Can I Get My Full PF Amount if I Transfer It to a New Job After Quitting Early?

Hi,

I quit my previous company before completing 6 months. I heard that if I withdraw PF, I won't get the Pension fund. Is it true? If I transfer the PF amount to a new account created in the new company, will I get the full amount?

Regards,
Bineesh

Hi Bineesh,

Yes, it's true that you won't get a pension. For a pension, an employee should have 6 months' contributions. Your PF account will be continued after transferring.

Understanding the PF Act and Pension Eligibility

The PF is a social security act introduced to support employees after retirement with a pension. If a person withdraws the amount before retirement, the whole purpose of the act is jeopardized. Therefore, to discourage early withdrawal, this clause is present in the PF act.

If you withdraw the PF amount once, you are not eligible for a pension; you are only eligible for the provident fund.

Thanks and Regards,
JK

Why You Shouldn't Withdraw Your PF Amount

It is always prudent to never withdraw or touch your PF amount. Always transfer the PF accumulation to your new employer. The reason being:

- **PF is meant for post-retirement purposes.** If the amount is withdrawn before superannuation, it loses its purpose. It serves as a good invisible investment in the long term.

- **The PF amount is completely tax-exempt.** There is no tax on the PF accumulated amount. Therefore, if you keep it alive and withdraw it when you turn 58, the entire amount is credited to you in full.

- **The interest on the PF contributions is a good 8.5% on a compounded basis and guaranteed,** whereas any other investment is taxable. In the long run, again, the accumulated interest is tax-free and serves as a good reliable source of investment.

To answer your question, you can, however, withdraw, but if you have not completed 6 months, then you will lose the EPS amount.

Regards

But my doubt is not clear...

If I transfer money from the old PF account to the new PF account, will I get all the money (Provident Fund and Pension Fund)?

Yes, if you transfer your amount from one account to another account, you will receive the whole amount. Form No. 13 will need to be filled out for the transfer of accounts.

Thank you,
Parvez

The pension eligibility is only after attaining 58 years. 8.33% of employer's contribution, subject to a maximum of Rs. 541/- at present, goes to the EPS'95 fund.

You have a long career ahead. When you join a new company, the employer will continue with the same.

Tanuja

Dear BN,

Submit Form 10C and get a scheme certificate from PF authorities when you apply for PF transfer through Form 13. After receiving the scheme certificate, submit it to your employer for onward submission to PF authorities. (Please take a copy of the scheme certificate before submitting it to your employer). This will ensure that your old Pension Fund account gets merged with the new one.

Regards,
Shankar

Hi, I quit my previous company after completing 3 years. Then, I joined another company and completed 2 years. After that, I switched to my present company and completed 1 year, creating a new PF account. However, I did not transfer both the previous PF accounts to the new PF account created in the new company. Should I transfer both my previous accounts? If I transfer the PF amount to the new account created in the new company, will I receive the full amount?

Regards, Subhas

Hi,

I need to know the total details about PF Forms and all this. Guys, if you have any proper update on it, kindly pass the information to me ASAP.

With Warm Regards, Amit Banerjee

Hello friends, I want to know if it is possible for any employee to withdraw some amount from the PF account and how much we can withdraw and for what purpose it will be applicable.

Hi HRs,

One of our employees needs to withdraw the PF amount as he is in need of it. So, which option is better - to withdraw or to apply for a loan on PF? If it's a loan on PF, what is the process for it?

Thanks and regards,
Syed