployed.

      If you are presently employed, transfer all the money from all of these accounts into your currnt pf account and then try any of the legitimate withdrawal reasons to get your money. You can check out the legit reasons here: http://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  34. My organisation is deducting PF from my salary for the past 2 days but the organisation is not having an account with the PF office. When contacted my office they say they are in the process of creating the PF account.

    What should i do now since the amount deducted from my salary has not been deposited?

    ReplyDelete
    Replies
    1. 2 days? Usually opening an account takes about 2-3 weeks and if your employer remits the money properly, you will get interest from the date the money was remitted. So dont worry about it.

      If after 2 months ur account is not created and they are still deducting pf money, then talk to the epf office about next steps or consult a good labor lawyer

      Delete
    2. Sorry Sir its a typo error. Its been 3 months. The company is deducting PF but has not created any account with the PF office.

      Delete
    3. If it has been 3 months, there could be a problem. Talk to your employer and find out what is delaying things. IF they dont respond properly, visit your nearest epf office and inquire about your options. you can also consult a good lawyer who specializes in labor laws. They can help you

      Delete
  35. Hi, I am employee of one of the private company. But don't have 20 employee strength but also company started PF very less amount deduction by taking request from PF office. Can I increase PF amount more than current deduction?

    Another Question: If suppose company has less than 20 employee and company not deducting PF. Then in that case, can employee start PF deduction individually from PF office?

    ReplyDelete
    Replies
    1. Hi - No, you cannot change the amount. The amount is usually 12% of your basic salary. If your basic salary is 10000 then you can contribute only 1200 into PF. You can consider VPF - voluntary provident fund instead.

      No, you cannot open an individual pf account without your employers commitment. The money has to be deducted and remitted by your employer. you cannot transact directly with a pf acc.

      Delete
  36. Hi... I work as a contract employee in an overseas Embassy situated in Chennai. I am not eligible for Bonus or PF. I am paid a consolidated amount per month. My salary would get revised as per the 'Pay Commission' notified by the Central Government once in 10 years. But, however, there would be a small DA revision in my salary for every 6 months. Foreign staff at this mission are 17 and Local Indian staff are 10 members. My question is, Will it be possible for me to open a PF account in my name and remit the monthly contribution in the PF office? Else, what are the other options I have for remitting little money every month and get the same benefit of having a PF account? Kindly clarify.

    ReplyDelete
    Replies
    1. Anonymous - No, an individual cannot open a PF Account by himself. Only his/her employer would have the rights to do that. You can consider PPF and other safe investment options. Note that PF is very peculiar and there is no other investment that matches the PF. I have published a book on safe investment options in India which you can consider. check it out here: http://anandvijayakumar.blogspot.sg/p/books-by-this-blog-author.html

      Delete
  37. Hi Anand,

    I need your assistance on below mentioned points:

    1.Can existing employees open a new PF account in middle of the service.What is the process for them?

    2. Should we create a policy that we will be deducting PF only once an employee completes 6 months with us? -To avoid PF work load of employee,who resigns/leave before 6 months.

    ReplyDelete
    Replies
    1. Harish,
      No, an employee cannot open/close their PF Accounts in the middle of their service. The account gets opened when an employee joins and is closed when they leave. The only deviation with respect to opening an account is permissible when the company doesnt have enough employees for being eligible to have PF accounts and attains the eligibility after a few months. At that point you can open an acc for all employees.

      You can check with the PF office about Q no. 2 because based on my knowledge, you are expected to open a pf acc when you join a company. You cant wait 6 months to do so.

      Delete
  38. Dear Anand

    Can a employee directly submit his/her application to withdraw the PF amount without indulging employer in it..

    If yes then what's the process ?

    ReplyDelete
    Replies
    1. Rakesh - If the company is still operational/functional - NO. It is not possible. If your company is shutdown/closed off permanently you can visit the regional EPF Office and inquire the formalities

      Delete
  39. hi, How much time does it take for payment after getting this msg?
    AGAINST Member Account No (xxxxxxxxxxxxxx) has been approved. Payment is under process.

    ReplyDelete
  40. I worked in my previous company till July 2009 and joined the present one in July, 2009 itself. I applied for epf transfer in 2010, but it did not get transferred. Initially I did visit epf office quite often but later on due to preoccupation I did not get the time. Recently when I again visited epf office they asked me to submit the transfer form again as the earlier one was not traceable. I submitted the new form and this time my epf got transferred. But my account has been credited with only interest upto 2012. I was told that as my account may inoperative I will not get interest for 2012-13 and 2013-14. My questions are 1) What is the way out to get full interest upto 2014, 2) How can I get my pension account transferred ( had rendered 10 years of service in my previous organisation and 5 years in the present one) and 3) where will the information of pension account be reflected. Thanks
    G. Singh

    ReplyDelete
    Replies
    1. Gurmeet - see answers:
      1. Unfortunately, a PF Acc stops earning interest after being idle for 3 years. So, there is not much we can do here. You can try filing a grievance with EPF office and highlight the fact that you submitted the forms on time. But, since your original request is untraceable, most likely the complaint will be closed stating that the request wasnt received on time.

      2. You can obtain something called a "Scheme certificate" for your EPS contributions and once you submit that to your new employer, your total experience as per eps wll be 15 years. As your PF is already transferred, there is a 99% probability that your EPS experience also got transferred.

      3. Your employer will be able to find out the information with respect to your PF or EPS experience. There is no centralized location for us to find out by ourselves. Talk to your current employer and they can find it out for you.

      Delete
  41. Sir I need clarifications on the below mentioned queries.

    1. Is the ceiling limit for PF has been increased from Rs.6,500/- to Rs.15,000/-? If yes from when it becomes applicable?

    2. If the basic salary of the individual is less than Rs.15,000/- say its Rs.10,000/- pf will be calculated on 15k or 10K?

    ReplyDelete
    Replies
    1. Anonymous - The PF ceiling rule is already in force. The amount considered for PF will be Rs. 15,000 or your Basic salary - whichever is lower. So, if your basic is 10k, your PF will be calculated based on that only.

      Note: 15k is the minimum upper threshold but if your company is willing, they can contribute 12% on your basic even if it is 50k.

      Delete
    2. Can you specify the date from which the became applicable or it came into force?

      Delete
    3. I think it came into force 1st April 2014

      Delete
  42. Hi Anand , I need your help in clarifying this . I worked with previous employer for 5 years and 8 months after which I joined another company and worked with them for 4 years and 4 months. Technically I have completed 10 years with 2 employers . I did not transfer the PF accumulation and at the same time I have not withdrawn the previous PF . currently I am on a sabbatical since one year . can I transfer my PF of the first employer to the current PF account though I have left the organisation. how would I be taxed . Hope my PF will not be taxed as I have not withdrawn PF from previous employer . hope you can clarify... would be grateful

    ReplyDelete
    Replies
    1. By sabbatical - you mean unpaid leave or you have left your job and are taking a break now?

      If you are currently employed (but on leave/sabbatical) you can initiate the transfer of your old PF Acc into the current one and then initiate a withdrawal once you resign from your current job. If you want to pursue this route - when you actually withdraw, you wont be able to withdraw your EPS because technically you have completed 10 years of service and have to wait until retirement age to receive the EPS Pension. However, the EPF withdrawal will be tax free.

      If you are currently unemployed, the transfer is not an option because the current PF Acc is no longer active and is also inactive (like the old one). So, you would have to withdraw both accounts separately. Note here that, the first job pf withdrawal will be tax free since you completed 5 years but the most recent job you quit that would be taxable since you did not complete 5 years.

      Note: If you plan on taking up a job in the near future, you can just withdraw the first job pf and then transfer the current pf account once you take up the new job to help with taxation.

      Hope this clarifies.

      Delete
  43. Hello Sir,

    I am changing job and moving to US. But I would like not to withdrw my EPF and keep it intact, will this work so that once I am back I can transfer it to another company, or can I withdrw all the money and put in PPF. Please suggest.

    Regards
    Mohan

    ReplyDelete
    Replies
    1. Mohan - Your Question has 2 parts.

      1. Yes, you can leave your EPF and transfer it to another company once you come back to India (in the future). Just remember that your PF account will stop earning interest. you also need to consider how cooperative your old employer would be in the future when you want them to finish the transfer formalities. Most companies are professional and will help its ex employees but just make sure to get this commitment from them.

      2. If you havent already joined your job in the US, you are still a resident indian and can open a PPF Account however, by the time your pf money comes (if you decide to withdraw) you would be an NRI and will not be eligible to open a PPF Account. Note here that, the money you put into PPF has a lockin period of 15 years plus this cannot be transferred onto your new pf acc when you come back to india. To learn more about PPF you can check out my new book titled - Safe Investment Havens. Read a preview of the book here: http://anandvijayakumar.blogspot.com/p/books-by-this-blog-author.html

      Delete
  44. The company has been deducting PF for the last 4 months( April to July 14) without account being created. The company intends to deposit the full money only now for the last 4 months and are obtaining nomination forms and other details from us. When will the interest component start? From the date of deposit or from the month from which PF is deducted( April onward)? I should not be loosing interest for no mistake of mine. Request you to throw clarity on this issue.

    Thanks in advance.

    ReplyDelete
    Replies
    1. Anonymous - Yes, I agree that you are losing out on interest for no fault of yours but, usually the PF office will pay interest only from the date accounts got opened. You can talk to your company to check if they can compensate you for the lost interest over the 4 month period.

      Delete
  45. Dear Sir

    I am nidhi worked for an MNC for 2 years and resigned six months ago .
    I started a small company with one of my friend & now thinking of withdrawal of PF
    Do i need to submit Partnership deed?I am eligible for withdrawal??
    Please answer

    ReplyDelete
    Replies
    1. Hi,
      Yes, you are eligible because you are no longer employed - as an employee of another company. However, remember that this withdrawal will be fully taxable. No, partnership deed is not required. Just talk to your old employer and fill-up the requisite forms.

      Anand

      Delete
  46. Is it ok to pass or file an resignation letter on the exact date that youre going 10yrs in your company?

    ReplyDelete
    Replies
    1. Sure, I dont see any reason as to why you cannot. Why?

      Delete
  47. Hi Anand;

    I am working in a MNC from past 12 years( Oct 2002-Present). I require your valuable advice for the following in discrepancies seen in my latest epf pass-book.
    1. The entries start from year April 2009 with the previous balance being carried forward of which I have no detail.
    2. Interest capitalised for the year is 7.5%.
    3. Interest capitalised for the year 2010 is 8.58%.
    4. Entries from April 2011-March2012 are completely missing.
    5. Even interest has not been mentioned.
    6. Entries for the year 2012-2013 have been mentioned, but interest is not mentioned in it.
    7. Entries from April 2013- Sept 2013 have been only mentioned, even though i downloaded the latest pass book pdf today.
    Moreover, the calculations and balance according to me are not matching with the one mentioned. Kindly suggest me what should I do and whom should I contact?

    Thank You in advance for sparing your time.
    Atul Malik

    ReplyDelete
    Replies
    1. Atul - There have been numerous complaints about the epf website and the particulars shown there. Talk to your employer and ask them to generate a detailed pf statement. This should have details of the contributions (including the interest) and if you see any discrepancies, you can file a complaint to the epf office through your employer itself.

      Delete
  48. Hi Admin,

    I have joined in ABC company on 19th June 2014 and got relieved on 31st July 2014... can i get my PF amount ? and till what time ? and what is the procedure for that ?

    ReplyDelete
    Replies
    1. Yes you can get ur PF Amount. You can get it any time you want. Procedure is to fillup the withdrawal forms, get them attested by your employer and submit it for withdrawal.

      Delete
  49. Hi Anand
    Can a PF account to be transfer in company A to Company B.....without the taking help of company A?

    ReplyDelete
    Replies
    1. It depends Rakesh. Read this article: http://anandvijayakumar.blogspot.com/2012/10/can-i-transfer-my-pf-account-to-my-new.html

      Delete
  50. Hi sir
    I received a settled amount msg from pf office but my account balance says nill if I pf status it says payment has been settled through NEFT. When I check my account there is no amount deposit plz hhelp me

    ReplyDelete
    Replies
    1. Anonymous, usually there is a 2-3 working days delay between the message and getting the money.

      Delete
  51. hello ushma here,
    my question is.. i had pf account in the firm and was working from 2009 to 2014 and have resigned now. i am not working anywhere.
    is it necessary for me to withdraw the amount or is it ok if i do not withdraw it for 6 to 8 months?
    wat do i do

    ReplyDelete
    Replies
    1. You can withdraw anytime you want. However, just remember that the longer you wait, the harder it will be for you to get your old employer to help you finish the formalities. So, it is better you do it ASAP.

      Note: If your total working tenure was less than 5 full years, the amount you withdraw will be taxable.

      Delete
  52. Hi Anand Sir..

    My name is Jayasree.. I have few queries regarding "name" to apply PF.

    I have worked in private organization. My name appears in payslip as "Jayasree Sreepathi" ; I have savings bank a/c with name "Sreepathi Jayasree"

    In this case is it compulsory to match both the names (name in payslip with bank a/c)? I dont have any other bank a/cs with the name as in payslip.. Now do I need to open another new bank a/c with the name as in payslip?
    and
    while filling the form, do I need to write the name same as appears in payslip?

    Kindly reply.. thanks..

    ReplyDelete
    Replies
    1. Hi,
      Usually first/last name swap is not an issue at all. Jayasree Sreepathi or Sreepathi Jayasree should not be an issue. However when you fill up the forms they must match as you entered as per your PF Account records. yes, the name in your pf account and payslip is usually the same.

      Anand

      Delete
  53. Can i keep opened my PF a/c after early resignation . If yes, then what are steps to take.

    ReplyDelete
    Replies
    1. No Pankaj, you cannot keep your PF Acc open after resignation.

      Delete
  54. Hi anand , My company maintains a PF trust , however my middle name is missing in the pf trust , can that be an issue during the pf withdrawal ? As my salary account has full name mentioned

    ReplyDelete
    Replies
    1. Yes, the name in the pf account and the bank account has to match exactly. Get the name updated in your pf account.

      Delete
  55. Hello Anand,

    I just received some credit in my account from the PF office but it seems like they have deducted 50% of my amount. The backdrop of it all is :

    2 PF accounts, 1 from company A and 1 from Company B.

    Worked in Company A till April 2013 - Total Amount - EE Rs. 87155, ER - Rs. 71392.
    Worked in Company B till April 2014 - Total Amount - EE Rs. 59861, ER - Rs. 53988

    I had the PF transfered from compay A to B after moving. So total amount at the end of term in Company B is Rs. 2,72,396.

    Amount Recieved by me is 1,37,186 in 2 payments one for 1,30,000+ and one for 6,600+

    I do not know if they have deducted nearly 50% from my overall PF or if they just paid the PF of company A. I am currently unemployed, so any of my hard earned money coming back to me would be of benefit.

    ReplyDelete
    Replies
    1. how many years did you work? did you withdraw your EPS and Gratuity also from your company B when you resigned? Firstly the PF office does not send part payments. they will send it in full. secondly, even if they deduct TDS it would be about 10% or 20% of the money and not 50%.

      So, I think this amount you got is either EPS or gratuity. Talk to the HR Department from company B and find out what is the status of your PF withdrawal.

      Delete
  56. Sir, In my PF Account, my name has Spelling mistake. So i wrote many letters and e-mails to the concern department in my Head office,Mumbai but so far no action taken by them and almost i have completed 6 years in the organisation. So now what i can do?? Can i write the letter directly to the PF office in Mumbai? Because of this Spelling mistake will any problem will occur in the future. Please help me out sir.

    ReplyDelete
    Replies
    1. Yes, the spelling mistake will have problems when you want to withdraw or transfer your pf. Talk to your employer, they can help you update your details.

      Delete
  57. Hello Sir,

    I want to withdraw money of PF. Now the problem is that my PF Account number carries different name and my bank account carries my maiden name. How will i be able to withdraw the money without any hassles? Could you please suggest? What all documents do i need to submit.

    ReplyDelete
    Replies
    1. Hi - The name has to match exactly - As-Is between the PF Acc and Bank Acc. If the bank acc carries your maiden name while PF acc has your present sur name, you need to get your bank account details updated first.

      Once you update your bank acc info, just follow the standard procedure to withdraw your PF, it should be fine.

      Delete
  58. Sir,
    I work in a private organization for Rs. 7500, out of which 6000 is credited to my salary account and the remaining is contributed towards EPF. I have been doing this since September 2013. Recently I checked my EPF through online. This is my statement.
    Transaction Date Deposits Withdrawls Diverted to Pension fund
    Employee Share Employer Share Employee Share Employer Share
    1-09-2013 720 220 0 0 500
    1-10-2013 720 220 0 0 500
    1-11-2013 720 220 0 0 500
    1-12-2013 720 220 0 0 500
    1-01-2014 720 220 0 0 500
    1-02-2014 720 220 0 0 500
    1-03-2014 720 220 0 0 500
    31-03-2014(Interest) 110 34 0 0 0
    1-04-2014 720 220 0 0 500
    1-05-2014 720 220 0 0 500
    1-06-2014 720 220 0 0 500
    Total 7310 2234 0 0 5000

    After going through the statement, I have come to know that the EPF calculation is being done on 6,000 instead of 7,500. Below is my assessment.
    My Basic Salary is Rs. 7,500/-
    12% of Basic Salary is Rs. 900/-
    3.67% of Basic Salary is Rs. 275/-
    8.33% of Basic Salary is Rs. 625/- which is higher than the limit of Rs. 541/-
    So, Employer will contribute Rs. 541/- towards EPS
    and 359/- towards EPF (Rs. 275/- + Rs.84)
    But the statement tells that my actual salary is Rs. 6000 not 7,500 because
    12% of 6000 is Rs. 720/-
    3.67% of 6000 is Rs. 220/- (EPF)
    8.33% of 6000is Rs. 500/- (EPS)
    I am unable to understand this. I request you to help me in this regard.
    Thank you.




    ReplyDelete
    Replies
    1. Anonymous, as per our laws, for anyone whose Basic salary is greater than 6500 rupees, the employer has an option to select that 6500 as the number for calculation of PF benefits. I think there is a slight misunderstanding here. the 12% is calculated either at your basic salary or Rs. 6500 whichever is lower. Back in 2013 what was your basic salary? was it greater than 6000 rupees? Anyways, if you feel the amount deducted is not correct, talk to your employer and understand why the discrepancy.

      Delete
    2. Sir,
      Thank you very much for your reply. My starting salary was and my current salary is 7,500. For first couple of months i received full salary i.e. 7,500 through bank account. After two months they told me about this P.F. and said that i could contribute within the range of 500 to 1500 every month. They didn't inform me about this 12 % of basic salary and also about the share of employer. So, I opted to contribute 1500 per month. I have been getting 6000 per month after joining EPF. As it is clear from the statement that the employer is contributing 720 , I doubt that they are contributing their share from my share of 1500. Am I being cheated ? Please clarify my doubts. I would like to talk with the employer, but before that i want your advice.
      Thank you.

      Delete
    3. Anonymous - I dont think your basic salary is 7500. I think your employer readjusted your basic salary to 6000 rupees in order to calculate PF because companies can choose the employee's basic salary or Rs. 6500 whichever is lower to calculate the PF contribution number.

      Do you have the offer letter you got from your employer when you took up their job? Yes, in most private companies the employers share is also added as a package/benefit to the employee. So, you feel the employer isnt actually putting his side contribution frm his pocket. These guys usually add their PF contribution to your CTC package. Its perfectly legal if they mention the amount they are contributing from their side in the offer letter and you are aware of the same.

      Best wishes
      Anand

      Delete
  59. Hi Anand,

    I worked in a XYZ Company for two months (Jan 2014 - Feb 2014). I absconded from that company due to various reasons. I've joined a new company this month. (Aug 2014). I have several doubts,

    1) Will I have an UAN ID?
    2) Since my previous account was already closed by my previous company, will there be any clash in creating a new one by my current organisation?
    3) Should I inform about this situation to my current organisation? (which might possibly get me fired)?

    ReplyDelete
    Replies
    1. See answers:
      1. You will get a UAN if you have an existing pf account that is active or you are opening a new pf account now
      2. An old/closed pf account will not have any issues with creating a new pf account
      3. Its always better to disclose the truth. See, not disclosing previous employment information to your current employer might result in you getting fired in future if they find out. So, this is something I cannot advise. Maybe you can talk to someone senior in your organization and take their advise.

      Anand

      Delete
  60. Hi,
    I understand that if we withdraw pf money after 5 yrs of continuous service, this amount is non taxable. I completed 5 yrs and 6 months of service. However, i have a gap of 1 month in this service. So, my serivce is not continuous but my PF contribution has crossed 5yrs. so, in this case also will my pf amount be taxable. Thanks in advance for your reply

    ReplyDelete
    Replies
    1. No, I dont think so. If your PF Account received contributions for at least 60 months (5 years) then your withdrawal will not be taxed.

      Note however that you cannot/should not withdraw while switching jobs. You can do so only if you are taking a break of at least 3 months and will be unemployed during that period.

      Delete
    2. Thanks for the reply. I am presently employed. my brother's marriage is in 2 more months. will I be able to withdraw my PF amount showing my brother's marriage as reason.

      Delete
    3. Mahesh - Read this article. You can find the legit reasons for which you can withdraw from your PF, how much you can withdraw and the eligibility criteria

      http://anandvijayakumar.blogspot.com/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  61. Hi Anand,

    I am working a Delhi Based Ltd company from past 7 years, I joined in July - 2007 after 06 months got confirmed and after an year increment.

    Please provide details what all benefits of PF i can ask for, or if anything else i can ask for,

    As the company has never informed about any employee rights.

    Thanks
    Kavish

    Thanks in advance for your reply.

    # I read in previous comment that an employee is eligible for pension after working for 10 years, Does it implies in every pvt or ltd company.

    ReplyDelete
    Replies
    1. Kavish - The benefits you can avail vary from company to company and frankly speaking I cannot generalize on the same. Read your job offer letter to see the benefits/rights you have, as an employee.

      If your company had PF facility, they would have most likely started a PF Account in your name already. If they have not, I highly doubt if they offer PF facility. you can talk to your HR Department and check if they offer EPF and EPS benefits.

      The pension term you read refers to Employee Pension Scheme - EPS, which is a part of the EPF benefit. Unless you are explicitly enrolled into EPS and make contributions each month, you will not get any pension. Read this article: http://anandvijayakumar.blogspot.com/2013/03/how-much-pension-will-i-get-through.html

      Anand

      Delete
  62. Hi Mr. Anand,

    As the EPFO is now issuing a UAN for the employees which I think will remain same in any company you switch......my question is I worked in an organisation for 22 month then I left.....without serving notice period. And now my previous organisation is not releasing my pf amt......so I want to know under this UAN facility can my last companies PF amt be merge automatically....or the previous organisation still would have role to release the same .

    Thanks
    Rakesh

    ReplyDelete
    Replies
    1. Rakesh - The whole UAN thing is very new and hence nobody is sure how the UAN thing will work in future when someone quits a job without notice and takes up a new job. However, one thing I feel is that, nothing will happen automatically about existing PF Accounts. Unless your employer signs you up for the UAN scheme, I dont think your PF Account would get merged into the new UAN.

      Delete
  63. Dear Sir, I worked for a MNC company for 3.8 years and got transferred to another country in the same company. Presently I am not getting Indian salary and my PF contribution stopped in 3.8 years. I did not with draw it immediately , now 2 more years have past. If I withdraw now will they deduct tax.

    ReplyDelete
    Replies
    1. Yes, it will be taxable because for tax calculation purposes the age of your PF Acc is 3.8 years and any withdrawal done on an account that is less than 5 years old is fully taxable.

      Delete
  64. SIr,
    I worked for 23 days in a company and resigned. My PF acount was created. Now I am planning to join another firm and opening a new PF account. So will the old account create any issue in the future?
    Can I jus leave it without closing it?

    ReplyDelete
    Replies
    1. Yes, You can leave the account as it is and it will be automatically closed when monthly contributions dont happen every month.

      Note: If there was a PF contribution that happened, if you want it, you need to follow the proper channel and get it transferred. Otherwise the money in that pf account will be lost. You will not get it.

      Delete
  65. Sir ,

    My form 19 and form 10C status says application has been approved and payment is under process.
    How long will it take to for the money to be credited into my account after this status?

    ReplyDelete
  66. Hello Sir,

    I have submitted form 19 and 10C two months before, but when i check the claim status in 'epfindia.com' it is showing 'No Records found'.
    What can i do now? Help please. Thanks

    Sooraj

    ReplyDelete
    Replies
    1. epfindia website is usually backlogged and not up to date. Talk to your old employer and ask for a status of the request.

      Note: Your withdrawal request will be picked up for processing only after 90 days of submission to ensure people dont withdraw while switching jobs. So, maybe you can wait for a few more weeks before trying again,

      Delete
  67. Hi...
    I have worked in a company since 13th march 2014 to 16 aug 2014. They have deducted 720rs per month. The salary payment cycle is 24th to 23rd.

    My question is am I eligible to withdraw my pf? I have resigned and got releaved as per the company norms.


    Is it compulsary to work 6 months in the organisation to get the pf?

    Thanks and regards,
    Radhakrishna.

    ReplyDelete
    Replies
    1. No. you can get the money even if it is just 1 or 2 months.

      Delete
    2. Thank you for the reply.... but the organisation ppl r saying that it is compulsary to complete 6 months... whom should I approch?

      Delete
    3. Talk to the regional pf office where your account is maintained. They can confirm and advise correspondingly.

      Delete
    4. how much percentage pf someone will get who has worked for 3 months ?

      Delete
    5. 100%. Whatever you contributed you will get it back

      Delete
  68. Hi
    I worked in an organization but due to some personnel issue I happen to get absconded from the organization.
    will I be eligible to get my EPF amount?

    ReplyDelete
    Replies
    1. Yes, you can but for that your employer will have to endorse/sign the withdrawal application forms. So, if you want the money, you have to come to a compromise with them first.

      Delete
  69. Hi, During online pf transfer I have mentioned XYZ bank account number. Now in the current organisation my bank has been changed to ABC as a salary account. I want to know whether epf transfer process will be affected in any kind of way?
    Also in my current organisation for the UAN PF process my current employer will soon start asking for KYC forms. Now I have to submit it for which bank? XYZ as I have mentioned this bank during online transfer process or ABC as this is my current salary account in current organisation?

    ReplyDelete
    Replies
    1. Firstly - why are you providing bank account number for a pf transfer process? you will be asked for a target PF Acc number into which the old pf account money will get transferred. Did you submit a withdrawal request or transfer? If it was a withdrawal request - as long as the XYZ bank acc is open, you should be fine.

      Whatever is your bank acc that you will definitely keep open (and will not close) you can use that bank acc to link your PF UAN Account.

      Delete
  70. Dear Anand sir, My father worked in a private company for more than 12 years. He got retired on June 2013. He got his PF amount somewhere in Dec 2013. But, he is not receiving the pension. He visits his office to ask for the status, everyday they are telling they have some pending paper works. Its been almost an year but still there is no progress. Whenever he goes to his office to ask, they tell my father to come the next day or next week. Please advise how to deal this ?

    ReplyDelete
    Replies
    1. Consult the regional PF Office and ask them on what is the status of your fathers EPS account. Private companies do not offer pension services. they just enlist the employees in the government pension scheme (EPS) That is offered by the PF office. So, you can consult them and find out what is the problem/delay. Learn more about EPS here: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
  71. Hai Mr. Anand,
    As you know that the cieling for the epf has been increased to 15,000 from 6,000, I would like to know how the epf deduction will be as per the new system.
    For ex. if the salary is 7000 , then the deductions according to the old procedure are 780 from employee and 780(as per the cieling 6500). Will the deductions are on cieling 15000 or other method ? Please clarify this .
    Thank you.

    ReplyDelete
    Replies
    1. Anonymous - If the basic salary is less than 15000 rupees, then the upper limit will be the basic salary. the cieling is applicable if your basic salary is more than 15000 per month

      Delete
  72. Hi,

    I work with an organization 2.5 years back which has closed now, How would i withdraw money from EPFO directly without organization help as its has closed. Also i have checked my account status. It shown Inactive. Please help

    ReplyDelete
    Replies
    1. Visit your nearest pf office along with proof that you had a pf account and that the company is closed. They can help you with the next steps.

      Delete
  73. Hi
    I have worked with a company for 4 and 1/2 years, last month i gt some leaves because of my personel problems, i noticed to report it back on 8th of sept so i went and told them im moving out(cos of family problems) so i can serve priory of one month notice period or else one month salary will pay, but they insisted and told me that im terminated, i fought with them but they ignored, meanwhile they are telling you wont get PF also... please help me, is it possible to withdraw our PF when an employee terminated by the company.. ? please i need your guidence

    ReplyDelete
    Replies
    1. Dev - Irrespective of whether you resigned or you were terminated, your PF Corpus/money is your entitlement and you are supposed to get it. IF the company does not cooperate, talk to a lawyer, they can help you.

      Delete
  74. Hi,
    I have applied for pf withdrawal. It has been accepted and the process is going on. It has been already 2 months. Now i came to know that the account which i gave for pf credit has been freezed(locked) as i dint use it for more than 3 months. Even if they credit to that account it will be returned to pf office account. Can you please help me what is the procedure to claim the pf amount if it has credited to the locked account. Am currently staying in London. I cant go and meet them personally. I want the process to be done online or by post. I am unable to see the pf claim status. My pf number is KN/24470/023268 (BG\MRD). Can you please tell me whether amount has been credited or not so that i can do the process of unlocking my account as soon as possible.

    ReplyDelete
    Replies
    1. Hi - Firstly, only the pf acc holder can inquire about the status of their withdrawal. All you have to do is, contact the bank and get the account activated. you can call up your bank and request them to help . If your account gets activated before the money arrives, you should be good. Ask your parents/relatives to visit the bank personally and provide your account details and ask them to request for help on your behalf.

      The usual withdrawal process takes about 3 months to complete. So, you have another 2-3 weeks to get your account activated. If this is missed, you would have to activate your account the next time you come to India and then resubmit the withdrawal request.

      Delete
  75. Hello Sir, I had worked in a firm for 15 months and left. After leaving I did not fill my PF form or anything. Its been 8 years now. My query is that can i still get my PF if I go and enquire in the Company or does the PF get lapsed after so long. Kindly reply. Thanks

    ReplyDelete
    Replies
    1. No, it wouldnt have lapsed but the account wouldve become inactive/dormant. You can transfer the money from that account into your present/active pf account. Contact that old employer and work it out.

      Delete
  76. Hi Anand,

    First of all hats off to you for addressing patiently all the concerns posted here. Please help me out with my case.

    I worked for an IT company for 3 years and 4 months and below is the break down of my contribution.

    9months x Rs.1200 = 10800
    12months x Rs.1883 = 22596
    12months x Rs. 2200 = 26400
    4months x Rs. 2763 = 11052

    Total = 70848

    My Company's contribution is also same so my total PF corpus should be Rs. 1,41,696. Right??

    Recently I've applied for withdrawal a month back. The money that I got as on account today is Rs. 19,370 !!!??

    I am surprised why it is so low.

    Does the transfer happen in installments?

    How much minimum will I get when I with draw form Rs. 1,41,696 corpus?

    Please clarify. Thanks in advance

    Thanks,
    Vamsi

    ReplyDelete
    Replies
    1. Vamsi - firstly, not all of the employer contribution goes into your EPF Acc. it gets split and goes to different places. See this article for detals:http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Secondly the money does not come as installments. I think this money is either your gratuity or EPS payment.

      When you withdraw - the full amount will come. Contact your old employer to find out how much was actually present in your pf account. you will get that money.

      Delete
    2. Thanks for the reply, Anand.

      As I said when I applied for withdrawal of PF, I got this amount of 19370 ~ 541*37 months. I think according to the link you provided it should be my EPS.

      I inquired with my employer and he feels there could be another installment. He said he will get back with what could be my actual corpus.

      As mentioned above my own contribution, that I figured out through my payslips is 70K. So, at least I should be getting this amount right?

      Are you sure there won't be another installment that EPF money will come in?

      If so, please let me know what do you mean by 'When you withdraw'

      Thanks much,

      Vamsi

      Delete
    3. Vamsi - By installment I meant that the pf money will come in one shot and not parts.So, as I guessed this money you got is your EPS. Wait for a few weeks and you will get your EPF also.

      I am just saying that, when the withdrawal happens the full money will come. So, in your case since you already submitted the request yous hould get 70k (your contrib) plus your employer contrib plus interest.

      Note: As you have withdrawn before completing 5 years, this money you get is fully taxable.

      Delete
  77. Dear Sir,

    I left my job with an organisation in 2011. I joined another place where in they opened a new account for me. I did not transfer the pf amount here and then I switched job again. I got the refund of pf for the new job. Now i work in a third place since 5 months here also a new account has been opened. i may not work here for long and may not work at all. What should i do with my oldest pf account.it is 15 yrs service there. i am confused. Please help. thanks

    ReplyDelete
    Replies
    1. As long as you are actively employed, you cannot withdraw that old pf account. You can however transfer the pf account into the current active pf account.

      Delete
  78. hello Mr. Anand,

    I want to transfer my pf account to new employer. Can i trasfer my pf account without help of past employer's seal and signature.

    Problem is that i have gone in competitors company and past employer will not sign and seal in my transfer form. What should do sir pleas help me out

    Can i transfer by signing of present employer?

    Regards,
    Denish Chavda

    ReplyDelete
    Replies
    1. Denish - As long as your old employer is actively operating, you cannot transfer without their signature. Your new employer cannot sign the pf forms of an account you had with your old employer. Why would your old company not sign? Did you not serve your notice period?

      A company cannot deny the pf money of its employee. IT is the employees right. Consult a good lawyer if the company wont cooperate.

      Note: If you were legally bound as per you employment agreement to serve a certain notice period or to not join a certain company for a certain duration and you broke that agreement, going to the lawyer can result in you facing problems as well.

      Delete
  79. Hi,

    I have resigned from a MNC in 2012. Now i want to withdraw the amount. When i tried to check the balance in epfo site it is showing 'Invalid Input / Member name mismatch'. I entered the same details as in pf slip provided by the organization. Is my account de-activated? will i get my money back?

    ReplyDelete
    Replies
    1. Yes, inactive accounts may not be present in the epf website. Contact your employer and initiate the formalities to either transfer (if you are employed right now) or withdrawal (if you are unemployed now)

      Delete
  80. Hi,
    I am married and dont want to mentioned husband name in PPF form. Please suggest me can i do that or not?

    Thanks in advance,
    Tripti

    ReplyDelete
    Replies
    1. Wrongly quoting information can hurt you in the long run. It is always a good idea to declare things truthfully.

      Note: If you still wan to not-declare/mention your husband you can do it but in future if some complications arise, it will be difficult for you to fix the problem

      Delete
  81. Hi Anand ji,
    I was working for a company for 01-10-2011 to 31-12-2013.after leaving the company i was unemployed for 6 months. During this period i claimed for settlement and got the ammount.
    Now i got a job and my employer asking for previous company's epf statements.
    Can i get those ??

    Please help me through.

    Thank you in advance.

    ReplyDelete
    Replies
    1. Yes you can. If you have your PF acc number you can get it from the regional pf office. If not, you can contact your old employer and request them to help get this for you.

      Delete
  82. hello anand sir,

    I left my job in the year of 2012 but till i have not withdraw PF amount for some medical reason.so now possible after after 2 year.

    ReplyDelete
  83. Sir, can everyone can see the details of my pf acc. Does the department share our pf details with with company?

    ReplyDelete
    Replies
    1. Everyone No. To you and your employer - Yes.
      Yes - your employer will be able to view your pf details

      Delete
  84. Hello Anand, My Father was working for a company A from 2002 to 2008, Then he moved on to company B from 2008 to 2009 and to company C 2009 to 2010, Present he not employed. Since he worked in three different states, he has got three different PF. Who do we have to approach to with draw the money from his PF account? Please advise.

    ReplyDelete
    Replies
    1. Hi - Ask your dad to contact the 3 different employers and initiate the withdrawal requests. As he is currently unemployed, he is eligible to withdraw.

      Delete
  85. considering MNC banks in India such as RBS run a private provident fund, can they apply penal interest on withdrawal of PF in case of change of job to another organisation. I have case wherein 9% ROI has been announced for PF for 2013-14 however an employee left in December 2013 the ROI for the period 2013-14 on the corpus has been provided only 7.5% a clear difference of 1.5%. Is this legal ?

    ReplyDelete
    Replies
    1. Anonymous - As far as I know, there is no penal interest concept even for private epf trusts. The rate of interest difference could've been due to the compounding factor applied. Anyways, better you consult a good labor lawyer for this

      Delete
  86. Hello Mr. Anand., I have a few questions regarding the PF. Hope you can answer it.

    Current Status:
    I have worked in an organisation from Dec 2007 to Jan 2010. Later I didn't join in any organisation till Dec 2010, resulting in a gap of 10 months. Later I joined in other organisation in Dec 2010 and working till date for which PF is being deducted from my salary. So I have two PF accounts from my two Employers. Until now this is good.

    Queries:
    1) I tried to transfer my old PF amount to my existing PF account. But it was rejected by the PF office mentioning as my previous employer has rejected my PF transfer. But I came to know that in order to transfer my PF amount, there is nothing to do with my previous employer once I obtain form 5 , form 10 and form 3A. Even I booked a grievance in EPF website, they asked me to submit a fresh form 13 with my current employer again. But none of them has advised the exact problem with my PF transfer submission.

    2) I came to know that the PF account shall be valid for three months without any PF amount depositing in it. Since I was with no job for 10 months, can u please advice whether my Old PF account is still valid or not. I mean whether I have to transfer it to new account or I have to withdraw it. It is no point to transfer if the continuity breaks because as per the rules I can obtain pension fund once I complete my 10 years of continuous service.

    Thanks in advance.

    ReplyDelete
    Replies
    1. Anonymous - Answers from my side

      1. If the reason was that your previous employer has rejected the pf transfer, no matter how many times you try, the result will be the same. Consult your old employer and find out why your request was rejected.

      2. Yes, your pf acc will now be inactive but as holder of the account, you can access the account (either for withdrawal or transfer) anytime you want. If you transfer this pf to your new job, the experience in both the jobs will get added up for the total EPS experience.

      Delete

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