Is Withdrawing PF Necessary When Switching to Self-Employment After 3 Years?

Hello,

Is it compulsory to withdraw PF upon leaving the job? An employee has worked for three years in an MNC. Now, the employee is in self-employment. The employee doesn't want to withdraw the PF as they may lose the employer's contribution if withdrawn earlier than five years.

Kindly advise.

Warm regards

If he has been a member of the Employees' Provident Fund, he will not lose the employer's share if he has worked for at least 6 months. However, if he is not presently working, he can apply for withdrawal of the Provident Fund only and simultaneously apply for a scheme certificate in lieu of the withdrawal benefit of the Pension Fund to which 8.33% of the employer's contribution goes.

Regards,
Madhu.T.K

Dear Madhu,

Thank you for replying. What happens to the fund if it is left untouched for 5 years? Is there any provision that states the employee will lose out on the employer's contribution if a withdrawal is made before completion of five years?

Nothing will happen to your PF accumulations since the law of limitation will not apply to EPF balances. You will get the amount even after a very long period.

Regards,
Madhu.T.K