Introduction
THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
This act is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to the workers. At present, the Act and the Schemes framed there under provide for three types of benefits –
- Contributory Provident Fund,
- Pensionary benefits to the employees / family members and
- Insurance cover to the members of the Provident Fund.
The object of the Act in 1952 was the institution of the compulsory contributory Provident Fund to the employees to which both the employee and the employer would contribute. The Employees’ Provident Fund Scheme was accordingly framed under the Act and it came into effect from 1-11-1952. Initially the title of the Act was, “The Provident Fund Act 1952″.
The provisions of the act extend to whole of India except the State of Jammu & Kashmir and also the State of Sikkim where it has not been notified so far after its annexation with the Union of India.
Applicability
All the establishments employing 20 or more persons (5 or more incase of Cinema Theatres) are brought under the purview of the Act from the very date of set up subject to fulfillment of other conditions. The provisions of the Act apply on its own force independently.
Those establishments which do not have the prescribed number of employees but willing to register themselves to provide the benefits of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office.
Definition of Wages
In this act, Wages means and includes Basic + Dearness Allowances, Cash value of food concession and Retaining allowances, if any.
Eligibility
- An employee at the time of joining the employment and getting wages up to Rs. 6,500/- is required to become a member.
- He / she is eligible for membership of fund from the very first date of joining a covered establishment.
Provident Fund Contribution
The provident fund contributions consist of contribution both by Employee and by Employer.
Employee Contribution
Provident fund contribution is recovered @ 12% of wages from employees who earn up to a maximum wage of Rs.6,500/- p.m. However, employees can contribute more than this statutory maximum which will be considered as Voluntary Contribution.
Voluntary Contribution
- An employee can contribute voluntarily over and above the stipulated rate of PF contribution by opting for Voluntary PF scheme at any rate as he / she desires i.e up to 100% of Wages.
- However, the contribution to VPF should be a certain % of wages and not a fixed amount.
- But the employer is not bound to contribute at the enhanced rate.
- It is suggested that the enhancement can be done at the beginning of the financial year for comfort level of calculation.
Employer Contribution
- Employer is also required to contribute towards provident fund; the deduction rate is same as employee’s contribution i.e. 12% of the wages.
- Of this 12%, 3.67% goes to Provident Fund and the balance of 8.33% goes to Pension Fund.
Pension Fund
To avail pension benefit, the member
- should have completed 10 years of continuous service or
- he / she should have attained the age of 50 years or more.
- he / she doesn’t receive any other EPF pension
The member will receive the Pension amount on a monthly basis after attaining the age of 58.
If the employee does not fall in the above criteria, he can apply for withdrawal of Pension monies.
Employees Deposit-linked Insurance Scheme (EDLI):
- Apart from contributing to provident fund and pension fund, employer is also required to contribute towards Employee Deposit Linked Insurance Scheme.
- The rate of contribution is 0.5% of the wages.
- The employees need not contribute any thing towards this scheme.
- In case of death of a member, his / her nominee will get a maximum of Rs.60,000 from this scheme.
Administrative Charges
- The employer is also required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
- Employees need not contribute any thing towards these charges.
Remittance of Contribution
The employer is required to pay the contribution recovered from employees into the provident fund account on or before 15th of the following month, for example, if the contribution is deducted for the month of October 2008, it should be remitted on or before 15th of November 2008.
Monthly Returns
The monthly returns, as listed below, should be submitted on or before 25th of the following month (i.e. October 2008 monthly returns should be submitted on or before 25th of November 2008).
- Form 12A along with Triplicate copy challan,
- Form 5 & Form 10 containing employees additions and deletions and
- Form 2 (Revised)
Annual Returns
Every year annual returns should be submitted on or before 30th April. The period for the annual return is March to Feb. Annual returns consist of Form 3A and Form 6A.
Form 3A – Member’s Annual Contribution Card:
Form showing month wise recoveries towards E.P.F and Pension Fund in respect of a member the concerned financial year to be furnished by the employer before 30th April of the following year.
Form 6A – Consolidated Annual Contribution Statement:
This form provides annual contributions of each member of the establishment. A vital form for compiling the annual Provident Fund statement of a subscriber. To be submitted by 30th April.
Annual Account Statement
After the close of each period of contribution (March to Feb), annual statements of accounts will be sent by PF Department to each member through the factory or other establishment where the member was last employed.
The statement of accounts in the fund will show
- opening balance of contribution with interest of both employer and employee
- amount contributed during the year by both employer and employee,
- interest earned on the contributions made during the current year
- total of contributions by both employer and employee
Members should satisfy themselves as to the correctness of the annual statement of accounts and any error should be brought through the employer to the notice of the Provident Fund Office within 6 months of the receipt of the statement.
Withdrawal of Provident Fund and Pension Fund
A member is eligible to apply for withdrawing his provident fund and pension fund only after 2 months from the date of resignation, provided that he / she is not employed during the said 2 months.
The member should submit Form 19 to withdraw his provident fund dues on leaving service/retirement/termination.
To claim pension, the member is required to submit Form 10 C.
The member needs to fill in Forms 19 and 10c and get it signed from the previous employer and submit it to the provident fund office (in many cases, the employer will themselves help by submitting the forms).
Normally, it takes about 40 days to have the monies credited to the bank account of the member after submission of the relevant forms.
Taxability: The withdrawals are exempt from tax if the concerned employee has rendered continuous service of more than 5 years. Otherwise, it would be taxable at the applicable slab rates.
Transfer of Provident Fund monies from previous employer to current employer
A resigned employee who joins another company is left with an option of transferring the PF monies from his previous PF account to the current PF account, by filling the Form 13.
Form 13
- When an employee joins new company and he wishes to transfer his previous company provident fund amount, he should inform the HR department or Accounts department of the new company.
- The employer will issue Form 13, in which the member has to fill the details of previous company like – name, address, provident fund account number and address of the provident fund office where the account was held.
- On form 13, the signature of the previous employer is not required.
- Once he fills the required details and submit it to the current employer, the current employer will forward it to the provident fund office for transferring process.
- The time taken for transferring the fund from one account to other account normally takes about 40 days from date of submission.
Problems Faced in withdrawing / transferring Provident Fund monies and the remedies:
On many occasions, members face problems in withdrawing the provident fund monies. Some of the normal reasons for the problems and the solutions to overcome these are quoted here below:
Mismatch of Signature of the employer
Employer should inform the PF office through a formal letter authorizing the signature of the concerned authority. If the PF officer is still not convinced with this letter, a fresh application has to be submitted again.
Mismatch of Signature of the member
If the signature mismatches or they have changed their signature, they need to inform the provident fund office through their employer. If the PF officer is still not convinced with this letter, a fresh application has to be submitted again.
Mismatch of Provident Fund Account number of the member
If the PF Account number has been mentioned wrongly by the member, then the application will be returned back to the employer. The employee has to correct the details and get it counter-signed by the employer.
If the PF Account number has been reported wrongly by the employer in their annual return, then it needs be corrected through a formal letter to the PF department explaining the problem and correcting the same.
Incorrect bank account details furnished by the member
The correct details with regard to account number, name of the bank, branch address, MICR code of the bank (MICR is a 9 digit number printed on the cheque leaf, next to the cheque number) have to be filled in again and re-submission required.
Incorrect address given by member
The correct details have to be filled in again and re-submission required.
Mismatch of date of joining / resignation
If the date of joining / resignation has been mentioned wrongly by the member, then the application will be returned back to the employer. The employee has to correct the details and get it counter-signed by the employer.
If the date of joining / resignation has been mentioned wrongly by the employer in their annual return, then it needs be corrected through a formal letter to the PF department explaining the problem and correcting the same.
Communication from PF department while processing the request would not have reached the employer
The employer / employee needs to check with the PF office and find out the reason for not receiving the communication. If not traceable, then a request has to be made to the PF office for re-sending the communication.
Failure of employer to remit the PF amount recovered from members to PF Account
It is the duty of the employer to remit the PF monies (which are recovered from employees) to the authorised banks for the credit of PF department. It is a statutory violation if the recovered monies are not remitted on time.
If the employee comes to know that the employer has not remitted the PF monies that are recovered from him, then he can lodge a complaint to the PF office against the employer insisting for the recovery.
Member might have changed his / her official name and the same has not been informed to the provident fund office
If the employee has changed his / her name and the same has not been informed to the PF office, then the application will be rejected when the PF office compares the data with the returns being filed by the company. In such a situation, the concerned employee has to request through a formal letter informing about the change in name and also, attach the notification copy of the Gazette publication.
Change in Authorised Signatory of the employer when the application is in process
Sometimes, the authorized signatory would have been changed when the application is in process and it would lead to rejection of the application. In such a situation, the employer has to get the application re-signed by the concerned authorized signatory who is active at the appropriate period of time.
Problem during Transfer of Monies
In the case of transfer and when the previous employer is an exempt establishment (which means, having own PF trust), the procedures is that the current employer should forward the transfer form (Form 13) to the previous employer who will process a cheque (after validation) in favour of PF office of the current employer and it will be sent to the current employer. It becomes the responsibility of the current employer to submit the cheque along with a request letter to the PF office for transferring the monies. Here, the normal problems that might occur are:
- previous employer might have changed their address
- Documents lost in transit / do not reach the concerned department
- delay in processing the application for reasons like tedious internal processing procedures, processing person is on vacation / busy on some other assignments, signatory not available etc
Note: In all the above situations, the employee is required to be in contact with his employer regularly and chase them constantly which will speed up the process.
Advances from PF Account
The members are eligible to withdraw monies as advances from their PF Account for purposes like marriage, education, medical treatment etc, subject to the prescribed conditions as mentioned here below. Note that the said advance is totally tax-free and interest-free.
Marriage
- only for self, son, daughter, brother & sister
- the member should have completed at least 7 years of service (not necessarily with the same employer, but should have transferred the PF monies from previous employers for consecutive period of 7 years)
- maximum of 3 times in the entire service
- maximum amount is 50% of employee’s share at the time of tendering application.
- the member should apply in Form 31 through employer
- marriage Invitation card should be submitted along with form as proof for marriage through employer.
Education
- only for self, son & daughter
- the member should have completed at least 7 years of service (not necessarily with the same employer, but should have transferred the PF monies from previous employers for consecutive period of 7 years)
- maximum of 3 times in the entire service
- maximum amount is 50% of employee share at the time of tendering application
- the member should apply in Form 31 through employer
- Bonafide certificate duly indicating the fees payable from the educational institution.
For Medical Treatment
- only for self, spouse, son, daughter, dependent father & mother
- applicable for major surgical operation in a hospital and 1 month or more hospitalization for the operation or suffering from TB, leprosy, paralysis, cancer, mental derangement or heart ailment.
- For this purpose, no minimum service is required.
- The members should obtain certificate from ESI or from employer that E.S.I. facility are not available for the member.
- A doctor (or registered medical practitioner) of the hospital certifies that a surgical operation or hospitalization for 1 month or more is/was necessary.
- Incase of TB or leprosy etc, a specialist doctor should certify
- Maximum amount given is 6 times of wages or full employee share, whichever is less.
- A certified proof for the said decease has to be submitted along with the application in Form 31 through employer.
For Purchase of Site and Construction there on
- Should have completed 5 years of services
- members contribution with interest should not be less than 1,000
- Site should be free from encumbrances
- Site should be in the name of the member or spouse of the member or in the joint names of the member and the spouse
- The maximum amount given is least of Basic+DA for 24 months or total contribution & Interest or total cost of site.
Purchase of Flat/House (from agency/promoter)
- Should have completed 5 years of services
- members contribution with interest should not be less than 1,000
- House/Flat should be free from encumbrances
- Flat/house should be in the name of the member or spouse of the member or in the joint names of member & spouse.
- The Agreement with the Flat promoter should be registered under the Indian Registration Act.
- The maximum amount given is least of Basic+DA for 36 months or total contribution & Interest or total cost of site.
Alteration / Modification of House
- Should have completed 5 years of services
- only after 5 years of completion of construction of dwelling house
- the maximum amount given is 12 months Basic+DA or member share of contribution with interest, whichever is less.
Repayment of outstanding principal / Int. of a loan obtained from State Govt, Regd Co-operative Society, State Housing Board, Nationalized Bank and Public Financial Institution.
- Should have completed 10 years of services
- Member contribution with interest should be more than 1,000
- The amount will be paid directly to the agency and not to the member
- The maximum amount paid is 36 Months Basic + Members accumulation with interest or Outstanding Principal plus interest which is sought to be repaid, whichever is less.
For any queries with regard to Provident Fund, pls contact us at bala@cogzidel.com and we will be glad to assist you.
Tags: PF, Provident Fund, transfer, withdrawal
This entry was posted on Wednesday, November 19th, 2008 at 9:59 pm and is filed under Statutory Matters. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Dear Sir,
I worked in Company A from Aug 2006 to July 2008. After that, i joined Company B (01/09/2008). At Company B, I submited form 13 to transfer PF (On 01/10/2008). How many days it takes to transfer the money?
The status in EPFINDIA Site is: Your Claim is received on 28/10/2008 and is being processed. Kindly try after 30 days from Submission.
Thanks
Kiran
Hello Kiran,
Thanks for writing to Cogzidel.
Normally, it takes about 40 days for transfer / withdrawal.
Since it has crossed more than 6 months, you can do the following:
- Firstly, check with your current employer whether they have received any communication PF department.
- If they have not received any letter from PF department, then you can check with your with previous employer whether they have received any letter from PF department
- The third option is to approach the PF office where your previous employer maintains the PF account. The PF deparment can let you know the current status of your application.
Regards
Cogzidel Team
Query raised by Ms. Deepti:
Hi,
I want to know, when we are planning to take employees on Payroll, if any employee wants to exempt himself from PF due to salary slab, is it possible? If yes, then what documents are needed from employer’s and Employee’s side?
———————
Answered by Cogzidel:
If the basic pay of the employee is more than Rs. 6,500 a month, the employee may be exempted from deduction of PF. In such cases, please get Form 11 signed from the employee and also take a declaration stating his salary-break-ups and his/her consent for not availing the PF benefit and keep it in your record.
Regards
Cogzidel Team
Query raised by Mr. Sachin Ghuge:
I had resigned from my earlier company; my last date of working was 06-11-2007. I was present for 17 days; my Notice period was 25 working days. Hence my earlier employer is not going to clear my PF. Even I was sent form 13 through my current employer to the earlier employer, but they didn’t forward my form to PF department. My earlier PF A/c was in Silvassa; now it is in Mumbai. Please guide me how to recover / Transfer (to current PF A/c) my PF ; Pension Fund money. Also guide me on, whether PF dept. will issue any Acknowledgement after receipt of Form 13 or PF Withdrawal Form.
———————
Answered by Cogzidel:
You can transfer the P.F. from your previous company to current company. You fill the Form 13 get it signed by your current employer. You can meet Public Relation Officer of Provident Fund Office in Mumbai and appraise him about the problem, he will guide you about how to proceed further.
You can also get acknowledgement once you submit the Form 13 on request.
Regards
Cogzidel Team
Query raised by Mayur:
Dear Sir,
I was working with xyz company for last two years. I had given my resignation letter to the company last three months back however it is found that my PF account is still not credited. They say that it will take time to credit this amount to PF dept.
What should I do? Where and how should I complaint to the PF dept.
Mayur
———————
Answered by Cogzidel:
1st Case:
You can apply for withdrawal of PF only after 2 months from the date of resignation.
After 2 months you have to approach your employer, expressing your willingness for withdrawing PF, they will give you 2 forms Form 19 and 10C for withdrawing PF and pension respectively.
Once you fill and submit the forms to your employer, they in turn will submit it in the PF office. It will take a maximum of 40 days for the amount to get credited in your bank account.
2nd Case:
You can ask your employer a probabilistic time by which your PF amount will be credited. You can wait till then and even after that period if your employer does not credit the money, you can approach the P.F. commissioner and explain him about the problem, he will take necessary action to get the money credited in your account.
Regards
Cogzidel Team
Query raised by Mr. Eswar:
I have applied for my previous employer PF account closing. I didn’t receive the PF amount and when I checked it has dispatched on wrong bank account number.
When I enquired regarding this in PF office, they told that they issued the payment in two modes (cheque and ECS), and the payment of cheque is returned to PF office and they told that will reprocess it. Also told that the another payment of ECS has not returned to them and told us to enquire about it in concerned bank. When we enquired in bank regarding this, the bank people told that ECS payments will get returned the same day of transaction if the account number is wrong.
Again when we checked with PF office regarding, they were saying that it’s not returned, once it gets returned, then only they can process.
What to do with this? PF office is saying that the payment is not returned and bank says it’s already returned. And this transaction happened 3 months back, PF office says still the ECS payment is not returned.
———————
Answered by Cogzidel:
You can get the confirmation from bank by way of letter addressed to PF department, confirming that they have returned the fund to the PF office / they haven’t received any instruction for such credit.
Once you get the confirmation from the bank, you can approach the P.F. commissioner and appraise him about the problem and he can help you in processing your amount.
Regards
Cogzidel Team
Query raised by Sanju:
Hi Friends,
I want your help and guidance. I have submitted my PF application with my previous bank account details but now that account is not active. I want to update my present bank account no. How can I do that? Please help and guide me.
———————
Answered by Cogzidel:
You can meet the PRO in P.F. office with the acknowledgement you got while submitting the Application.
You can explain him about the change in the bank account number you have given in the P.F. application.
The PRO can guide you in changing your bank account number from old to new in the P.F. application form.
Regards
Cogzidel Team
Query raised by Gaikwad Sudhir:
Dear sir,
Plz guide me for following queries:
1) When we calculate individual account of employees in 6A, total amount comes less than we contributed. How to do adjustments?
2) I have got registration in Feb 2009 at that time I have given Rs.2000 D.D. with application, as total wages paid during Feb 2009 was 9502, I have filled challan but now how to fill up 12 A form.
Thanks & regards.
———————
Answered by Cogzidel:
1. If total of individual contribution is less than the actual contribution you made, then there is no need to do adjust. You have to do the adjustment only if the total of individual contribution is more than actual contribution you made.
2. Filling of Form 12 A is simple and same as filling P.F. challan. You have to fill P.F. wages, employees contribution to P.F., employer contribution to P.F., Pension & EDLI, Admin charges paid to P.F. and inspection charges paid towards EDLI.
3. You have to fill date on which PF was credited (this will be in your copy of PF. challan along with bank seal)
4. You also need to fill employees joined during the month, left during the month & total employees on the last date of the month.
Regards
Cogzidel Team
Query raised by Stephenson:
Sir,
Pls let me know the procedures & documents required for obtaining loan for house renovation. I have completed 6 years of service in the organisation.
Regards
Stephenson
———————
Answered by Cogzidel:
The procedures and documents required for obtaining loan for renovation is as follows:
1. You should have completed 5 years of service.
2. The property should be either in your name or in your spouse name or in the joint name
3. You should provide proof for renovation like certificate of renovation etc.
4. You should apply it in Form 31, through your current employer.
5. You will get loan which will be 12 times of your wages.
6. The amount will be credited to your bank account.
Regards
Cogzidel Team
Query raised by Sanju:
Hi Team,
I have submitted my PF application with my previous bank account details but now that account is not in active. Now I want to update my present bank account details. How can I do that and one more request long back I have submitted (5 months) my PF application but till now no response from PF office. Please do the needful and guide me.
Please guide me how to re submit the form and how and where can I get the form, because I already approached PF office but no one is responding to my query and this busy schedule I can’t run around the PF office all the time.
Please do the needful.
Thanks and Regards
Sanju
———————
Answered by Cogzidel:
You can meet the PRO in P.F. office with the acknowledgement you got while submitting the Application (If you had submitted the application through your previous employer, you can request them to give the acknowledgement receipt).
You can explain him about the change in the bank account number you have given in the P.F. application.
The PRO can guide you in changing your bank account number from old to new in the P.F. application form.
You can also check with PRO, the status of the application form submitted 5 months back.
Regards
Cogzidel Team
Dear Sir,
I am Montu Sharma I worked with a company named XXXX, Ludhiana.
I left that company in May 08 and couriered my form and documents to EPF office Branch kandivali, Mumbai.
I was told that I would get my amount max in 3 months. But I did not get any call, any mail since then, they never respond over the phone (now, the office phone number is out of service). I have tried to call by phone as well to do follow up with officers, but either call is not attended or it gets busy.
Following documents were dispatched by Speed post from my previous company and received by EPF office. After that i received a mail on 18th March 2009, through my CA who has their office at Delhi and they enquire from my employer’s head office located at Delhi that I will receive refund transfer in my bank a/c with in 20 days but till today I haven’t received it. So I would like to know, is there any way I can find out the status of my Pf refund application?
My PF no is XXXXX
Emp- ID : XXXX
Please do me needful
Thanks
Montu Sharma
———————
Answered by Cogzidel:
You can check the status of your P.F. application from the following link:
http://epfindia.nic.in/indiaepf/loginnew.aspx
If you have not received the amount for longer time (say more than 3 months), it is advisable to apply again after checking with the concerned PF office.
Regards
Cogzidel Team
Hi,
I read your article in one of the website. I have doubt that now i am going to work for two companies where 2 company provide PF of their own. So should i have to maintain two PF account. Please clarify.
Thanks
Ashokan
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Yes, you will have to maintain two separate PF accounts, as the accounts are opened by the respective employers (as required by law).
Regards
Cogzidel Team
Hi,
Thanks for giving valuable information. How about Form16 ? Should I need to get form16 from both the companies. If yes, how should i file these two Form16 to income tax dept.?
Thanks
Ashokan
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
If your answers to the following questions are “Yes”, then you will have to obtain Form 16 from both the companies.
– Are you employed with two employers?
– Do you earn income from both the employers?
– Do you pay tax through both the companies? (Even if your employer doesn’t deduct tax, still you can insist for ‘NIL’ Form 16)
You will have to do a combined calculation of income derived from both the companies, work out the tax, adjust the tax already paid and pay the balance of tax (if any) and then, file your IT return.
In case you need someone to help you for calculation, pls contact us.
Regards
Cogzidel Team
Sir,
I have resigned from XYZ after 4 years of continuous service as post graduate teacher physics due to personal reasons. Regarding the contributory provident fund payment for me, my employer has sent me a letter that I will NOT be provided with the 10% management share as I have not completed 5 years of service. Is this correct, Sir?
It is an autonomous organisation under Ministry of HRD, GOVT of India with regional office at Hyderabad and head quarters at New Delhi.
Jacob k j
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Whether they come under Government or private sector, it is not legally correct on the part of the organisation to hold back the provident fund, including the employer’s share of contribution.
Regards
Cogzidel Team
Hi All,
I understand that if we withdraw the PF before 5 years of continued service to get the amount as tax-free.
I have 5 years continual service started from Jun’2004.
But my previous employer doesn’t have PF option since 8 employees were there.
I joined in another organization from Jun’2005 and still I am associated with the company. From this company only my PF contribution starts.
By Jun’2009, I am going to complete 4 years here.
If I withdraw the PF money, is it tax-free or is it taxable? If it is taxable how much percentage it would be?
What I need to do to get the money as tax-free?
Tamildevi P
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
You should have a minimum of 5 years of service to get tax free PF withdrawal.
If it is less than 5 years, then you are required to pay tax for the amount you get.
P.F. will not deduct any tax from your money; they will credit your full money.
You will have to disclose P.F. amount while filing the returns.
Regards
Cogzidel Team
Hi,
I worked in a concern in 2007 and left the concern during end of 2007. Now i approached the Company and asked for PF settlement. The company is telling that to claim directly. Can u pls suggest me in this case?
Regards
Prabhu.S
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Even if your employer ask you to claim directly, they have to give you a letter addressed to P.F. office, mentioning your name, your P.F. account number and date of resignation.
If you give this letter in P.F. office, they will give you Form 19 and Form 10C for withdrawing provident fund and pension fund respectively.
Once you fill both the forms, you should get it signed by the employer.
You will get the money credited in your account in about forty days from the date of submission.
Regards
Cogzidel Team
Hi,
I came across your article while browsing through the internet for issues related to PF transfer. I had applied for PF transfer but it has been more than a year and nothing has happened so far. Can you let me know the exact process for PF transfer. My understanding is as follows:
a) Submit form at current Employer.
b) Form submitted by Current Employer at the Regional PF office.
c) Details sent to the Regional PF Office of the Ex Employer.
d) Account Transferred.
My question is whether the ex employer is involved in the process in any way. Can you please confirm the same?
Regards
Deepak
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Following is the procedure for P.F. transfer:
1. When you join the new company, you have to inform your H.R. about your intention for transferring the P.F.
2. The H.R. will give you Form 13. It is for transferring your previous company P.F. to the current company P.F.
3. Once you fill up the form, the H.R. will submit it to P.F. office in duplicate.
4. If you have resigned during the middle of the financial year, the PF office will ask for P.F. break up from your previous employer through Form 3A.
5. If your previous company is having a separate P.F. Trust, then the form 13 will be sent to your previous employer by your current employer.
6. The previous company P.F. trust issue the cheque in the name of P.F. and either sent it to your current employer or they directly send it to the P.F. office.
Normally it will take forty days for processing the transfer from your previous P.F. account to current P.F. account.
Regards
Cogzidel Team
Hi,
I worked with a private ltd company for a period of 1.5 yrs minus 15 days.
I received the EPF money for 1 yrs contribution instead of 1.5 yrs. When i asked the PF office for less period receipt, i was told that this is because I have not completed full 1.5 yrs term ie 15 days less.
Is the PF office’s explanation right?
Vijay
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
To withdraw P.F. money, you should have completed 6 months of service i.e. you should be having P.F. account for 6 months or more.
In your case, you are having 1.5 years of service, so you are very much eligible to withdraw full amount i.e. for whole 1.5 years. If your employer had deducted PF amount from your salary right from month one and remitted the same to PF office without fail, then you are liable to get the PF for the entire 1.5 yrs (less 15 days).
The explanation you received from the official is incorrect. You can approach P.F. commissioner and explain him about the problem; he can help you in sorting out the same.
Regards
Cogzidel Team
Sir,
I had worked a Pvt. Company in Banglore for 5 months and they deducted my PF of the said time periods, now let me know can i withdraw the said PF amount from PF office and currently i am not having the PF facility. Pplease let me know.
Thanks
Pushparaj
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Answered by Cogzidel:
Thanks for writing to Cogzidel.
To withdraw P.F. i.e. both employee and employer contribution, you should have completed a minimum of 6 months of service i.e. you should be having P.F. account for 6 months or more.
If you have not completed the said period, you will not get the pension amount. You will get only employee (your) contribution to P.F. and Employer contribution to P.F. and not employer contribution to pension fund.
Note: Employer contributes 12% of wages, of this, 3.67% goes to P.F. account and balance 8.33% goes to pension fund.
Regards
Cogzidel Team
Hi Cogzidel Team,
Thanks for effort your doing to help the people.
My issue is:
In last June 2008 i resigned from my previous job .In Dec 2008 i forwarded my PF withdarwal application to the previous employer’s office.
The employer refused to signed the application as leaving of my job was not in sweet moment.
Then i forwarded my application directly to PF office after attesting the signature from bank manger where i hold my account on 26.02.2009.
On 26.03.2009 Pf office sent my application to the employer through their office. The PF office not clearing status of my application.
The organization I left has no system like signing of appointment letter on joining. My appointment was verbal and when i try to get the resignation letter acceptance from the employer he refused for that.
Some amount was also debit in my account which may be balanced against my salary with employer for that month.
Query 1) If employer does not sign my application with marks of any above matter, how can i get my PF.
kindly advice.
Thanks
Mukesh Kumar Sapra
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Since you say, you don’t have either appointment letter or relieving letter as a proof, It is advisable for you to meet the public relation officer (PRO) in the P.F. department and appraise him about your problem. He can help you in sorting out your problem.
You have to provide your P.F. number allotted by your previous company for verification.
Regards
Cogzidel Team
Hi,
I have the following query about EPFO:
1) An employee has resigned after contributing for 5 years in School
having EPFO schemes, the resignation was conveyed to EPFO through Form
12 and 10, but the same employee has join the same school after three
months. He has not applied for the withdrawal. Can he continue his
EPFO schemes, if yes then please tell the procedure.
2) An employee has resigned after contributing for 6 years in School
having EPFO schemes, the resignation was conveyed to EPFO through Form
12 and 10, but the same employee has join the same school after one
year. He has already applied for the withdrawal and he got the
withdrawal amount from both PF and Pension. Can he continue his EPFO
schemes, if yes then please tell the procedure. If not than can he
join the EPFO as new member.
Please tell the detail process for both the query, I am asking this
questions on behalf of the establishment so as to solve the above
mention problem in correct procedure.
Thank you
T. K. Singh
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Ans to Q 1: Yes the member can continue with the same account, the in between period i.e. the 3 months can be shown as non contributory period.
Ans to Q 2: Since the employee, rejoined the same school after withdrawing the p.f. money, he can be freshly nominated as new member of the P.F. by assigning new p.f. number.
Regards
Cogzidel Team
Dear Sir / Madam
I have a query regarding the provident fund. I will be very grateful if you help me in solving the query.
My query is if an employee whose parent company is in a foreign country is working in a subsidiary company in India decides to leave the subsidiary company, will he be able to withdraw the provident fund amount he pays in India?
Other query is in case of provident fund the employee has to pay 12% , but what percent exactly the employeer has to pay?
I will be very grateful if you answer the queries as soon as possible.
Sangeeta Das
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Ans to Q 1. If the current company(subsidiary company) relieves the employee from his service, the employee can very well withdraw his p.f. money.
Ans to Q 2. If an employee pays 12% of his basic to p.f., the employer also needs to pay the same subject to the maximum of Rs.6,500/-
Regards
Cogzidel Team
Hello sir,
I have a doubt on PF.
Say for example employees and employers contribution to PF is 1000 rupees…
and say for example employees is resigning the job…i am sure that employees contribution to PF will be fully settled.. But can company say that they cant give full employers PF and only certain amount can be given?? is that possible?? does indial law accept it??
pls reply me..
Regards,
Muthu
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
If the member wants withdraw the p.f. amount, both employee contribution and employer contribution will be settled together, no employer can hold back the employer’s contribution.
Regards
Cogzidel Team
Sir,
My previous employer is not reday to sign my PF papers. What should I do in this situation?
Venu Kulkarni
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
You can approach the Public Relation Officer(P.R.O) at Provident Fund office. You can appraise him the problem of your employer not willing to sign the forms. He will either send the form directly to your pervious employer for signature or he will advise to get signature in the application from bank manager or from any other Gazetted officer.
Regards
Cogzidel Team
Hello,
I was working in National Public School Rajajinagar and retired on 1st June 2008.I had submitted all forms required for claim of pf and family pension in August 2008.Later I was asked to resubmit some forms and photos. I have submitted all requirements in March 2009. and have received acknowledgement. But till now I have no information about my pf payment. My pf account no is KN/8220/46. Kindly let me know how I could get the claims.
Thankyou,
Sugandha Mahishi.
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
If you have the acknowledgement, you can go to the P.F. office directly, there you can meet the PRO, you can show him the acknowledgement as proof of submission, he can verify and tell you the status of your application form.
Regards
Cogzidel Team
Can u plz tell me how to the get information on PF account ?
Navneet Singh Sahni
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Can you specify your exact need?
If you are an employee and want to know your PF account status, you can go to the P.F. office where your company has registered and meet PRO there. He can help you in knowing the status of your PF account.
Regards
Cogzidel Team
Sir,
I want to know if any pf member completes 10 years of regular service than how we will show his 3 a contribution Like in A/c 1 and A/c 10, I mean what will be propotion of showing the cotribution, suppose his basic salary is Rs. 6500/- pm How his 3 a will contain figure in A/c 1 and A/c 10 Pls clerify
Thanks
Chandel.
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
While showing individual contribution in Form 3A, in the 1st column you have to mention the basic, in the 2nd column you have to mention the employee contribution to P.F i.e. 12% of basic, in the 3rd column you have to mention the employer contribution towards P.F. i.e. 3.67% of basic and in the last column you have to mention the employer contribution towards pension i.e. 8.33% of Basic.
The above procedure is common for all employees irrespective of their services.
A/c no.1 and A/c no.10 comes into picture only when company files its monthly returns in Form 12A and P.F. challan and also while filing annual returns in form 6A, it has nothing to do with individual contribution.
Regards
Cogzidel Team
Dear Sir/Madam,
Is there any option to withdraw the PF amount without going to Employers side. Earlier i was worked in Delhi & presently i am in bangalore. Please confirm….
One more thing present employer is not giving us our PF No. In our Pay slip they are showing only employer code… Employee code is not showing, In one year they are showing two employer code in the salary slip. How it is possible.. we are in a regular pay roll of the company… Please clarify these things….
Thanks & regards,
Manohar T.K
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Even though you are in bangalore, you can download the P.F. withdrawal form from the net, fill it up and courier it to your previous employer, they in turn will fill the required details from their side and submit it to the P.F. department.
Anyway 1st you have a word with H.R. department of your previous company regarding the P.F. withdrawal and they will advice you about how to go forward.
The P.F. department will give only one employer code for employer, they will not give 2 different employer code. So you please check again with your H.R. department about this code, they can help you in clarifying your doubt.
Regards
Cogzidel Team
Dear Mr. Bala
I got your name through Google. I have got a question.
I am a 58 year old man. I have been working in a company located in Gurgaon and the head office is in Hyderabad.I have worked in the company for five years and six months. Now I am leaving the company and will join anotgher company located in Gurgaon itself. I have to retire at the age of 60.
Can I make a final withdrawal of the Contrtibutory Provident Fund.
BEST REGARDS
J KUMAR
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Dear Sir,
Yes you can transfer current P.F. to your new company P.F. and withdraw the money after getting retirement i.e at the age of 60 years.
Since you have completed 58 years of age, you cannot transfer pension. However you can start avail pension from P.F. department.
Regards
Cogzidel Team
my mom had filled form 19 & 10D in oct 08 . she has started getting pension but not got pf sum till now .she need this money urgently for her medical treatment .how she will get tell me as soon as possibleon my email adress.For this i will be greatly thankful.
Namrata
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Either you or your mother can check with your mother’s previous employer regarding the status of the P.F. application. Sometimes if there is any mistake in application form, it will be resent to the employer.
If employer had not received the application, you can directly or through the employer approach the p.f. office, where your mother’s P.F. account number is kept. There you can meet Personal Relation Officer (PRO), explain him clearly about the problem, he can help you in solving the problem.
Regards
Cogzidel Team
In your website, I read that for withdrawing pension fund (employer contributes 12%, out of which 8.33% goes to pension fund and 3.67% goes to provident fund), normally a minimum period of at least 6 months of continuous services is required.
I had joined my company on 02-Jan-2009 and my last day with the company is 30-Jun-2009. In this case, what would happen? Would I get the pension fund? Do I need to get the last day extended to 01-Jul-2009 or 30-Jun-2009 would it be ok?
If this is not a proper link to post my query, kindly guide me with the link where I ask this query.
Your early response would be highly appreciated.
Deepa
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
To withdraw the pension fund you should have completed six months. So it is advisable for you to extend your resignation by 1st July 2009.
Regards
Cogzidel Team
Q:sir my name is Kiran, i worked 1 1/2 year for one of the pvt ltd company,due to some reason i have left the job without informing the employer, now i want to withdraw the pf amount but the employer is not ready to sign the application ,what i have to do in this case i have company seal and signature with me can i put the seal and signature by me itself whether it will not become any problem in getting my pf money what procedure i has to follow to get back my pf amount tell me
and also in form 3a how i have to fill up the contribution made tell me whether i have to write both employee and employer contribution made or what ? i have left the organisation on 10-04-09 which period contribution i has to write in form 3a
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
You can apply for P.F. withdrawal only after completing the 2 months, from the date of resignation.
If your employer is not signing the P.F. forms, please approach the PRO in the P.F. office, where your company has registered. The PRO can help you by sending the application directly to the employer or he will guide you by telling, from whom you can get signature in the P.F. application forms.
You are no more an employee of the company. Using company seal and putting company signature is illegal, it will land you in trouble.
In the Form 3a, you have to mention both employee contribution as well as employer contribution. Since you have resigned in the month of April 2009, you have to mention P.F. break up for the month of March 2009 and April 2009.
Regards
Cogzidel Team
Sir,
I Vishal Agarwal is working presently with XYZ LTD Dandeli. I have submitted revised form 13 at Assitant PF Commissioner Office Hubli on 28/1/2009 by courier service for transfer of my Pension A/C NO MH/XXX from RPFC Pune to KN/XXX.
Till date, I have not got the confirmation regarding same from PF office Hubli. You are therefore kindly requested to help me in this matter in getting my Pensoin A/C transfered.
I would be highly grateful to you in this regard.
Waiting for a prompt reply from your end.
Thanking you,
Vishal Agarwal
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Normally you have to submit the Form 13 to your present employer, they in turn fill the necessary details from their side and submit it in the P.F. office. Normally it will take maximum of 40 days to process the transfer. However you will come to know about the transfer, only when you get annual account statement from the P.F. department.
In the mean time if you want to know about the status, you can go to the P.F. office of your current employer, with due acknowledgement. You can meet PRO, he will help you by getting the required details.
Regards
Cogzidel Team
Dear Sir,
Greetings!
I have changed 3 companies and working in the fourth organisation. I have filled the forms to transfer my PF money toanother PF account. Is there any way where I can check my balance in my latest PF account or if not transfered then the amount in my different PF accounts.
I my willing to buy a flat and would like to with draw my PF money. I’m with my organisation from past 1 year. Is it possible to with draw my PF money even if I continue to work with my current organisation.
Please help…your responses will be highly appreciated.
Regards
Yogesh
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
If you have submitted the Form 13, you can check status of transfer with the current P.F. office. If the transfer is not done for the previous companies, you check the balance with respective P.F. offices.
To apply for any kind of loan in P.F., the member should have completed 5 years of continuous services.
Regards
Cogzidel Team
Is the PF, ESIC and leave rules of India not applicable to the Educational Institutes in Pune?
Can somebody clarify this aspect?
R. Savarkar
———————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
PF, ESIC and Leave rules of India are very much applicable to the educational institution in Pune as well.
Regards
Cogzidel Team
Hai,
Please let me know the minimum and maximum percentage required for arrival of BASIC (eligible for pf deduction) from one’s CTC.
sv ganeshan
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Answered by Cogzidel:
Hello Mr. Ganeshan,
Thanks for writing to Cogzidel.
Regarding the percentage of Basic Pay for Provident Fund deduction, there is no prescribed one in the legislation. However, the PF authorities have been insisting it to be 60% of Gross Salary.
Hence, it is advisable to have the Basic Pay @ 60% on Gross Salary.
Regards
Cogzidel Team
Thank you for the information.
Could you please shed some light on the possibility of a company to pay its entire contribution (including compulsory as well as the voluntary PF) at one go – either at the beginning of the year or at the end of the year? That is, can the entire deduction from the employees wages as well as the contribution from the company be paid at one go? Since this is an urgent matter, a quick reply would be much appreciated. Thanks!
Pranav
———————
Answered by Cogzidel:
Dear Mr. Pranav,
The PF department does not allow the employers to accumulate and contribute the amount in a lump sum. As a matter of Cash Flow program of the Central Government, they insist on a monthly contribution. Non-remittance of contributions on monthly basis attracts interest and penalty.
Regards
Cogzidel Team
Sir,
I am an ex employee of XXX ltd. I have submitted all the papers thru them on Dec 22, 2008. I have waited for more than 100 days and enquired with Khandivilli PF office where my papers have been submitted. They said papers are ready for signature of the officer and i will be getting my money thru bank by April end or by May 7th. Till this moment, i have not received my money (my bank account number was mentioned in the pf withdrawl application). No responses to my phone calls / letters. And they have advised me to come to Mumbai. i stay at Hyderabad. At this juncture i request you to interfere and do the needful to get my money soon so that i can pay my son college fees.
Pls do the needful
Regards
Sastry dvss.
———————
Answered by Cogzidel:
Nowadays it takes more months to get the PF money, due to overflow of PF withdrawal Applications. Anyway if you feel, you want to know the status, you can approach and request your previous employer in mumbai to help you in finding out the status of the application.
We are no way connected to PF office, hence we cannot interfere or do anything with regard to your PF.
We wish you all the best in getting your PF money soon.
Regards
Cogzidel Team
Hi,
I appreciate your wonderful work for PF related education. Please suggest, do we have any way if someone wants to withdraw his PPF contributions for the company where he has resigned in less then 6 months. Or transfer to the new company is the only option?
Thanks
Gaurav Gupta
———————
Answered by Cogzidel:
If a person resigns within 6 months from the date of joining the company, he is not eligible to withdraw his pension amount. So it is advisable for the employee to transfer his previous company PF money to his new company PF A/c.
Regards
Cogzidel Team
Dear Cogzidel team,
Actually, I want to withdraw my PF money and I have forgotten as who was my nominee and his/her date of birth. What should I do?
I am applying through my previous employer. So in this case, can my previous employer can correct in case PF dept finds some error in my application.
Pls suggest.
Manmohan
———————
Answered by Cogzidel:
You can approach your previous employer, they will be having the copy of the PF nomination you filled at the time of joining the company, you can get the correct details from them and fill the PF withdrawal form accordingly.
Regards
Cogzidel Team
Dear Sir,
I have been working more than 5 years in Indian company. Initially first one and half years working in AAA Company and other three and half years working in BBB Company but PF account is same last 5 years.(I had transfer my first company PF account to second company). I purchased a house 3 years before through Government bank loan and I have to pay another 7 years. (I am second owner of the house).
My question:
1. Can I avail the loan from my PF account to repair my house?
2. What are the documents it requires to get the loan?
3. How long it will take to get my loan amount?
4. Any one will visit and estimate our repair portion?
Thanks in Advance.
Regards,
Senthil
———————
Answered by Cogzidel:
1. Can I avail the loan from my PF account to repair my house?
Since you have completed 5 years, you are eligible to avail the loan for repairing your house.
2. What are the documents it requires to get the loan?
You should apply in Form 31 through employer, also you have to submit construction completion certificate. The property should be in your name or in your spouse name or it can be jointly owned.
3. How long it will take to get my loan amount?
The amount will be credited in your account, in about forty days from the date of submission of application.
4. Any one will visit and estimate our repair portion?
Person from P.F. department might come for sight inspection.
Regards
Cogzidel Team
Dear Cogzidel team,
I worked with a nationalized bank for 16 years and resigned in August 1994. At that time, in India, pension had not been introduced in banks. A pension scheme for bank employees was introduced in 1995.
After all these years, can I seek pension benefits from my former bank for which I worked?
Regards
Murali
———————
Answered by Cogzidel:
In the normality, a person will not be eligible for the schemes which are introduced after his / her resignation (unless otherwise it is implemented with retrospective effect).
In your case also it is likely that you may not be eligible for the Pension Scheme, if it was introduced after your resignation. However, pls check with your bank, whether you are eligible to get pension.
Regards
Cogzidel Team
Dear Sir/ Madam,
Its an excellent blog with lot of information on PF and related topics.
I have completed 7 years in a same organisation and I am planning to purchase a flat. I have following queries from you:
1. If I register the flat, meaning if i pay the stamp duty and submit the agreement to the PF office will the money come to my account or it will be paid directly to my home loan financing company??
Because i have been told that it goes to the home loan finance company directly and will not be paid to me in my bank account. Because I am borrowing money for the down payment from my friend thinking i will repay when i receive the money from PF office. And if it is not paid to me and to the bank then i will not be in a position to work out a deal with him and hence buy the flat.
2. What documents should i submit along with the form 10C and how long does it take to get the money.
Kindly advice at the earliest.
Regards
Santosh
———————
Answered by Cogzidel:
Ans to Q1: The money will be credited to your account. Anyway you can confirm with the PRO of P.F. office, where your company has registered.
Ans to Q2: Declaration in the proforma obtained with approval and signed by member. You have to apply it in Form 31 (not Form 10C) through the employer.
Regards
Cogzidel Team
Hi,
I need help from your side.
At a time of joining I have not opted PF facility to my a/c. But now I realize this is very good option to have for better future. Now my employer denies having this PF facility in intermediate assessment year. Kindly suggest me is it possible to have this type of facility in between assessment year Or I have to wait for next year.
I will be very thankful if you provide/assist me in the case.
Yours truly,
Vachan Chauhan
———————————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
Firstly, we don’t understand how your employer gave the option for PF. Because, once an establishment is covered under PF, there is no option. Everyone will be covered by default.
Coming to the question of whether you can opt for PF during the interim financial year, let us tell you that you CAN. The PF department cannot deny admitting someone during the financial year. Hence, you can as well get covered under PF at any time.
Regards
Cogzidel Team
Dear Sir,
Previously I was working in XYZ Ltd, but later on I switched to other company . Now this company gets closed.
How can I withdraw my PF amount ?
Regards
Astro Advice – Indastro
———————————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
If the company is closed, it doesn’t mean that the employees have to lose the money what they deserve for. Pls try to catch the head of that company and let him know the situation. You can request them to process the withdrawal forms.
They have to put signature in the withdrawal forms.
If you are still not able to get the signature from your previous employer, you can get it from the following officials and submit it in the P.F. office:
1. Manager of a bank.
2. By any gazetted officer.
3. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees’ Provident Fund Organization).
4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.
Regards
Cogzidel Team
Hi,
I want to know what is the taxability impact of withdrawal of PF?
Regards
Yogesh Chavan
———————————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
The withdrawals are exempt from tax if the concerned employee has rendered continuous service of more than 5 years. Otherwise, it would be taxable at the applicable slab rates.
Regards
Cogzidel Team
Hi,
I resigned in Nov 2008 and Joined – Mumbai other company which is the competitor of the previous company. I had resigned in Jun 2008 and even got the duty relieving letter from the previous employer but due to request of the employer I stayed back till Nov 2008.
Now the employer’s is not signing the PF settlement form.
I have the PF number and establishment details with me.
I don’t have the annual statement of the PF as we never received since I joined in Dec 2004.
Please let me know how can I withdraw my PF without the signature of the employer and where is the correct department to approach in Mumbai. The company is located in Andheri E. So where should I apply Kandivali or Bandra ?
Regards
Amar Kasurde
———————————
Answered by Cogzidel:
Thanks for writing to Cogzidel.
It is the duty of the employer under the Act & Scheme to help Employees’ Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receiving the forms & hand over it to the member when he leaves the service. When a member finds difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office
i. Manager of a bank.
ii. By any gazetted officer.
iii. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees’ Provident Fund Organization).
iv. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.
Regards
Cogzidel Team
Dear Sir,
It’s an excellent blog with lot of particular information on EPF and related topics. I wish you continue this good work with same vigor.
I have been working with a company in Pune, Maharashtra for the past 1year and 2 months. For some personal reasons, I have resigned my job. However, I got a job in Karnataka in the one month notice period. My question to you is:
1. Should i withdraw or transfer my PF amount? What is the procedure for the same?
2. If i apply for transfer will it be too late as the transfer is from one state to another?
3. If the answer for 2 is NO, then how much approximate time it takes for the transfer?
Please help me in this regard clearly with no further complexities as i am getting mixed responses from my friends.
Thanks & Regards
Kiran Shanbhag
———————————
Answered by Cogzidel:
1. It is always advisable to transfer the P.F. money. Normally if you withdraw PF money within 5 years of service, the amount you withdraw is taxable.
2. If you transfer your P.F. money, your P.F. service will also accumulate, which will in turn helps you to avail loan from P.F. department. For getting a loan a member needs minimum 5 years of service.
3. For transferring P.F. from one account to other account, it will take about 40 Days. Once you submit the forms, keep regular check with the P.F department regarding the status of the form.
Regards
Cogzidel Team
Hi,
My company is deducting 12% PF from my salary and I know that equal contribution is made by the company too. For example, if my contribution is Rs.50,000, company’s contribution will also be Rs.50,000 right? In case of leaving service, my PF amount of Rs.1,00,000 will be paid to me right? Please clarify.
Ram
———————————
Answered by Cogzidel:
Employer’s contribution to PF is 12% of statutory basic pay (which is Rs. 6,500). Hence, the actual liability of an employer is only Rs. 780 (being 12% of Rs. 6,500). But, many companies follow the practice of contributing 12% of actual basic pay (which might be more than Rs. 780). It all depends on the policies framed by each employer.
In your case, you will have to check with your employer about the policy they adopt.
Regards
Cogzidel Team
i lost my pf number or it got misplaced when we were shifting the house . so how do i can get my pf number ?
Reply from Cogzidel:
a) Some employers have the practice of mentioning the PF number on the payslip. If you are able to find your payslip, pls check whether it is mentioned.
b) If not, you will have to contact your employer.
Regards
Cogzidel Team