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...

180 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. Hello Anand
    Actually i left my previous organization six months back and i applied for my pf on last Monday 6th 2014 and can you please Tel me how long it will take to get my pf amount????

    ReplyDelete
    Replies
    1. It will take 4-6 weeks from date of Approval. You should get a notification once your request is approved.

      Delete
  30. Hi All,
    Please let me know the process form employer side for EPF Withdrawal.
    Thanks,
    Veerabhadra.

    ReplyDelete
    Replies
    1. Hi - The Process from an employers side is more complex than from an employees side. Not only do they actually submit the filled up forms, they have to attach proof of remitting PF and a lot of supporting documents. Its best if you talk to the company where you are working to know more about this.

      Delete
    2. What are all the supporting documents required?

      Delete
    3. As I said - That is a question to the employer. I am not aware of all the processes from an employers side.

      Thanks.

      Delete
  31. Dear Anand,
    I had one inoperative epf account from my earlier job which I left on July 2009. (The last entry in my epf account due to some pay arrear was in November, 2009). Subsequently, I joined another job in July, 2009 itself and got a new epf account number. I have not applied for transfer of my earlier epf account to the new one. It has been five years. Now I have applied for the transfer. Through your site I learnt that I will not get interest after 36 months of leaving my earlier job i.e. for 2 years interest have not been credited with my old account. But while surfing net I came to know that there is also some order on it that if one transfers his inoperative account to the new one even after 36 months then he/she will get interest with retrospective effect for the period beyond 36 months. Can you elucidate on it. Will I be able to get interest for the entire 5 years.
    G.Singh

    ReplyDelete
    Replies
    1. Gurmeet - I am not aware of any such retrospective interest payout options available. Ideally - leaving your account idle for extended periods is not advisable.

      Anyways - as you are employed right now, you should transfer the current balance in your old/inactive account into your current pf account. Once the transfer completes, the entire funds will start earning interest from that point onwards.

      Anand

      Delete
  32. dear sir,
    my sister is working in an private school in Coimbatore she is paying 2000 rupees as pf and esi from her salary (9000) and she is not given with an account number and pay slip.no evidence of her money payed in pf office.only the employee contribution is there not from the employer side.not only for her everyone in the school is same.please help us.

    ReplyDelete
    Replies
    1. Pls contact the regional Pf office and explain the situation. They can help you.

      Delete
  33. Hello Anand,

    Thanks for your article. It helped clear many of my doubts.
    A few questions about PF withdrawal and tax. I had withdrawn my entire PF in Dec 13 after ~3yrs of work to pursue studies. I noticed that no TDS was deducted(nothing on form 26AS) for the PF+EPS amount. I tried to check on other sites how to pay tax for this amount.

    They mention that Employer contribution + interest on that to be taxed as Salary while Interest from Employee contribution goes to "Income from Other sources". http://www.livemint.com/Money/TEaAmKA3VMXnqV9poS633H/Tax-on-PF-withdrawal-depends-on-your-income-tax-slab.html

    Shall I also add Employee contribution to salary for that year?
    How about the EPS portion? Isnt it taxable?

    Would appreciate if you could shed some light on this.

    Regards,
    MSusai

    ReplyDelete
    Replies
    1. Susai - Yes, your EPF (Employee Contrib, Employer contrib and Interest) is fully taxable if withdrawn before 5 years. Yes, your EPS is also fully taxable.

      Delete
    2. Thank you Anand

      Regards,
      M Susai

      Delete
  34. 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
  35. 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
  36. sir, i resigned my job in 2010 and i claim withdrawal in 2014. will i get interest for the 4 years?

    ReplyDelete
  37. 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
  38. 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
  39. 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
  40. 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
  41. 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
  42. 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
  43. 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
  44. 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
  45. 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
  46. 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
  47. 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
  48. 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
  49. 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
  50. 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
  51. 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
  52. Ananad i am atanu can you tell me when i will change my nomeni that mines is time my mother is my epf nomeni holder recently i will change my nomeni to my wife name so this time i doing a new signature can you tell me this time my current signature is valid , that mines what signature i doing my opening epf from so when i fill up nomeni changing from this time i doing a new signature this current signature is update ?when i withdrawal my epf balance this time i doing a nomeni changing signature so this is valid up?

    ReplyDelete
    Replies
    1. Atanu - firstly, yes you can change the nominee from your mother to your wife any time you want but, this is a peculiar situation. People usually dont change their signature frequently. Yes you can use your current signature and in case a query comes you can file an affidavit to claim that the old signature was yours and that you have officially changed it. Talk to your employer about the form for updating personal particulars. they can help you.

      Delete
    2. ok but how will i prove that the old signature was mine .if i had already forgotten my old signature ?and one question if company is authorized atanu is my employe and work at my company .so my my problam has been solve?and you tell about yes u can use current signature in case query but if no query and my nomini has been change so i understood my . signature is update ?

      Delete
    3. Anand if my company is certify and authorize atanu,is my company employe so can my problem is solve to epf office and how to affidavit and prove old signature is mine, because i already forgotten my old signature. Anand when i will be change my nomini ,This time i doing my current signature you tell me if query come you can file an affidavit and prove your old signature. but one question if not query ,so my signature is officially change,And second time not query to epf office when i withdrawal my pf balance ?And my current signature is officially change?

      Kindly tell me the full information.

      Delete
    4. Atanu - The Affidavit will certify that Atanu forgot his old signature and this will be his new signature going forward. Yes, if your company certify that this is the same Atanu for who they open the epf acc many years ago, the epf office will accept.

      Without doing this, if you try to withdraw using your current signature it will be declined because the new signature may or may not match the old one. Once you submit the request along with affidavit, the new signature will get updated

      Delete
    5. One condition if any problem so how to affidavit and prove old signature is mine, because i already forgotten my old signature and one question when i change my nomine and doing a new signature if not query so i understood my current signature is update when i withdrawal epf money so second time not query?

      Delete
    6. how to affidavit and prove old signature is mine, because i already forgotten my old signature and my employer tell me if you fill up form no2 so your problem solve that is right?and sure ,if when i fill up nomini form it not query so my current signature is valid and second time not query?if i affidavit my old signature so my problem is solve ?
      please dear tell me of full details because i am fill very disturbed.

      Delete
    7. Anand you tell me you affidavit your old signature how to affidavit and prove old signature is mine, because i already forgotten my old signature.One question you tell me when you change your nomini if query so affidavit your old signature but when i change my nomini and doing a current signatrue this time if not qurey so understude my old signature is update

      Delete
    8. Atanu - Dont worry about your old signature. You dont remember it and so there is not much we can do here. Just submit the requisite update forms along with the affidavit and the details should get updated.

      If you are still unclear, visit your nearest EPF Office and talk to them to understand the process better.

      Anand

      Delete
    9. thank u anand and one question when i retire my company is authorize and stamp so this time i doing my current signature so can my problem is solve? and i will be withdrawal my epf balance

      . and one questions my uncle pension ppo no is lost can u tell me what i doing kindly tell the full details.and how to get the pension ppo no and duplicate copy ?

      Delete
    10. Atanu - If you dont submit the affidavit and change your signature before you submit the withdrawal, your request to get your money may get rejected due to signature mismatch.

      What ppo number? I couldnt understand. Is this the EPS pension account or some other pension account?

      Delete
    11. Anand one time i tell you i forgot my old signature to epf account so you tell me you affidavit your old signature if you query this time show your affidavit documents .what i don't understand when i show my affidavit document because i am not sure my old signature has been change .Yes when i withdrawal my epf balance if epf office ,tell me your old signature has been not match ,this time i will so my affidavit documents?

      Delete
    12. Sorry Atanu - I dont understand your Q. If you want your old signature changed, you need to submit an affidavit. Yes, if the signature does not match, in future when you submit the withdrawal request, it will be rejected.

      so, what is the confusion here?

      Delete
    13. Anand one time you tell me if query and your signature is not match .so affidavit your old signature .ok can you tell me when give the affidavit copy ,mines because my signature has been change ,i just forgot my old signature ,what i doing so when not match my old signature and my emplyer tell me atanu your signature is not be match this time i give the affidavit copy.

      Delete
    14. Sorry, I do not understand your Question. Have you got the affidavit or not? did you submit it?

      Delete
  53. 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
  54. 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
  55. 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
  56. 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
  57. Hello Sir,
    Your blog is awesome!!! Lots of informations I got from your blog. Please keep it up forever.

    I have one doubt . I want to close my old pf account but my surname is wrong on it . What should i do for this? Either i close without rectifying the surname or first correct the surname and then close.
    Will it possible to close the account with wrong surname?I have seen the form 19(ie account closure form) , no where its mention account name . Is it possible to give family account no.?

    ReplyDelete
    Replies
    1. Rashmi - Yes, updating the surname would be a good idea to proceed further. The name in the bank account that you are submitting (to receive the withdrawal money) and the name in your PF Account must match exactly. If the name does not match, then you should update your PF Acc info to reflect the correct details (as in your bank) and then submit the request.

      The bank account must be individually held by you. Joint accounts and accounts of other people in your family will result in your request being rejected

      Delete
  58. 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
  59. I AM WORKING IN A PRIVATE SEED COMPANY FOR 4 YEARS, I AM GOING TO LEAVE THE JOB. ALONG WITH EPF CAN I GET PENSION FUND AMOUNT ALSO. PLS REPLY

    ReplyDelete
  60. 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
  61. 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
  62. Hi Anand,

    I worked for 3 years in an organisation and my pf deduction per month is 780 (both). I applied for withdrawal and got amount only one time..Will i get another amount also? like generally people used to get twice so i got a doubt..

    Can you tell me how much amount i am going to get totally?

    ReplyDelete
    Replies
    1. Usually you get two payments - one is the EPS withdrawal and the other is the EPF withdrawal. I think you have goten one of them. Wait for the other.

      About the amount - Sorry, You havent told me how much was deposited each month, when you joined etc. For the latest balance talk to your ex employer they can get you the statement.

      Delete
    2. Can I get Employment Superannuation amount after leaving my Job in 4 years

      Delete
    3. It depends on whether your company contributed for a superannuation scheme or not. Did your company contribute? I have explained in great detail about superannuation in my book on womens guide to finance. check it out here: http://anandvijayakumar.blogspot.com/p/books-by-this-blog-author.html

      Delete
  63. 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
  64. 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
  65. 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
  66. 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
  67. 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
  68. 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
  69. Hi, Anand,
    Thanks for your valuable information . You are doing a great service . Some of the rules and procedures of epf and eps are very strange. They are a pro employer rules. I too have a pf account and after going through the articles and the queries / replies from your blog i have been contemplating on withdrawing my pf money. I,m planning to leave my current organization and withdraw the epf and eps amount after two months. MY question is If I join a new organization , is it compulsory for me to join epf or to transfer my pf account? Is it illegal? I don't want any saving and pension from pf,as i have other plans to deal with my future life. So please help me to clarify my doubts.
    Thank you.

    ReplyDelete
    Replies
    1. Thank you for the words of motivation. Answers to your Q's.

      1. No, these rules might sound pro-employer but are actually pro-employee and helps save money for their life post retirement
      2. It depends. If your new employer offers PF Facility to their employees, it would be mandatory for you to sign-up. This PF is for your retirement corpus. If you are joining a new job that offers PF facility, it is mandatory that you transfer your pf account.
      3. Yes, it is illegal to withdraw your pf when you switch jobs. You can only withdraw if you will be unemployed for at least 3 months

      Best Wishes
      Anand

      Delete
  70. Hope you will help me out, Plz tell me how to complaint against Contractor bcoz
    Main Dehradun mai ek Company mai kaam karta hoon,Humare contractor ne humare EPF account mai humare paise submitt nhi kare jiski har monthly humare salary se cutting hoti thi
    When checking online my epf balance is showing very low also. The responsible person in the company is not responding properly.
    Kindly help me in getting this.my PF office is Dehradun

    ReplyDelete
    Replies
    1. Sorry, I could not understand your Question. The EPF website is almost always back-logged with data and is not correct. If your employer is not responding to your query on epf balance, talk to your pf office. They can help.

      Delete
  71. Hi Anand,

    Please clarify my doubts.

    I worked in a company from April 2010 till May 2014. I am not working anymore. I applied for the PF withdrawal and got the acknowledgement on an SMS stating that the application has been processed. Message received on Aug 13. My monthly PF deduction was Rs.780. I have couple of questions.
    1. My PF number according to my payslip starts with KN/WF/*****/**. But when I received the SMS, my PF number changes to PYKPR******. Is this usual or some mistake from the PF department?
    2. I got the sms on Aug 13, how long does it take to receive the money on my bank account?
    3. I am not able to check the status or my balance online, can you please tell me how to check it?

    Thanks

    Joe

    ReplyDelete
    Replies
    1. Joe - See answers
      1. No, it is not normal. If the acc number is not correct it is quite possible that the info is wrong. Talk to your old employer and find out whether your request was processed successfuly
      2. Usually 6-8 weeks
      3. Once an account is closed (request processed) you cannot check the balance online.

      Anand

      Delete
  72. I have been working for more than 7 years (2008 - till date) but the total PF balance (when i checked online on www.epfindia.com) is less than 50 thousand. Can there be an error in calculation as my salary is not less. Also i've never withdrawn any PF amount, i've always transferred it from one company to another. Pls guide me as to how can i check the correct PF balance.

    ReplyDelete
    Replies
    1. Yes, it is quite possible that the pf website is wrong. The data is not up to date and has a backlog as well. Its better you get a pf statement from your employer to know the latest balance.

      Delete
  73. Hi Anand,
    This is really a great blog. Thanks
    My question is on PF withdrawal. Below are my service details.

    1. In service from July-1999 to July-2010 (PF account was active)
    2. Not in service from Aug-2010 to Apr-2011 (PF account was in-active)
    3. In service from May-2011 to May-2014 (New PF account created and previous PF account amount was transferred to this account)
    4. Not in service from June-2014

    My total years of service is 14 years but there is 9-month break in between.
    a) Can I apply for full withdrawal of PF?
    b) I read in the blog that after 5 years of continuous service, there are no tax implications on received amount. Though my total years of service is 14 years, last 3 years has been in continuous service (due to the 9-month break). Will my received amount be tax-free? Since the word "Continuous" was mentioned, I am not clear about this.

    Thank-you.

    ReplyDelete
    Replies
    1. Hi Anonymous, thanks for your feedback. see answers:

      a. Yes you can (assuming you are not taking up any job now and will be taking a break for at least 3 months)
      b. The 5 years is - the total age of the PF Acc. Though your current job is only 3 years, you did transfer the earlier job of 11 years and making total as 14. So, your withdrawal will be tax free. Note that you will only get EPF. As you crossd 10 years of service, EPS will not be paid out

      The continuous is just to say that your account should be getting pf contribution every month you were employed. Breaks are perfectly fine. Just that, they wont be counted as experience.

      Delete
  74. 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
  75. 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
  76. 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

© 2013 by www.anandvijayakumar.blogspot.com. All rights reserved. No part of this blog or its contents may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the Author.

Google+ Badge

Google+ Followers

Followers

Popular Posts

Important Disclaimer

This website or Author does not provide stock recommendations. The purpose of this blog is to educate people about the financial industry and to share my opinion about the day to day happenings in the Indian and world economy. Contents described here are not a recommendation to buy or sell any stock or investment product. The Author does not have any vested interest in recommending or reviewing any Investment Product discussed in this Blog. Readers are requested to perform their own analysis and make investment decisions at their own personal judgement and the site or the author cannot be claimed liable for any losses incurred out of the same.