Understanding PF Withdrawal Rules and Pension Fund Eligibility: Insights on Form 10C

Hi,

One of my friends is leaving her organization after working just 2 months. I want to know if she will be eligible to withdraw the amount from the Pension Fund. If yes, then when should she fill out Form 10C? Will she receive the full amount from her account in the pension fund (i.e., 8.33% of basic contributed by the employer)?

Please reply.

Regards,
Team HR

Hi,

She will not be eligible for PF as the minimum duration of tenure should be 3 months.

Regards,
Poonam

Hi Poonam,

You mean to say the PF amount deducted from her salary for 2 months will go to waste? Suppose if someone's basic is around ₹25,000/-, then 12% i.e., ₹3,000 + ₹3,000 = ₹6,000/- from the employer will be wasted and can't be withdrawn? Are you sure? Have you checked it with the PF department, or are you simply saying? Kindly, someone reply confidently regarding Form 10C as well.

Regards,
Team HR

In order to get the withdrawal benefit of the Pension Fund contribution, the employee should have worked and contributed for at least six months. This is because for Pension calculations, any period over six months is taken as one year, and less than six months are ignored.

When that benefit is available to the employees, why should two months' contribution be taken very seriously? This applies to the Pension Fund contribution of 8.33% of Rs 6500 only. The amount contributed by the employee at 12% and the employer's contribution to the Provident Fund at 3.67% are available to the employee for withdrawal.

Regards,
Madhu.T.K

Dear Madhu Sir,

Thanks. I mean, the PF amount can be withdrawn even if she works for 2-3 months, right? Because Ms. Poonam has replied wrongly that PF amount can't be withdrawn. To withdraw the PENSION FUND AMOUNT, it requires at least 6 months of work.

Regards,
Team HR

She is not eligible for withdrawal as she has not completed six months of contributions, as per the PF rules.