Is Employer's PF Contribution Part of CTC? Plus, Can I Withdraw PF Without Job Change?

Hi,

As PF contribution of the employee is deducted from their CTC, is the employer's PF contribution also included in the CTC? Could you please clarify this?

I have been working with the same company for over two years. Can I withdraw my PF amount without changing my job? Please provide clarification on this matter.

Thanks in advance.

Yes, while calculating CTC as a whole, employer PF contribution should also be included because it is a cost to the company. From my experience, most companies include this in the CTC. I would like to know other members' comments.

M. Krishnakumar

Employer's contribution towards PF is a part of CTC. If any employee wants to withdraw the money accumulated in the PF account, he can do that, but there is a blocking period for that. I am not sure about the blocking period.

Yes, it is part of CTC. You can withdraw this amount upon submission of resignation; however, you need to wait at least three months for it to be credited to your SB account.

Employees' share of PF is a deduction from their own salary. It costs nothing to the company. Whereas the employer's share is a cost to the company.

PF cannot be withdrawn while in service. However, there are provisions for taking a non-refundable advance from the PF account for which a minimum service is required. For example, for marriage of self or a close dependent, you should have at least 7 years of service, and for purchasing/constructing a house, you should have at least 5 years of service. In some other cases, such as medical treatment, reduction in wages due to power cut (idle time enforced due to power cut), non-payment of salary for at least two months, etc., an advance is allowed from the PF account.

Regards, Madhu.T.K

PF is a part of CTC and is contributed by both the employee and the employer. Eligibility for withdrawing PF is after 2 months of his/her resignation with the company, and after submission, it takes a minimum of 40 days for processing. An employee in service can't withdraw the PF amount. Form 10 & 19 are for withdrawing PF.

Regards,
Suji.