Understanding PF Pension Breaks When Switching Jobs: What Should You Know?

Please guide for PF pension break period if an employee changes the organization and joins a new one.

Thank you.

I am also looking for information on PF payable if an employee leaves after working for 10 days. Is PF deductible or payable? Please clarify if an employee leaves without serving his notice and does not return to collect his salary, is PF payable to the department. This is urgent. Please let me know what the current practice is.

I think you should be clearer in your question. If an employee works for 10 days or any number of days, the full amount of PF, i.e., 12% + 13.61%, must be deposited in the PF office. If anyone leaves the job before 10 days, they will not be able to withdraw the full amount, i.e., 25.61%. However, they can claim 12% + 3.67%.

Sandeep

Hi Sandeep!

Nice clarification! I have one question. My organization showed me a total CTC of Rs. 10,000, and now after joining, I got to know that the amount of PF (employer's share) and LTA is being deducted from my salary only, making it about Rs. 8,000 in hand. Is it a legal and fair practice?

Thanks and Regards, Alicia

Sir,

I have a doubt regarding total years of service required for the PF. Is it necessary to have continuous service of 10 years, or are breaks acceptable? I would appreciate clarification on how breaks in service are counted towards PF eligibility.

Please clarify.

Hi, thanks for such clear information. One more thing I want to know, as you mentioned, if anyone leaves the job before 10 days, they will not be able to withdraw the full amount, i.e., 25.61%. But they can claim for 12% + 3.67% amount, so they will be eligible to withdraw 25.61%. According to my knowledge, the employer's contribution is also 12%; then, where does this extra 1.61% come from?

Regards,
Riya

Hi, Alicia...

Yes, it is fair. As per my knowledge, your Rs. 8000/- is what is generally called take-home salary, which you are getting in hand. Your total CTC is equal to Take-home salary + Deductions.