Important Update on Provident Funds: How Should Ex-Employees Handle Withdrawals or Transfers?

Dear HR friends, it has been informed by the PF authorities that there will be no interest for accumulated funds that have not been withdrawn or transferred for the last 3 years, starting from April 2011. Therefore, we can inform our ex-employees to either withdraw the accumulations or have them transferred to their present employer's account, based on good faith.

Yes, Sir, please do it. It will be a great community service. Please tell your employees to either get their old PF accounts closed or transferred to the present employer. Also, tell them that transferring would be better than closing, as they will benefit from the continuation of their past service, ultimately affecting their pension claim in the end.

We have not received any new rules regarding P.F as mentioned above, Mr. P. Ramchandran. If you have any more information, please share it with us.

If any employee does not withdraw their funds for the last 8 years, they will not receive interest for those 8 years.