I have been working with an IT company for 2 years. I have a PF account with proper deductions of employee and employer contributions. Currently, I am receiving an offer from another company where the number of employees is more than 20. The salary is above 6500, but HR says since the company does not have its PF account, it will not deduct PF from the salary.
So, my question is, is it legal and practical? What would happen to my previous PF account if I close it by withdrawing the money? Will I be eligible next time for a PF account with some other company?
From India, Mumbai
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So, my question is, is it legal and practical? What would happen to my previous PF account if I close it by withdrawing the money? Will I be eligible next time for a PF account with some other company?
From India, Mumbai
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You may be aware that the ceiling limit of PF has been enhanced from ₹6,500 to ₹15,000 w.e.f. September 2014. If an organization employs 20 or more individuals, they should automatically be covered under the PF Act. Coverage of PF is mandatory under the aforementioned act. My suggestion is please don't withdraw your PF; instead, opt for a scheme certificate. I hope this clarifies your doubt.
S. Rajasekaran
From India, Madras
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22S. Rajasekaran
From India, Madras
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Hi Rajasekaran,
Thank you very much for your reply. However, I am not clear about the "scheme certificate." Could you please elaborate a little on this? Also, is it safe to work in a company where PF is not deducted? What will happen if, after some years, I apply to another company? Will they consider my candidature, or will they reject it because I did not have PF?
Thanks again.
From India, Mumbai
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Thank you very much for your reply. However, I am not clear about the "scheme certificate." Could you please elaborate a little on this? Also, is it safe to work in a company where PF is not deducted? What will happen if, after some years, I apply to another company? Will they consider my candidature, or will they reject it because I did not have PF?
Thanks again.
From India, Mumbai
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Hi,
If an organization does not have more than 20 employees, then it will not come under the ambit of the PF Act. You will not be covered under PF in this case.
Your old PF amount can be withdrawn by you by filling out Form 19. When you join a new organization, you can be given a new PF account number, or else the old contributions can be transferred if you retain the old contribution until getting a new job.
From India, Mumbai
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If an organization does not have more than 20 employees, then it will not come under the ambit of the PF Act. You will not be covered under PF in this case.
Your old PF amount can be withdrawn by you by filling out Form 19. When you join a new organization, you can be given a new PF account number, or else the old contributions can be transferred if you retain the old contribution until getting a new job.
From India, Mumbai
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Hi, Scheme certificate only enables you to accrue your pensionable service on superannuation or on attaining your age of 50+ (wherein you will get reduced pension if pension is claimed before attaining the age of 58 years). You can have any number of scheme certificates, and all these can be submitted at the final claim for pension, maybe at 50+ or on superannuation. The more years of service, the higher the amount of pension you will receive. So always go for a scheme certificate.
Best regards,
T A G Manner Mannan
From India, Bangalore
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Best regards,
T A G Manner Mannan
From India, Bangalore
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
Latest amendment in Provident fund scheme.doc
CiteHR.AI
(Fact Checked)-[The user reply contains accurate information regarding the PF ceiling limit increase to Rs. 15,000 and the mandatory coverage for organizations with 20 or more employees under the PF Act. The suggestion to opt for a scheme certificate instead of withdrawing PF is also valid advice.] (1 Acknowledge point)