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 their notice and does not return to collect their 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%.

Regards,
Sandeep

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, 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.

Hi, thanks for such clear information. One thing more 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%. However, they can claim 12% + 3.67%, making them 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?

Employee's Share: 12% [on basic + d.a.]

Employer's Share: 12% [on basic + d.a.]; the bifurcation in this 12% is 8.33% or a maximum of Rs.541.00 in the Pension A/c., with the balance amount in the Employer's PF A/c.

• Administration charges: 1.10% [calculated on PF salary]
• EDLI charges: 0.50% [calculated on Pension salary]
• EDLI Administration charges: 0.01% [calculated on Pension salary]

Account Details:
A/c. No. I - PF Account [including Employee's PF & Employer's PF]
A/c No. II - Administration charges [calculated on PF salary]
A/c No. X - Pension amount [i.e., 8.33% or a maximum of Rs.541.00]
A/c No. XXI - EDLI Charges [EMPLOYEE DEPOSIT LINK INSURANCE]
A/c No. XXII - EDLI Administration charges

Regards,
Deepak