Employee Resigned After 4 Months: Can He Claim the Pension Fund Contribution?

Hi,

One of our employees worked for only 4 months and resigned from the job. He submitted withdrawal forms Form 19 and Form 10C, which were forwarded to the PF office. Now, the PF office has returned the Form 10C, stating that he has not rendered the eligible service of 6 months, so he is not eligible for the withdrawal benefit. Will he not get back the 8.33% of the employer contribution that goes to the Pension fund account?

Please suggest.

Regards,
erv

No. The PF department has acted as per their standard procedure. The amount is non-refundable.

- Hiten

Mr. Erv, one more thing I also need to tell you is that if any employee worked less than 6 months, then in that case, it's better to transfer the funds to a new PF account instead of withdrawing. This is because in a transfer, the full amount is transferred to the PF account (8.33% + 3.67%)...Ashok

Hi,

As per PF rules, one has to render a minimum of 6 months of service and make contributions to be eligible for a refund of EPS contributions that have been remitted to the PF authorities.

Hi,

An employee who worked in the company for less than 6 months is entitled to receive only their contribution, which is 12%.

It is not that the amount is totally lost. Yes, he will not get the refund of the contribution because the period of service is less than six months. But as pointed out by 'shfeeul.hr' he can apply for a scheme certificate. It will facilitate counting of this contribution also for the further pension contribution that he may be making in his future appointments. In the end, he will get the benefit of a pension.