Hi,
I was informed by my previous employer that if an employee's service is less than 6 months, then after joining a new company, they can't withdraw their PF. The only option is to transfer it. Additionally, the tenure of services is counted from 1 month after the actual date of joining. I never knew about such rules in PF. Could you please shed some light on this issue?
From India, Khopoli
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5I was informed by my previous employer that if an employee's service is less than 6 months, then after joining a new company, they can't withdraw their PF. The only option is to transfer it. Additionally, the tenure of services is counted from 1 month after the actual date of joining. I never knew about such rules in PF. Could you please shed some light on this issue?
From India, Khopoli
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Hi Nidhi,
As of now, there are no rules restricting an employee from withdrawing, etc. An employee is free to ask for withdrawal and transfer as per his choice. It is mandatory that an employee on muster rolls should be covered under the PF Act from day one, i.e., the day of joining the organization. There are no clauses stating that an employee should complete one month, etc. However, ensure you do not default in complying with PF rules and regulations.
All the best,
S. Amarnath
From India, Bangalore
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As of now, there are no rules restricting an employee from withdrawing, etc. An employee is free to ask for withdrawal and transfer as per his choice. It is mandatory that an employee on muster rolls should be covered under the PF Act from day one, i.e., the day of joining the organization. There are no clauses stating that an employee should complete one month, etc. However, ensure you do not default in complying with PF rules and regulations.
All the best,
S. Amarnath
From India, Bangalore
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Hi,
If you are governed under EPF, you can withdraw PF accumulation (in case of severance) under two circumstances:
1. You have to give a declaration in the withdrawal form that you are not employed anywhere else for the last two months.
2. You are employed at a place to which the EPF Act does not apply.
There are no other conditions. As per the law, the employer is bound to deduct PF contributions for each and every employee from wages and deposit the same with the EPF authorities along with equal contributions from their side.
Sunil
From India, Mumbai
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If you are governed under EPF, you can withdraw PF accumulation (in case of severance) under two circumstances:
1. You have to give a declaration in the withdrawal form that you are not employed anywhere else for the last two months.
2. You are employed at a place to which the EPF Act does not apply.
There are no other conditions. As per the law, the employer is bound to deduct PF contributions for each and every employee from wages and deposit the same with the EPF authorities along with equal contributions from their side.
Sunil
From India, Mumbai
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Hi,
In the case of members who have a membership period of less than six months and wish to withdraw their contributions, FPS Contribution will not be considered for settlement. Therefore, members who have served for less than six months are advised not to withdraw but to transfer their membership instead.
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In the case of members who have a membership period of less than six months and wish to withdraw their contributions, FPS Contribution will not be considered for settlement. Therefore, members who have served for less than six months are advised not to withdraw but to transfer their membership instead.
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Hi,
As one of you has quoted that in case of less than 6 months of service, FPS contribution is not considered for settlement, that is the doubt with me. Some are in favor and some are saying there is no such rule. And even if it is true, then is this the criteria that PF authorities start calculating 6 months of service after 1 month, as the contribution goes after 1 month of joining.
For example: I joined on 6-Mar-06 and left on 29-Sep-06. Then for my withdrawal, what tenure would be considered: 7 months or 6 months?
Thank you.
From India, Khopoli
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As one of you has quoted that in case of less than 6 months of service, FPS contribution is not considered for settlement, that is the doubt with me. Some are in favor and some are saying there is no such rule. And even if it is true, then is this the criteria that PF authorities start calculating 6 months of service after 1 month, as the contribution goes after 1 month of joining.
For example: I joined on 6-Mar-06 and left on 29-Sep-06. Then for my withdrawal, what tenure would be considered: 7 months or 6 months?
Thank you.
From India, Khopoli
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF WITHDRAWAL RULES.zip