New to PF? Seeking Guidance on Updates, Withdrawals, and Claims as an HR Executive

Hello to all, I need guidelines relating to PF because I don't have any prior experience. I am working as an HR Executive over here. In our company, I don't have any senior who can clarify these issues.

Understanding PF Changes and Labor Department Updates

1) How will we get to know about changes in PF calculation or any updates in the labor department (minimum wage, remittance of labor welfare fund)?

PF Withdrawal Process

2) When can an employee withdraw their PF amount? After resignation, does the employee need to wait for 2 months from the date of leaving? Where do we need to submit those forms in the PF office, and can we use a soft copy for withdrawal?

PF Claims Process

3) When can an employee get back their claims from the PF office?

Waiting for your valuable replies.

Thanks & Regards,
Sheela

Please find the answers to your above questions:

1. PF Contribution Details

PF is a 12% contribution from both sides (employer & employee). In case there are changes (such as minimum wage or any other change), we need to get in touch with the local labor office. Most companies outsource to vendors who will coordinate for all statutory compliance.

2. PF Withdrawal Process

An employee can withdraw the amount after their resignation. Yes, they need to wait for 2 months from the date of leaving to apply for it. I am not sure if soft copies will be accepted.

3. PF Claims Processing Time

It takes 3 months from the time of applying.

I hope this clarifies things for you. Let me know if you need further assistance.

Dear Sheela,

Your Answers:

1) How to Stay Updated on Changes in PF Calculation and Labor Department Regulations

For the first year, you have to keep in touch with the respective department. From the second year, you will receive a letter from the Labour Welfare Board, Professional Tax (Corporation), and ESIC. You can view all the updates in your ESIC portal login. PF/ESI is a statutory calculation that does not change unless there is an amendment. Minimum wages can be collected from the LWB/Labour office.

2) PF Withdrawal Process After Resignation

After 2 months from the date of leaving, an employee can apply for the PF withdrawal form. You can use the soft copies downloaded from the EPFO site or the respective EPFO site.

3) Timeline for Receiving PF Claims

It depends on the state. In some states, you can get your money within 40 - 45 days; in others, it takes more than 3 months. Today, EPFO provides employees with the ability to track their claim status, and they can also know their balance in the PF account.

Thank you.

Regards,
[Name Removed For Privacy Reasons]

Thank you so much for your valuable response. Do the company need to submit the PF withdrawal form to the PF office, or does the employee only need to submit the form after 2 months of the date of leaving service to the PF office? Can you refer me to any website where I can get more information regarding changes in any law relating to the HR field? I want to learn new aspects in HR.

Thanks & Regards,
Sheela

Dear Sheela, this may help you. Wishes.

No, you can only submit one cheque in the PF challan; you can only fill in details for one cheque. Please visit the SBI bank where PF contributions are remitted in person and hand over the cheque to the concerned person. The amount on the cheque should match your contribution. Please explain this to them and do not use the drop box.

To prevent future issues, avoid issuing two cheques.

Thank you.

I would advise you to encourage employees for EPF transfer rather than withdrawal because this small contribution may act as significant security during tough times and old age. Please go through the benefits of EPF available to employees.

Application for Transfer of EPF Account (Form-13):

1. To be submitted by the member to the present employer for onward transmission to the Commissioner, EPF, by whom the transfer is to be effected.

2. In case the P.F. transfer is due from the P.F. Trust of an exempted establishment, the application should be sent directly by the employer to the P.F. Trust of the exempted establishment, with a copy to the RPFC concerned for details of the Family Pension Membership.

Please find the attached sheet for the calculation of EPF and the purpose for availing advance and withdrawal. For any updates and clarifications, please revert to us.

Regards

Dear seniors, I worked in the Raipur branch. Our HR department provided us with a payslip showing the PF amount deducted for three months. After three months, our HR department issued a total amount cheque. Initially, we were unaware that this cheque was related to our PF account, but we deposited it into our account. Later, we realized it was our PF contribution. The same process continued for my PF account in Hyderabad, where I lost three months of service. Upon leaving the organization, I received a service certificate for the entire year, including the PF breakup. Now, I am considering filing a complaint with the Raipur PF office and the Hyderabad PF office. Could you please provide advice on this matter?

Regards,
Sriram

I would advise you to encourage employees to transfer their EPF rather than withdraw it because this small contribution may act as significant security during difficult times and old age. Please review the benefits of EPF available to employees.

Application for Transfer of EPF Account (Form-13)

1. To be submitted by the member to the present employer for onward transmission to the Commissioner, EPF, by whom the transfer is to be effected.

2. In case the P.F. transfer is due from the P.F. Trust of an exempted establishment, the application should be sent directly by the employer to the P.F. Trust of the exempted establishment, with a copy to the RPFC concerned for details of the Family Pension Membership.

Please find the attached sheet for the calculation of EPF and the purpose for availing advance and withdrawal. For any updates and clarifications, please revert to us.

No, you can only submit one cheque. In the PF challan, you can only fill in details for one cheque. Alternatively, please visit the SBI bank where PF contributions are remitted in person and hand over the same to the concerned person. The amount on the two cheques should tally with your contribution. Please explain this to them. Do not use the drop box.

Thank you for the reply. I will not submit any letter of resignation, nor have I signed any settlement papers. After three months, they gave me a cheque, and after six months, they issued a Loss of Separation/Termination (LOS) letter. In that letter, I request that you please provide the amount of dues owed to me. Additionally, they provided me with a service certificate for my 16 years of work. One important detail is that they were deducting 1800 monthly for PF, but suddenly reduced it to 600 without explanation. Even the PF staff is questioning this abrupt change in payment amount without any satisfactory response from the company to date.

I received the LOS/Termination orders at 3:00 pm, with a relieving time of 6:00 pm, which has left me very upset. I am currently fighting this decision and planning to lodge a complaint with the PF commissioner. Please provide your advice on this matter.

Thank you.

Your doubt can be cleared in the same thread. Look for the "Clarification regarding PF" message by loginmiracle. You'll be able to understand about PF. If not found, I'll email it to your ID.

Regards,
Deepa

"Keep learning"

From what you've stated, I'm sure something fishy is going on there. After 16 years of service, it is foolish to go for final settlement. Instead, you should have opted for the transfer of your balance to the new employer with continuity, by which your PF Pension should have been substantial. Without an application in the prescribed Form, your previous employer cannot process your final settlement.

Questions to Consider

1. Do you have all your previous pay slips with you, where all particulars of salary, deductions including PF deductions are mentioned as proof of the amount recovered from the salary towards PF? After verification, you will know if there is any difference (plus interest can be approximately worked out), and you can arrive at a conclusion. Alternatively, your previous employer, as per the law, should have supplied statements of Accounts of your PF account every year to all employees, showing Opening balance, your monthly subs, interest, advance drawn if any, and closing balance. If these statements are maintained by your employer and they remitted your PF collections to the PF Commissioner's Office, ask for proof of remittance. If not, you can see your PF account at the PF Commissioner's office. Try to gather such information.

2. You are now re-employed where you are covered under PF, right? Have you given them the transfer form and your PF Account & Pension Fund Account Numbers? If not, do it now and ask them to process it.

Let us try to salvage whatever is possible.

Regards,
Kumar S.

Dear Sandeep,

Here are a few attachments that may need to be noted for information and action if required. Also, please find the link: C:Documents and SettingsAdminMy Docu...Guidelines.htm.

With regards,
Kumar S.

Pension Eligibility After Resignation

I have a doubt about PF. A person who has completed ten years of service is eligible for a pension, but he is only 49 years old. He has resigned from his job. My question is, will he get a monthly pension, or will he receive the pension amount only after he attains the age of 58? Please explain why this happens.

Regards,
Pragadees