Dear Friend,

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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...

193 comments:

  1. 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
    2. Can i withdrw my contribution from epf ?

      Delete
    3. Yes you can. Read this: https://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. Hello Anand,I submitted my PF claim back in June & have the confirmation from my previous company that it was dispatched to the epfo for processing in June.However it has been more than 3 months /90 days for my submission still have not heard anything about my money. When I check the epfo link online it says NO RECORD FOUND> , Last update I got from company is that it is under process.
    Last time I got my PF money on time exactly like in 90 days after submitted my claim from the same company like 2 yrs back. This time it is taking long time than the regular 90 days. Please help as to what I have to do apart from waiting.

    ReplyDelete
    Replies
    1. Did you get any notification that your pf withdrawal request was processed?

      Read these two articles - they can help you.

      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
  10. Hi Anand Sir,

    First of all I would like to thank you for the excellent help you are providing to people like me.
    Please help me sir.
    Sir today i ask for my PF balance amount on EPFO website. They send me a SMS. M sharing SMS details with you here below:

    EE is Rs 11675
    ER is Rs 3265
    Total becomes Rs 11940
    As on 20-09-2014

    I joind my company on 15-09-2010 and left the job on 15-12-2013. Means i worked continuously for around 38 months. My company HR department is saying that i will receive my PF probably by this month end.

    So my question is how much total amount i will receive in my bank account?
    Will i get Rs 11940 or i will get more amount than this? Because as per my knowledge EE is equal to ER. So i should get more than Rs 11940.

    Please at least give me an approx idea of total amount i will receive in my bank account.

    I have searched Google a lot but didn't get any satisfactory answer.

    I will be really thankfull to you.

    My what's App no is: 9855303568
    It would be great if you will text me on my what's App account or if possible please just give me a miss call on my cell I will call you back myself.

    Please send me a reply mail on my I'd:
    ajaykharar@gmail.com

    Thanks and Regards:
    Ajay Goel

    ReplyDelete
    Replies
    1. Ajay - Read these 2 articles:

      http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html
      http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Anand

      Delete
  11. Dear Sir,

    I have worked 20 months for a company and my EPF deducted as

    490 for 10 months, 490 x 10 = 4900
    780 for 10 months, 780 x 10 = 7800

    Total my contribution is 12700 and same amount should be employer contribution so total amount should be 2500 + Interest.

    But i got only 20500, is it the right amount..? or should i talk to my employer.



    ReplyDelete
    Replies
    1. Hi - Did you read this article? http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Your employer contribution does not fully go into EPF. It gets split. and only a part of it goes into your PF. Read it, i dont think the amount you got is wrong.

      Delete
  12. Hello Anand,
    Mine is old story which is not able to get the solution for past 10 years. My PF account is KN/BN/19353/762 when I was shifted my job from Bangalore to Chennai by 2006, I had been asked to submit the PF transferring form in my new company (New PF account no: TN/49115/628 till now). After six to eight months i have checked with the present company for transferring the amount, but it has not been done. So i decided to cancel the PF account and filled the cancellation form in bangalore during 2006 december. After a month (2007 Jan) I got letter from Employers provident fund organization Bangalore, saying that my account has already been transfer to TN/49115/628. Actually it was not transferred till now and I was walking Chennai to Bangalore almost 5 to 6 times and got fed up. Finally I have taken all the relevant documents to Bangalore as one of my friend gave suggestion to get Right Act Information about the fund transfer and bank cheque number details. I got the result of saying that your account has been transferred so on so date and due to very old account they could not the trace the cheque details. Now what else I have to do to get my PF amount or due to very old account it might be lapsed? Please give me your valuable suggestion.

    ReplyDelete
    Replies
    1. File a Grievance: http://anandvijayakumar.blogspot.sg/2013/04/can-i-get-my-epf-related-grievances.html

      Best wishes.

      Delete
  13. Dear sir , what about an employee who was completed 9 years and 5 month of continuous job..and he / she left the job , he/ she become eligible for pension scheme ?....if he / she want to withdraw pf amount what will be the condition ..? he / she will get all pf amount

    ReplyDelete
    Replies
    1. See answer to your Question here: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
  14. Hello Sir,
    My first que. is that after eligible for pension after retirement. how much amount i can get as pension? as it on monthly basis or yearly? What process i have to do for the same? Is there requirement of last employer for this process?
    And second que. is that if i left last job but not completed 10 years job and if i want to get eligible for pension, can i direct deposit pf amount till completion of 10 years? Without under any employer hence no continue job?

    ReplyDelete
    Replies
    1. Read this to know more about the EPS Scheme: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Answers:
      1. It will be monthly. When you retire after serving at least 10 years, the Pension starts after the forms are submitted
      2. No, you cannot do contribution from yourself. You can transfer the EPF Account that did not complete 10 years to your new job and combined finish 10 years to be eligible for EPS

      Delete
  15. Sir My claim application rejected and reason for that slightly change in PAN card Name and pf account Name how can I will be resolved?

    ReplyDelete
    Replies
    1. You need to first submit an application to amend your name in the EPF Acc to match your PAN card and then resubmit the claim

      Delete
  16. Hi, thanks for the wonderful job that you are doing. I hope you can help me.

    I have worked with an small organization for 9 months. It deducted pf amount from my salary, but never provided any pf account no or pf statement. They have not mentioned pf no on salary slips as well. I asked them hundred times about my pf account no, but every time they made excuses.

    Now I have left the organization and they have still not provided me pf account no. I seriously doubt that they have never created any pf account and deposited any money in it. Now what can I do to recover my pf amount. I have properly resigned and served notice so nothing is unethical from my side. Please help me.

    ReplyDelete
    Replies
    1. You can try to ask them one final time and if they still refuse to share the info, you can actually contact a good lawyer who specializes in labour matters to recover the amount that was deducted as PF.

      If the company deducted PF, they are legally bound to have deposited that money with the EPF organization. If they did not, they can be penalized.

      Delete
  17. Hi - I am purchasing a flat from a reputed builder in Bangalore. I have taken a loan from a nationalized bank. I would like to utilize my EPF funds towards the loan taken from the bank and for future payments to the builder. Can you please advise me on how to go about this? Thanks.

    ReplyDelete
    Replies
    1. You can withdraw from EPF for purchase of house or repayment of loan. see here: http://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  18. Hello Anandji,

    I just want to know that I was worked in delhi and PF account opened at there. Now I am working in ahmedabad and wanted to transfer my PF account Can I transfer account from one state to another?
    If yes than whats the process?

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

      Delete
  19. i worked in branch office at bhopal in a private ltd company for 24 years and their head office is at indore. In branch office almost 20 person were working but company decided to close down business in branch and they have closed all business activities in bhopal and from employees asked for resignations. Maximum employees tendered the same. I have also been asked to resign but I have not resigned from the services and I requested the management for my 2 months due salary,leave encashment and compensation but they refused to give the same. After 8 months i"ve filed the case for gratuity before ALC, and submitted my PF claim forwarded by ALC to the department before 3 months. At present PF authority are refusing my case verbally and suggested me to give the resignation and for compromise with the employer then they will decide for partial payment of PF. My question is how PF authority can enforce me to compromise And As per new law of PF authority, saying that your all benefits you can get after attaining the age of 58 years. Though I need money because i am unemployed since last 8 months and there's no source of income. PF authority till to date have not returned my claim form also. Please advice.

    ReplyDelete
    Replies
    1. Please consult a good labour lawyer who can help you with the amount the old company owes you, including the PF dues.

      Delete
  20. I was working with a limited company since 2005. Till 2012 I was in India and in early 2013 I moved to US on an onsite assignment with the same company and now recently I have left the company and joined a US based company. Can I withdraw my PF? and if not will i get the interest on the amount available in the PF account?

    ReplyDelete
    Replies
    1. Yes, you can withdraw and No you will not get interest on the amount in the EPF Account. Once the monthly contributions stop, the account is tagged as Dormant and stops earning interest

      Delete
    2. This comment has been removed by the author.

      Delete
    3. I believe The new EPF Regulations come into effect on April 1st of this year. So, after that you will only get the employee contribution.

      Read this: http://anandvijayakumar.blogspot.sg/2016/03/recent-changes-to-epf-regulations-in.html

      Delete
  21. Hello Anand,
    I have one query, and hope you can clear my doubt. I have completed 5.3 yrs in my current organization and during two months notice period I tried two time to take advance loan against PF for Housing loan repayment without any success. They are rejecting my application with giving minor excuses. now since I am very close to join the new company, I can't give more try in existing company.

    since it is mandatory to have 5 yrs continuous services in order to apply advance loan for repayment, is it possible for me to try the same in new company (without waiting for another 5 yrs)if I am transferring the PF account to new company? would my tenure accumulate from previous employer ?

    Thank you in Advance.

    Deepak


    ReplyDelete
    Replies
    1. Yes, if the transfer is successful & completed, you dont need to wait another 5 years. The experience gets carried forward to your new job.

      Not: You would have to wait until the transfer is complete before you can make the advance request

      Delete
    2. Thank you - Anandji.

      one more query, how much tenure is required in order to apply for PF advance loan for Repayment of Housing loan (which has been taken care from third party, like LIC...etc) ?

      I was aware of 5 yrs and applied after 5.3 Yrs of service, however EPF has rejected my application due to lack of minimum of 10 yrs service requirement ?

      Delete
    3. Read this article: http://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  22. Dear Anand am working in two companies one is 1.Health care and second company is 2.YUM rastaurents India.
    Can i get two Companies PF...

    ReplyDelete
    Replies
    1. This is a tricky question. You can only have one EPF Account at any time. But, I dont think EPFO would mind if two companies are crediting money every month in the same EPF Account (though I couldnt find any documentary proof for this)

      Anyways, if the two companies know about your other job, it may not be a problem. Some companies dont allow their staff to work with other cos and may cause problems in the job.

      Delete
  23. hi sir,
    my name is sachin kumar. my old company update wrong account number in kyc information. when i asked they said it happen sometime in bulk uploading then he suggest me to upload a cancel cheque of bank account in kyc information so i do same as. now when i say to account department to approve it they guys says that it will be not approved from our side. epfo approved it and it take 15-16 days . so sir they guys says true? if they nor say true what i do for it?

    ReplyDelete
    Replies
    1. Updates to personnel records usually takes a few weeks so I think it should be ok. You can wait for 3-4 weeks and then recheck if the info is updated

      Delete
  24. Dear Sir,
    I Have Been Working With An Organisation For Last 11 Years. Out Of 11 Years I Have Been Based On A Foreign Location (Singapore) For The Last 5 Years- The Country I Am Currently Based In Doesnt Have Social Security Agreement With India.

    As Per My Contract For Foreign Deputation My EPF Is To Continue In India. My Monthly Basic Salary Is USD 5000/ Month.

    My Question Is - What Should Be My Employers And My Contribution To EPF India ?
    What Basic Salary Should Be Used For Calculation To Determine Contribution.I Have No Salary Component Paid In India - And I Do Not Pay Any Income Tax In India.

    My Contract Has The Following Wording Regarding Pension- \" Company Will Maintain Your Indian Pension Contribution

    ReplyDelete
    Replies
    1. As per your Job offer letter in India, whatever is the basic salary in Rupees, that will be used for the calculation. Not the foreign salary

      Delete
    2. sir, i dont draw any salary in india so what should be the basis ? In essence i resigned from my India company and joined Singapore entity - the reason the clause was incorporated because i was not eligible for CPF in singapore.

      Delete
    3. If you are no longer an employee of the India entity, you wont get any EPF.

      Delete
  25. Dear Anand

    Me and my colleage are working in a private limited company. Both of us have opted out of EPF and our salary at entry level is 16500 and 15800.

    The problem is that my colleage who joined last month, comes from a village and is semi skilled. The HR manager says that since we are not a member of EPF then we shall receive payment by cheque only. I do have a bank account but my colleage does not even have a Identity Card and hence cannot open a bank account. The company is not ready to pay him by cash, but vide cheque only.

    Hence I just wanted to confirm whether is it true/manadatory that one not being a member of EPF and salary above 15000 is not entitled to receive his payment in cash and has to receive it by cheque only. If yes, then what can be done for my poor colleage as he is unable to open an account.

    Thanks

    ReplyDelete
    Replies
    1. Hi,
      Companies these days DO NOT offer cash for people especially those where amount is higher than 15k. So, ask your friend to apply for an ID Card and a Bank Acc and then get the payment.

      Even if the cheque isnt an Account Payee cheque that can be cashed @ the branch, your friend will still need an ID to prove his identity before the bank will issue cash.

      Delete
  26. Hi Anand,

    Usually, what happens to the previous Provident Fund Account when the amount is transferred to the current account?

    I had raised a transfer claim request to transfer the amount from my Previous PF account to my current PF account. But even after getting the amount transferred to the new PF account, I can see an interest amount credited to the previous PF account?

    Should be raising a fresh request to get this interest also transferred?

    Thanks,
    Prajitha


    ReplyDelete
    Replies
    1. Usually the old account is closed. I believe this could have been due to a clerical error or mistake. Contact EPF office to find out why interest is being credited even after the account corpus has been transferred out into another PF Acc

      Delete
  27. hi. i had a question which i wanted you to answer. i have resigned from my company recently after 4yr 8 months of service as i am going for higher studies. i do no wish to withdraw my pf balance since i would incur tax on the same. i have asked my employer to keep my account dormant for the period of my study and as and when i find a new job i will shift my existing pf account. i also have my UAN. is it a good idea? can it be done? my HR says it cannot be. need your opinion.

    ReplyDelete
    Replies
    1. Hi Aneesh - since you wont be joining a new job according to the EPF laws you can withdraw the money. This is probably why your HR is saying it cannot be done.

      If you insist on keeping your account dormant, I think it is doable however the account WILL NOT draw interest during the period you are abroad. Once you come back, get a new job and transfer the old PF Acc and merge it with the new account, then only interest will be earned. At that point you will need the help from your current HR who may or may not be willing to take up the paperwork so many years down the lane.

      so, I would recommend you withdraw the money even if it means you pay taxes because firstly it will be easier to get your HR to cooperate now than 3 or 4 years from now. Secondly if the EPF corpus stays in the account and does not earn any interest, you will probably end up losing almost as much money as you probably will pay in taxes this year.

      Delete
  28. Hello Anand sir, i just know that i have allready one running pf account with my job. but i need more one job. if in case i did both company's job at the same time with one pan card pf account. so its legal or not. i mean on the one pan card we can open two pf account or not?

    ReplyDelete
    Replies
    1. Hi - Legally I dont see any problem in having 2 PF Accounts with one PAN Cards as long as both are proper Jobs However, either company may have a problem with you working for another company and if the job offer you signed in job 1 says you cannot take up any part time or full time jobs with someone else while on the payroll of job 1 then you cannot do that. In this case, it would be considered illegal.

      Delete
  29. can i have your email id i have a big query about pf calculation .please can you send me a test mail.i will reply back or can me give me your mail id

    ReplyDelete
    Replies
    1. Akshay, you can leave your comment here so others could benefit from your query too. Hope you have already read this article if not - pls do

      http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      Delete
  30. Hello Anand,

    I have been working for 26 months with my current employer. However now I am quitting to pursue higher education. I don't intend to withdraw my PF amount. Can I keep it intact in my PF account or is it mandatory to withdraw it?

    ReplyDelete
    Replies
    1. It is not mandatory to withdraw. You can keep the account open and then transfer the EPF to your new job after you finish education

      Delete
  31. Hi Anand Sir,

    I have worked in TCS for 3 years and my Name was there Neha Tomar(Although in PAN card, passport and in all other documents it is only Neha. TCS open my EPF account with 'Neha Tomar' name. Now I changed my organization and in new organization my name is only 'Neha'(Because in document it is only Neha) and they have opened my pf account with name 'Neha' only.
    My query is "if I will face any problem while transfer the pf from tcs to new organization" and if yes what can be the probable solution?

    ReplyDelete
    Replies
    1. yes, it could be a potential problem because the name doesnt match your documentary proof. Better contact TCS to get the name in your EPF acc corrected before you initiate the transfer.

      Delete
  32. Hi Anand,
    Is EPF and ESI mandatory for vehicle contractor (hiring vehicle contractor)

    ReplyDelete
    Replies
    1. Please consult the regional PF office. I am not the best person to comment on organizational PF matters

      Delete
  33. Hello, thank you for your inputs in a simple way. I have a situation can you please let me know who to check it ?
    I worked in a company for 21 months, and left the company and withdraw my entire amount. I didn't work for a span of 1 year. Now i have rejoined in the same company. I wanted to know whether my UAN Account No is still active or its lapsed now ( since not active since one year). I have checked online but it is showing as active. How to authenticate it ?

    ReplyDelete
    Replies
    1. As far as I know, the UAN is permanent. You can provide the same to your new job and I think they can continue to use that acc for you

      Delete
  34. Hi Anand,

    I was working in company 'A' and now working in 'B'. My UAN number is activated already. I have 2 PF accounts, one from company 'A' and another from company 'B'. I can see both my pf account numbers in UAN member website.

    My question is, since I have not claimed for transfer of amount from company 'A' PF account to company'B' PF account, do I get PF interest paid only for company 'B' PF account now? or irrespective of number of PF accounts for a UAN number, do I get PF interest paid for total sum of PF accounts ? so, do I need to claim for transfer of amount from company 'A' PF account to company'B' PF account?

    Please help me.

    Thanks,
    Soma

    ReplyDelete
    Replies
    1. Yes, you need to transfer the PF from company A to company B to enjoy interest on the entire corpus

      Delete
  35. Anand, I did served 18 years in one Organization and planning to resign now to establish my own business. My Org has their OWN PF Trust and my question is I can claim my full PF amount or only I can with draw Employee contribution alone based on recent GO from Government in Feb 2016 on PF Withdrawals. Recent Government GO talks only we can with draw employee contribution and employer contribution can with draw only after 57 years of retirement age. Since our Org has own PF Trust, still this government order applicable to us? Please clarify I can with full PF amount or only my contribution alone?

    ReplyDelete
    Replies
    1. Even though your PF Acc is maintained by the company trust, still the rules set forth by Government are applicable

      Delete
  36. Hi,

    I had worked for about 4 years and have about 3.3 lakhs in my EPF account (employee and employer contribution included).

    I had two queries,

    1) Govt has recently proposed to divert money lying in unclaimed EPF accounts towards senior citizen's welfare fund. I have not made any contributions in last 4 years as I'm presently unemployed. So will my EPF account be treated as unclaimed?

    2) Can I withdraw it fully and will it be taxed? If yes, approx how much would I need to pay as tax?

    ReplyDelete
    Replies
    1. 1. Yes, correct.

      2. You can withdraw the Employee contribution because the new rule came into effect April 1st. And yes, it will be taxed

      Reg. Tax - The amount you get will be added to your annual income and taxed accordingly

      Delete
  37. Hi Anand,

    Thanks much for the consolidated information.

    I have a question.

    If a employee left an organization A on 29 Jan 2016 and Joined an organization B on 10 Feb 2016. Here there is a gap of 12 days.

    Is he eligible for the pension ?

    Generally how many days gap will be grace period for a employee when he switched job ? (for the eligibility of pension)

    ReplyDelete
    Replies
    1. I believe you are talking about EPS (Employee Pension Scheme)

      If that is the case, the eligibility for pension is determined by 10 years of combined EPF contribution + services. There can be breaks in between jobs and it doesnt matter. You could even take a few weeks/months break, keep the old EPF Acc active and then start a new job and transfer the old EPF and continue the EPF contribution.

      Delete
  38. Hi Anand,
    I worked for an organization for almost 2 years and they deducted PF every month but still did'nt give me my PF number. When asked about PF number there is no response from them. I also quitted that job 3 months back.. Onething I need to know.. How much time it will take to generate PF number? Is my previous employer cheating on the employees by only deducting the money and not giving the PF number? Please guide me.

    Thanks.

    ReplyDelete
    Replies
    1. Nobody can accurately say exactly how much time it takes to open a PF Acc but i am 100% confident it is not 2 years. Usually people get their PF Acc info within the first 2-3 months of them joining the company.

      So, there is a good chance that they are doing something incorrect. contact a good labor lawyer

      Delete
  39. Hello ,
    I have a query .
    I have put 4 years of service in a company and now have left the country .i resigned as I was settling abroad .
    I have claimed the PF amount from my previous organization .
    The amount was paid thru cheque and the same was deposited late by the company and was credited in my account on 10th April but the cheque date was 31 st March and tax of 80,000 was been deducted .
    Now since I am not working so whether this amount will be recognized for the current year or previous year .
    If its current year so I claim refund of this tax as I have no income and if its previous year then can in anyway I claim this amount as the same was credited to my account in the current FY

    ReplyDelete
    Replies
    1. Since the TDS was deducted by EPF office in the previous financial year, this PF money will get added to that years total income and will be taxed accordingly.

      If you need help minimizing your tax liability, check out my book on tax savings here: http://anandvijayakumar.blogspot.sg/p/books-by-this-blog-author.html

      Delete
  40. its look that some employer not contribute his share but deducted his share amount from employees salary . it that any rules to contribute only employees share .

    ReplyDelete
    Replies
    1. No. As far as I know, EPF needs both employee and employer to contribute

      Delete
  41. Hi Anand ,

    I left my previous company on 09-Apr-2014 .I applied for PF transfer during aug-2014 .
    Still those people havent transferring my money to new account. If I send them mail they are asking to wait for one more month..
    so far they pushed this process for close to 2 years . Can I file a case on them, I have all mail proofs .? rite from 2014
    Can you pls guide me in .
    My Mail id : kishorenkvv@gmail.com

    ReplyDelete
    Replies
    1. Yes, you can. IT shouldnt take 2 years. Contact a good lawyer who specializes in labour laws

      Delete
    2. Anand,

      Please try raise RTI through online rtionline.gov.in by paying 10/-, your amount will be transfers with in 10 days.......i did the same for my pf withdrawal...

      Delete
  42. hi

    Pan number is essential for less than 5 years of service... my doubt... Is pan number needed for withdrawal amount less than 50000??

    ReplyDelete
    Replies
    1. PAN is Mandatory for all PF withdrawals, irrespective of the no. of years of service or amount.

      Delete
  43. Hi Anand,

    I have a question pertaining to Online PF transfer.
    I have initiated for an online transfer of PF. I chose attestation by my previous employer. My previous employer has approved this request. Just wanted to know, what are the next steps here? Does my current employer also need to approve this request?

    Status as follows:

    11 Mar 2016 Claim Form Submitted.
    14 Apr 2016 Claim Form Approved by Previous Employer.

    Do I need to chase my current employer also for approvals?

    I would really appreciate some guidance here.

    Thanks.

    ReplyDelete
    Replies
    1. Yes. If the old employer has approved the request, it comes to the current employer.

      Delete
    2. Thanks a lot for your prompt response. I'll follow up with my current employer now.

      Delete
  44. Sir My joining date 1-Dec-2012 Basic salary 4,500 (EPF Deduction 12% RS 540) date of resign 30-7-2015
    my totally withdraw money is 22000+8500=32500 lump sum
    but my PF details in online company not deposit their employer part from 10 month

    My question is that this withdraw money is correct or wrong about your calculation

    ReplyDelete
    Replies
    1. Hi,
      Even though employer contrib is also 12% (540) it gets split into multiple components and gets deposited in different places. Read this: http://anandvijayakumar.blogspot.sg/2013/03/employee-provident-fund-demystified.html

      I cannot comment on whether the amount is correct without knowing the breakdown of the employer contribution.

      Anyways, the online statements are usually backdated by at least 3-6 months and not up to date. If you suspect, you can ask for a detailed up to date statement and if your employer hasnt made proper payments, you can take it up with a lawyer and fight for your money

      Delete
  45. Hi Anand,
    I worked for a company A in Bangalore for 4.5 years post which i went for higher studies. I had not withdrawn my PF during this time. Post my studies I joined a new organization B and gave my old PF details. I had a new PF account in the new company in Mumbai. I have now shifted to a new company C . I wanted to know that do I have to raise a request for PF transfer for both my company A and B to new PF account separately ? Also whether the interest earning of my PF amount in account A would have stopped 3 months post my resignation ?

    ReplyDelete
    Replies
    1. Yes, interest stops when an account becomes inactive after 3 months however now the government recently announced that even inactive accounts will earn interest. Am not sure if they will go back and retro-pay interest for such accounts.

      anyways, yes you have to initiate two transfer requests to get pf from A and B to C

      Delete
  46. First of all Hats off to you Anand and thanks for helping out everyone.
    I need one suggestion. I have worked for a company from May 17 2010 to Sep 2 2015 and another company from Sep 21 to Jan 1 2016.
    Now I am in overseas and do not intend to work in India. Should I take back My PF amount?? I got an information that if I do not withdraw then all amount will be taken back (may be I am misguided).

    ReplyDelete
    Replies
    1. Taken Back? Yes, you are misguided. The EPF or the Government does not take back the money. However, some malicious elements may try to bribe government officials to access unused accounts and withdraw funds.

      So, its safer if you withdraw the money from your EPF Accounts as early as possible.

      Delete
  47. My name in EPF passbook is incorrect. I have applied for the correction 2 months back but till date no correction has been done. How much time is taken by the EPF office for rectification?

    ReplyDelete
    Replies
    1. It usually takes 4-6 weeks but there is no guarantee. Wait for another 3-4 weeks else contact your employer and check for the status of the request

      Delete
  48. Hi Anand,

    Thanks a lot for what you are doing.

    In my case, I changed my job and hence decided to transfer the PF accounts. I tried to this from both last and current employer sides but even after their approval the transfer claim was rejected. They said they will send a rejection letter with details but we all know they don't do that often. So, I decided to withdraw the money from the old account. Well, even this time I got a text saying that the claim has been rejected and a letter will be sent. I got no letter. I emailed EPF support, filled the grievances, got no reply. What should I do now to make this clear?

    Thanks in advance.
    Anubhav

    ReplyDelete
    Replies
    1. Pls read these 2 articles:

      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
  49. Dear Frnd,

    I m Gobinda from delhi.

    My query is ......

    I m a private employee. in case i have left my job. already deposited 50000 in pf account. now i have not withdraw. after 1 year company is closed. so after 5 years i will withdraw my pf amount or not ( because withdraw is possible after company sign )

    ReplyDelete
    Replies
    1. Pls contact the regional PF Office near you. For cases where the company is closed, they will still allow withdrawal but after a few processes

      Delete
  50. I have a question that in some organisation the employer divide the salary as basic 3500 +HRA 900 + others 7600 to save the EPF Contribution. Is it right way ??? Please answer.

    ReplyDelete
    Replies
    1. Unfortunately, there is nothing wrong (law wise) in a company structuring the salary of its employees that is most beneficial for them.

      Delete
  51. Is there have any process to withdrawn my earlier company PF Balance without help of employer? If have any process kindly share the same because employer is not entertaining my request.

    ReplyDelete
    Replies
    1. Yes, I heard that the EPF office is planning to introduce a new form for withdrawal of EPF that doesnt require Employer signature. But, the details of the same are not fully clear. Pls check with EPF office near you

      Delete
  52. Hi Anand,

    I received a message today that my pf claim has been approved and the payment is in process. How long would you say it will take for the payment to be sent to my bank.

    Thanks in advance.

    ReplyDelete
  53. Hi Anand Sir,
    I was working in a company for 7 months and quit that job on April, 2015. I applied for PF process on the same day of relieving. But, I haven’t got my PF claim. On enquiry, my previous HR told me, for the duration of minimum amount of service, the only possible way is to transfer and not to make claim on PF. But, I enquired personally in PF office. The officials said me that minimum 4 months of service is enough to get the claim. Upon that Enquiry, they resubmitted my form on April, 12, 2016. But, the problem is still the money not got activated into my account. Still how many days does it take?
    Meanwhile, I have been working for another office for the past 8 months. But, I have joined in my present company only after 4 months of my former. I want to make claim on that money not want to transfer. Can I make? Thanks in advance.
    I want to thank your blog. Before I made my query, I was going through some of the queries of others. Detailed and satisfied answer.

    ReplyDelete
    Replies
    1. If you take a break of 4 months you are eligible to withdraw the PF from an old account plus, even if its only 3-4 months also you can get your money. The usual processing time is 8-12 weeks.

      Delete
  54. Hi Anand ,
    I had a query regarding pf withdrawal and I was hoping you could address it...
    I am working since 6 years. And now I will be quitting due to wedding and in future will not be working. I have about 4 lakhs in my epf account (2 lakhs my contribution and 2 lakhs employers contribution). I will be applying after 60 days of unemployment i. e. in mid August. Will I get my full pf amount for my wedding?
    Asking this query as I had read it in some news that from Aug 1 there are going to be some restrictions on pf withdrawal...

    ReplyDelete
    Replies
    1. Will you get the full amount - YES
      Will you get before the wedding? It depends on when the request is submitted. Usual processing time is about 6-8 weeks once the application is submitted

      Delete
  55. Thanks a lot sir

    ReplyDelete
  56. Hello Anand, I would like to know some detail , as i left from one organization (Worked 9.6 Years) and joined another and now 6 month completed in new oranization and make request for pf transfer . I want to know after PF transfer can i withdraw my full balance as 10 years already completed and now i want to purchase one house . what is the procedure.

    ReplyDelete
    Replies
    1. If your transfer request was successfully completed then Yes you can definitely withdraw for the house. You can contact the finance department of your office for the requisite forms and then submit along with the supporting documents to prove you are buying a house.

      Delete
    2. Thanks Anand for your information

      Delete
  57. Hi, I am working from three and half year, and I want to withdraw my pf amount for my marriage purpose, my job is continue with same company. Can I withdraw amount? Please guide me. Reply please

    ReplyDelete
    Replies
    1. No, you cannot. Read this article: https://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  58. Hi

    if a person leaves his job and went for an employment overseas after completing 4.2 years of service with the company and allowed his EPF to continue for 8 months to complete 5 years and closes epf account, the withdrawal of that amount will be taxable? If yes then how to calculate the tax liability. Please reply....

    SSA

    ReplyDelete
    Replies
    1. for EPF years calculation, active employment in India is counted. So, you have to come back to india, join another job and contribute 8 months EPF to hit the 5 year mark & avoid tax liability

      Right now, whatever balance remains in your EPF, if you withdraw will be fully taxable. Lets say your annual income this year is 5 lakhs and you get 2 lakhs EPF withdrawal, your total taxable salary for this year will be 7 lakhs

      Delete
  59. hi anand,
    I am working in a private institute as a lecturer. currently many of us dont have PF account. Now our college is ready to open our PF account. But they put one condition that we will stop our increment for this year only. I am on scale now with basic of 15600 with 10% DA and 10% HRA and 6000-AGP. (I hope that i will get minimum 3% increment on basic and DA will be atleast around 40-60%).
    First, As a long term please suggset me that should I go for PF or Increment?
    second, i Hope in future it will be necessary for institute to open my PF account.
    how much will be the effect of lagging of one increment in my life?
    please reply... from, WE ALL

    ReplyDelete
    Replies
    1. This is a question you must decide for yourself Anonymous. This years Increment will definitely impact all the increments you will get in the rest of your life. At the same time, PF means your employer has to contribute an extra 12% of your basic (to an upper limit) every year so I think going for EPF would be a better choice

      Delete
  60. i am unemployed and my father is a railway employee. i want to know whether income tax cuts for my father if i get a pancard

    ReplyDelete
  61. Hi,
    My Previous Employer not mentioned Exit Date on the UAN Portal.
    What should i do..??

    ReplyDelete
    Replies
    1. Contact your employer and request them to update your last working day with EPF correctly

      Delete
  62. Hi Anand
    At the time of my pf credit my account got deactivated. So I dint receive d amount. What shud I do next to get my pf amount?

    ReplyDelete
    Replies
    1. You should contact the PF Office and request them to re-issue the payment citing the reason for the same

      Delete
  63. Hi Anand,
    I was working with L&T(ecc) in 2010 where they make me signed a bond of amount 200000 for 2 years, I joined it in July 2010 and left the same in Aug 2011. Now when I tried to withdraw my PF , The HR said first pay the bond amount.
    Would you please let me the rules in this case?

    ReplyDelete
    Replies
    1. Rohit, though companies arent supposed to use such bonds to restrict withdrawal or transfer of EPF they still do. As you have signed a legal bond, it will be difficult to negotiate but you can try talking to them to see if they will budge

      Delete
  64. Hi Anand, after completing 11 years with an IT company in India I have joined a US based company. Can i withdraw all the money from the PF account? and if yes, will it be taxable?

    ReplyDelete
    Replies
    1. Yes you can withdraw your EPF and it will not be taxable.

      Note: EPS will not be withdrawable since you worked for more than 11 years. You can get the pension though, if you come back to india post your retirement age

      Delete
    2. Thank you for the details. I was not in India for 3 years out of 11 years but I was working with the same company so total number of years for PF calculations will be 8 or 11? My company was not depositing PF for those 3 years as I was on onsite full salary model. Thank you in advance for the details.

      Delete
    3. If PF Was not deposited for a certain number of years, those years will not count towards the total experience years

      Delete
    4. If PF Was not deposited for a certain number of years, those years will not count towards the total experience years from EPF Perspective

      Delete
  65. Sir,

    What if an employee has multiple PF accounts and wants to transfer all of it? Is it possible? Suppose an employee has 3 different pf acounts and wants to transfer all of it to the current PF account, is it possible?

    ReplyDelete
  66. Dear Anand - I have worked in J&K state for 3 years and now i am working in Delhi , I had contacted PF office to check the procedure of PF transfer however i was informed that PF can't be transferred for J&K accounts as its not centralized with EPFO. J&F EPF service operates as separate state entity hence i opted to withdraw my J&K PF
    Wanted to check if it will be subjected to TAX as per premature withdrawal rule ( Service for 3 years only ). or there can be any exception as i was wanting to transfer it however its not possible.

    ReplyDelete
    Replies
    1. Dear Ajay, as far as I know, this withdrawal will be considered taxable as the EPF Acc did not complete 5 years even though you actually wanted to transfer it.

      Delete
  67. Hi Anand, i have a question in my mind. Actually i am working in a BPO and i have a pf account but per the govt. laws pf consist two parts of contribution one is employee contribution and other one is employer contribution. and if i am not wrong employer contribution is not included in employee CTC. but in bpo's what they do, they include both the employee contribution and employer contribution in the employees CTC, so is this legal? because i think employer contribution is the part which employer contribute which should be apart from our CTC.

    Regards
    Bhupendra Sagar

    ReplyDelete
    Replies
    1. Hi Sagar, actually it is perfectly legal if they include employer contribution in CTC. However, it is illegal if they show your CTC as X rupees and say they will contribute EPF over & above the CTC and eventually deduct the PF From your CTC

      Delete
  68. Hello Anand

    Thanks for taking out time to write such important information which always is a matter of worry for every employee. I have a question. when i filled the PF form, i was unmarried so i had nominated my parents. now i am married and resigned. however while withdrawl i do not remember i nominated my mother or father. Is there a way to know it?

    ReplyDelete
    Replies
    1. Nomination comes into picture when the acc holder dies. since you are alive and done the withdrawal yourself you will get the money and the nominee info is immaterial.

      Delete
  69. I'm with a company for 6 years but since 2 years I'm in Australia and my payroll has been changed to Australian payroll of the same company. Now I' trying to quit job to go for higher studies. Now if I withdraw PF will that be taxable ?

    ReplyDelete
    Replies
    1. Since you were in india payroll for only 4 years, i think the withdrawal will be taxable

      Delete
  70. Hi Anand,

    I have resigned from my day job after working for 3 years and 10 months(total service) to explore other career options. I am not planning to take up job any time soon, so should I withdraw my EPF or let it be idle? Also, please let me know if I need to discuss this with my employer before my last working day.

    Thanks and regards,
    Prasad

    ReplyDelete
    Replies
    1. As you are not going to join a job in the near future, it is advisable to withdraw your pf. keeping it idle is not a good idea since the acc stops earning interest once it is dormant and in future when you take up a job maybe after 1 or 2 years, the transfer procedure will be quite difficult considering the time passed.

      Yes, you should talk to them before the last day so they can prepare the necessary withdrawal formalities

      Delete
  71. Hi Anand I have query with regards to PF withdrawal and need your expert advice here ?

    I worked with co. X for 4 years and moved on to work with co. Y. Now its almost a year and my current employer has open PF account separately and they are not insisting me to provide UAN number that i got from my previous employer and i haven't given then my UAN number yet.

    Now i approached my previous employer and requested for PF withdrawal and told them lie that i am currently unemployed and they agreed to proceed my request.

    So the question is will PF dept. get to know that whether currently i am working or not ? will i be able to withdraw the PF successfully without any hassle and what will be the TDS deduction and how much time it will take for withdrawal process

    ReplyDelete
    Replies
    1. Firstly - yes it is very much possible that the EPF officials can find out if you are employed or not. If they do, they may reject your request.

      Anyways, if they miss the fact that you are employed and process your withdrawal, it would take about 10-12 weeks for you to get the money and potentially 30% of the amount could be cut as TDS. The entire withdrawal is considered taxable and will be fully taxed based on your current tax slab

      Delete
  72. I resigned from my company on April 30 and applied for PF in July first week.
    Pf department of my company said they have successfully forwarded the application to PF office.
    If I am joining in a new company now, will that be a problem?
    I mean I had attached a letter signed by me saying that I am unemployed and wish to withdraw.
    Now if they validate and by the time if I join another company , doest that violate any law? Do I have to wait until the amount credits for joining new company?

    ReplyDelete
    Replies
    1. Hi,
      ideally the withdrawal is allowed only if you are going to be away from a job for atleast 3 months after resigning from your old job. So, per that logic withdrawal in early july is ok but the expectation from PF office is that you do the withdrawal when you are at home and if you are joining a new job you must transfer the PF and not withdraw.

      This may be a problem if they try to validate but its already mid august so, law wise this is one of those gray areas thing.

      Delete
  73. Hi Anand,

    I have worked for a company in Kolkata for 4 years, then in Delhi for 5 years and now in a company for the last 1 year. Now I have resigned from my current company and travelling abroad. I have not got my PF transferred from my company in Kolkata to one in Delhi and now the current company. I was thinking of withdrawing the amount, but read through the tax consequences. What is the best option I have?? Can you advice.

    ReplyDelete
    Replies
    1. As you are no longer living or employed in India, the option of transfer is ruled out and since you did not transfer the old PF Acc's to the new jobs, each PF withdrawal wil get taxed separately and you will incur full tax liability on the combined withdrawn amount from the 3 jobs.

      If you get the money this year, whatever income you had india for this financial year will get added to this withdrawal amount and the total will be your taxable income and you will taxed based on the tax slab you will come under

      sorry, as far as I know, this is the only option you have

      Delete
  74. Hi Anand,

    As i know if i want to withdraw PF for home loan , Minimum service of year should be 5-7 years. So here my concern is i have total 6.5 years of experience in that i have switched 3 companies but for the first company 1 year 8 months i didn't transfer the PF to the second company and the amount got credited to my account . but for second company i have transferd it(2.9 year) to current company. So now whether i am eligible for Home loan or not . Total Years of service with The membership with PF i have but whether 1 year 8 months will be considered or not .

    ReplyDelete
    Replies
    1. If you did not do the transfer and actually got the money - No, it will not be considered. For more info on withdrawal rules for EPF see here: http://anandvijayakumar.blogspot.sg/2010/12/can-i-withdraw-money-from-my-employee.html

      Delete
  75. Hello Sir,
    I Worked In An Organization For Almost 4 Years And 4 Months, And I Resigned My Job On March 02,2016.
    I Submitted My PF Form(Form 19)And It Got Approved, But I Missed To Submit My Form 10C(Pension contribution) along with my form 19.
    Now Is It Possible To Submit My Form 10C Separately?? And Also Am I Eligible To Get The Pension Amount Through Form 10C"??


    ReplyDelete
    Replies
    1. Usually both forms are submitted together so do check before you submit again (yes you should be able to submit it separately if it was missed first time)

      By the way, hope you are currently on a break from work because withdrawal during job switching is illegal and also fully taxable.

      for how much pension you will get see here: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
    2. Hello Sir,
      Thanks for the reply. Yes i have missed to submit 10C. Any other documents to submit along with 10C when am separately applying for it.
      Yes, I am on a break from work.

      Delete
    3. Your employer should have all the info. dont worry

      Delete
    4. Thanks Sir, But now am outside India so I dont have any contact with my Employer. Can I authorize someone to go to the PF office and submit the form 10C? Can you also tell me what all documents should I submit along with 10C?

      Delete
    5. Hi Sir, I am not able to find the answer for the question."But now am outside India so I dont have any contact with my Employer. Can I authorize someone to go to the PF office and submit the form 10C? Can you also tell me what all documents should I submit along with 10C?"

      Could you please post the answer again?

      Delete
    6. Hi - No, as far as i know, you cannot nominate others to withdraw pf funds. You will need to finalise formalities the next time you visit india

      Delete
  76. Sir,

    I have got my yearly statement from my employer it shows that closing balance of Employee contribution is 21350 and for Employer 6531 upto 14/06/2016, if i resign my job how much amount i will get in my hand ...

    ReplyDelete
    Replies
    1. You will get both those amounts plus any interest that the account might earn in the time between now and the time you withdraw

      Delete
  77. Thank you sir,,, Then i need one more information ... my initial which is appears in PF shows is wrong because of my employer... made wrong entry...
    CORRECT - ILAKYA D
    WRONG - ILAKYA K

    I have given a request letter to EPF office through my employer and also to update my KYC details with Employer Digital signature approval but nothing has done from there side. is there any method to do it online. Kindly help sir because one of my frd says that this is will create trouble while withdrawing my PF.

    ReplyDelete
    Replies
    1. yes your friend is right, if the name doesnt match it will be a problem in future. But, if the request for amendment is already made, just wait for it to finish. it usually takes a few weeks/months to process

      Delete
  78. Hi Anand Sir, I left my job on 18th july 2016. I am not working now and preparing for govt. exams. Can i submit my pf withdrawal form on 19th Sep as it will be 60 days without being employed. My second query is that I have closed my hdfc salary account. Can I get my pf in my Axis account or is it necessary to have a nationalized bank account? Thanks

    ReplyDelete
    Replies
    1. Yes you can withdraw and it can be any bank account. no restrictions on government banks

      Delete
  79. Hi,

    I have transferred my PF corpus to the new account however as per the UAN portal statement the pension amount is not transferred. Now I am jobless and planning to withdraw both PF and pension funds deposited in my account. Total contribution periof is less than 6 years. In this case do I need to mention both the PF account number while claiming the pension funds.
    Thanks in advance!

    ReplyDelete
    Replies
    1. Pension funds is not calculated by amount contributed each month. Instead it s based on no. of years of completed service. read this: http://anandvijayakumar.blogspot.sg/2013/03/how-much-pension-will-i-get-through.html

      Delete
  80. Hi,

    My date of birth is updated in PF account is not correct. I have updated my PAN details in KYC. Will it be a problem while I apply for withdrawing the fund. Also note that I have sent request to correct the date of birth in my account but it didn't work out.

    ReplyDelete
    Replies
    1. Yes, DOB being incorrect may cause problems in future. submit another request to correct it

      Delete
  81. Dear Anand,
    I worked in a Ltd company for 4.10 years. Due to some problem i left the company for almost 3 months from the date of leaving. Again i joined in the same company after 3 months. My HR is saying that they stopped paying pf on the date you left and that pf number is closed. They are asking to transfer the pf account. What is the effect of non-payment of pf for these 3 months. Leaving the compnay is because of employer only and again employer asked me to join the company. Can u please suggest me what to do for pf contribution for 3 months.

    ReplyDelete
    Replies
    1. If you were no longer on the payroll of the company, you cannot get PF for those months even if you joined the same company back after few months

      Delete
  82. HI Anand ! My last employer is shutting down. I am almost 10 years away from my retirement. My new employer do not deduct epf as they have less employees. So, how would it be possible to withdraw my deposited amount and start the pension after getting retired when the old employer will not be available to sign the forms?
    Thanks in advance for your precious time.

    ReplyDelete
    Replies
    1. employer closing shop doesnt impact pension as long as the EPF Acc was maintained with the regional EPF office. Since your new employer doesnt offer EPF, you can withdraw the PF Corpus and then wait until retirement age to contact the EPF office to start the monthly pension

      Delete
  83. I have left my organisation 6 months back but I didn'take my pf.can I still take my pf.

    ReplyDelete
    Replies
    1. Yes you can withdraw but it depends on how much the old company is willing to help. You can contact them and request for the same

      Delete
  84. Hai Anand I was working for a company from 2008 to 2010 for 2 years.As of today I have not claimed my PF.Can I claim now ?
    Infact even i dont remeber my PF number .Is there any way I can claim the funds ? Please advise

    ReplyDelete
    Replies
    1. Yes you can withdraw but it depends on how much the old company is willing to help. You can contact them and request for the same

      Delete
  85. hi Anand

    Really appreciate the help, you are doing as a gud job here, thanks for all the efforts!

    Now to my query, I had a running PF and pension account from Feb '08 to Oct '15, more than 5 yrs, in Oct 15 I had to leave the country to join my family in the US. Now in Mar'16 I see there is an interest entry in the account, wish to ask if the interest will be paid for a period of 3 years , even if I am not contributing?, else why was the interest paid while I did not contribute from OCt to Mar?

    Also , I have my pension account, pls suggest if this could be withdrawn or I need to add some service in this account to make it 10 yrs , eligible for withdrawal?? ..Thanks again!!!

    ReplyDelete
    Replies
    1. Hi - yes, interest is paid out for inactive account for a certain period (which changes from time to time per govt regulations). But, it usually stops eventually.

      Yes, you can withdraw both the PF and EPS because Pension is only considered if you finish 10 years of total service. here total service means no. of years you worked.

      Delete
  86. Hello sir,
    I have resigned form my present company and i have served only 1 month in that company.......before that i had worked in another company A..... NOW i joined another company.....so can i directly transfer my pf from company A to the present company....without mentionning the company for which i have worked only for a one month....

    ReplyDelete
    Replies
    1. Yes, sure but you will miss out the PF that was contributed in that one month you worked in that company.

      Delete
  87. Hi Sir,
    I am working in a private company for 15 years. I have contributed EPF and VPF amount. Since I have contributed for more than 10 years, If I resign my job , Can I withdraw the full EPF and VPF amount? or I can avail only pension? Kindly clarify.

    ReplyDelete
    Replies
    1. yes you can withdraw epf & vpf. EPS contrib cannot be taken out because you completed 10 yrs. so, you have to wait till retirement age to get pension

      Delete

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