Understanding PF Withdrawal vs. Transfer: How Does Employer Contribution Affect Your Pension?

Hello All,

I have been working for the last 8 years and have changed quite a few jobs. I have always withdrawn my PF from the organizations I have left. However, I have a query. Recently, I quit my job after working there for over 3 years. I have a couple of specific questions:

1) How is the employer's contribution distributed between the PF account and the Pension account (the percentage between the two)?
2) If I fill up the withdrawal form, will I get the entire pension amount that is in my account?
3) Which option works better - withdrawal or transfer of PF?

Hope to receive a response soon.

Regards,
Nikunj Devani

Greetings,

Regarding employer contributions, it is the same amount that is deducted from your wages. However, from the employer's side, 8.33% is deposited into the pension fund, and the remaining 3.67% is deposited into the PF account.

Yes, you are entitled to receive the entire pension amount.

It totally depends on you; if you need the money, then withdraw it. Otherwise, transfer it because you will earn interest on it.

Regards,
Surender

Dear Nikunj Devani,

If you want a monthly pension, you may apply for a transfer/scheme certificate for previous services, which can be added to later services. If you want a one-time withdrawal, it would be better to apply immediately because PF authorities are not providing interest on withdrawal benefits.

Abbas.P.S