How Long Do You Need to Contribute Before Withdrawing from Provident and Pension Funds?

Dear All,

Let me find the answer from you. My question is how many months of contribution are required to withdraw from the Provident Fund and Pension Fund accounts?

Regards,
Skantha

Dear Skanth,

Provident fund is deducted at a rate of 12% from the employee's salary, which is allocated to the PF account. Additionally, the employer contributes 12%, out of which 8.33% is credited to the PF account, and the remaining 3.67% is directed towards the pension fund.

Employees have the option to withdraw their PF share regardless of their length of service. However, to claim the pension share, a minimum contribution period of 6 months is required.

Thank you,
JS Malik

Sir,

First of all, let me thank you for sharing your knowledge with us. I have one clarification:

1. Is the 12% employer contribution divided as 8.33% to the pension account and 3.67% to the provident fund? Please correct me if I am wrong.

2. Are the contributions made by the employer to the EDLI scheme available for withdrawal by the surviving member, or are they available to the nominee of the member after his death?

Regards,
skantha

Hi,

As per PF Act, employee contribution of 12% is fully credited into PF account, i.e., account number 1. Employer contribution of 12% will be divided into 2 parts:
1. 8.33% will be deposited into the pension account, i.e., account number 10, up to a maximum of 541. The balance, if any, will be deposited into the PF account only.
2. 3.67% will be deposited into the PF account, i.e., account number 1.

Hope this is clear to you.

Thanks,
Skantha

Hi all,

Thank you for clarifying the doubts. I have just one more query, please oblige.

My doubt is, when we claim our PF by filling the forms 19 & 10C, does that cover both the contributions of 8.33% (Pension Account) and 3.67% (PF), and will we receive the full amount? Right?

Thanks and Regards,
Gyanu

Hi Sukantha,

The amount comes in two separate payments.

Thanks & Regards,
Drupad Joshi
Teamlease Services – India's largest staffing company
Know us: http://teamlease.blogspot.com
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Hi,

Yes, you can claim both. However, you need to have 7 months of contributions to withdraw funds from the pension fund. Nonetheless, you can claim the PF amount at any time.

Regards,
skantha

Dear All,

Could anybody provide the circular stating that if services are for less than six months, the pension fund amount cannot be withdrawn but transferred? Is there any documentation to support this view? If yes, please help provide it.

Please also advise if the following is possible:
On leaving service for less than six months, can an employee:
- Fill in Form 19 for PF withdrawal
- Submit Form 10c

Regards,
Puran Dangwal

Hi all,

I meant, can a person with less than six months of service fill in both forms after 60 days of leaving the service:
- Form 19 for PF withdrawal, and
- Form 10 C for Pension Fund transfer.

Regards,
Puran Dangwal