Understanding PF Account Transfer, Withdrawal, and Inactivity: Key Insights Discussed

Hi,

My current employer doesn't deduct PF, but I have a PF account with my earlier employer. I do not want to withdraw the accumulated PF from my previous PF account. How long can I keep this account in an inactive state? By inactive state, I mean neither do I wish to withdraw nor do I wish to transfer, unless I join an organization where they again start deducting my PF. Will any penalty be imposed, or is there any maximum time limit for which I can keep the account inactive?

Hi Anil,

Your account will remain active until you either withdraw the amount or transfer it to your new company's account.

Regards,
Harshad

Hi,

The PF accumulated amount will increase with interest as long as you keep it with EPFO.

Best regards,
SKD

First, why do you not want to get your amount? It's your money, dear.

Well, a PF Account means savings account facilities provided to an EMPLOYEE by the EMPLOYER under the State Govt EPF rule. The Employees' Provident Fund and Miscellaneous Provisions Act of 1952 applies to the whole of India except Jammu & Kashmir.

An employee is eligible for membership from the day they join the covered establishment, and the Employer is constrained to deduct a certain amount (If the employee's emoluments exceed Rs. 6,500/- per month, they have the option to join the Scheme(s) with the consent of the employer) from the salary/emoluments and put it into the Employee's EPF account.

The rate of contribution payable by a member/employee shall be at 12% of their emoluments.

After resigning or leaving the organization, the EMPLOYEE can withdraw their money/deducted amount (After 3 months of their last working day with the employer) anytime or can transfer it to the new employer. Otherwise, the EPF account will be closed automatically for an Employee. It means no further amount shall be submitted by the Employer into the employee's EPF account with effect from the very first day after resignation/leaving the organization by the EMPLOYEE.

An Employee cannot open an EPF account directly nor close it by themselves, and there is no penalty involved.

You do not need to do anything with this, and MONEY DOES MATTER FOR EVERYONE....

Thank you, Anil, for the information. However, does this mean we can withdraw our money anytime after leaving the employer? I left a company when I was in Chennai around 12 years ago. Can I now withdraw without the need for a seal and signature from that employer? I have the PF number, the salary slip, and details of my tenure. Our head office was in Bangalore, and I am currently in Delhi. Additionally, I have the organization code that I found online after reading this post.

Dear Mr. Anil,
very well explined,
but,
its 2 months after resignation of employment from the pevious employer v can withdraw the amount as u have mentioned 3 months. ie. after 2 months v can approach to epf office with related doc.
Plz clearify..
regards,
Ramnath

Hi Anil,

Please shed some light on what to do with the following case. One employee had worked twice in a company for two different tenures (2005-06 & 2008-09) with two different PF account numbers under the same company code. Now, he wants to transfer the accumulation of both periods to the account number with his new employer. Is it possible, and what should be the procedure?

Thanks and regards,
Mandira
mandira.basak@yahoo.com

Dear Mandira,

As the tenures are different, there will not be any problem. The only thing he should do is submit Form No. 13 with the details of the previous employer's address and PF account number. Since he has two account numbers, he has to submit them in two separate forms. For this, the current employer has to certify.

Thank you.

Hi,

Re: Mandira's query

Another simpler method used in cases of two numbers being allotted is that we write a letter to the PF authorities stating the matter and requesting continuance of the earlier account number and transfer of new account accumulations to the old account.

Re: Amresh Mishra's query

You can apply now even after a 12-year gap. However, it would be better if you get your employer to attest your form and submit it.

Secondly, in some regions, the department asks for the reason for not collecting money for such a long period. If asked, you may have to provide a clarification letter explaining why you did not withdraw/transfer the money that was lying in your account for so long. This is to cross-check the bona fides of the applicant.

Take care.

Regards

Dear All,

I have gone through the questions and their answers and I find that sometimes the Concern Expert does not delve deep into the matter. In the above case, he has considered two numbers in one organization. First of all, when a new joiner joins, we fill out Form No. 11, stating that he/she is not a member of P.F. If he is a member, he has withdrawn the money, and it is always signed by the employee and employer. How can you go beyond this? You can transfer only one account at a time. My suggestion is to transfer the amount with the maximum balance. Then, after a gap of 6 to 10 months, when the transferred amount reflects in your account, fill out another Form 13.

Regards,
SHISH UNIYAL
PAYROLL & LABOUR LAW CONSULTANT
09811681660

Dear Mr. MNdind,

I have gone through the questions and their answers, and I find that sometimes the Concerned Expert does not thoroughly review the matter. In the above case, he has considered two numbers within one organization. When a new joiner fills up Form No. 11, they state that they are not a member of the P.F. If they are a member, they have withdrawn the money, and it must always be signed by both the employee and the employer. How can we go beyond this? You can only transfer one account at a time. My suggestion is to transfer the amount with the maximum value. Then, after a gap of 6 to 10 months, when the transfer amount reflects in your account, fill up another Form 13.

Regards,
SHISH UNIYAL
PAYROLL & LABOUR LAW CONSULTANT
09811681660

Mr. Anil IITG,

Dear Anil,

Your P.F. dues are deposited with the P.F. It is your money, and you can keep it for as long as you wish. However, our advice is not to wait too long for withdrawal. I have handled many cases where the company had closed long ago, and we managed to secure the payment. It can be very challenging to retrieve the money from the P.F. office later on, especially if no one in the establishment you worked for remembers you or is available to sign your P.F. forms. It is advisable to have the P.F. forms attested by your former employer as the best way to ensure smooth processing.

If you withdraw the money after 12 or 20 years, sometimes it may become difficult for them to access the records, leading to delays in receiving your dues.

Best regards,

Shish Uniyal

Payroll & Labour Law Consultant

What is the normal duration of transferring a PF account from one employer to another employer when changing employment?

The process of transferring a PF account from one employer to another typically takes around 20-30 days. However, the exact duration can vary depending on the efficiency of the employers involved and the completeness of the documentation provided. It is important for employees to follow up with both the old and new employers to ensure a smooth and timely transfer of their PF account.

Hi,

I have worked in an autonomous body under the Ministry of Railways for only one year. Now, I have resigned. Can I withdraw my PF now? What's the procedure to withdraw it? Which forms are needed to withdraw the same?

Thanks in advance for your informative replies.

I know this is an old discussion thread. But the issues & questions related to PF are still valid :-) The postings in this thread still provide valuable views, inputs, and knowledge sharing by other forum members on such issues.

I have one more related question, and that is, if my PF account is not receiving contributions for years (say more than 3 years), how can I find out if the interest is actually being accrued in my PF account? I believe my previous employer will stop receiving the yearly statements from the EPFO for me for subsequent years after I leave that organization. Does EPFO offer any service for the members owning such PF accounts (maybe through the previous employer) to apply for a yearly statement? My PF account can be in such a state because I joined an organization that does not have a PF facility.

Hi All,

I was working with a firm for one year and then moved to a new company. I had a PF account in my first company but didn't have a PF account in my second company. Now I have joined a third company and want to have a PF account here. Is it possible to transfer the PF account of the first company to this third company even if there was a gap?

As I'm staying quite far from my first company's location, is there any possibility to withdraw or transfer this account? Looking forward to your valuable suggestions.

Our company opened my PF account in September 2014. However, when I checked with the PF office, they informed me that my PF form had not been submitted. So, my question is, was my PF account opened in the same month at the PF office? How many months has it been open for? Please help.
Jignesh