How to Handle Employee Requests for PF Claims Without Resignation in Bangalore?

Dear Seniors, I recently joined a manufacturing industry in Bangalore. In this company, most of the employees have completed more than 9 years of service. Many employees are asking for their PF amount, indicating their desire to claim the PF amount while still working at the company.

I have provided clear information to all employees that "As per the Provident Fund Act, claiming PF without resigning from the job is not possible." However, they do not agree with the information I have provided.

Please help me resolve this issue and provide supporting documents.

Best Regards,
Satish

Your colleagues are asking about the PF amount, which means they want to know the balance in their accounts. To find out, please instruct them to log on to EPFO (Govt. of India) and click on "Know Your EPF Balance."

PF Withdrawal Conditions

PF withdrawal claims through Form No. 19 are permissible only in cases where the employee has resigned, been terminated, or in the case of a death claim.

I hope you have received sufficient information.

Regards,
SDP

Dear Sir, Thank you for your reply. However, our company employees are interested in knowing the PF amount (employee and employer contributions) while continuing to work in the same company, not when leaving the job and requiring the amount. Please advise on this matter. Regards, Satish

Understanding PF Withdrawal While in Service

Your employees might be asking to withdraw their PF amount even though they are continuing their services in your organization. In this case, there are two possible scenarios:

1. Withdrawal from the Fund for the purchase of a house/flat or for the construction of a house, including the acquisition of a suitable site for the purpose.

(a) For purchasing a house/flat, including a flat in a building owned jointly with others (outright or on a hire-purchase basis), or for constructing a house, including the acquisition of a suitable site for the purpose from the Central Government, the State Government, a cooperative society, an institution, a trust, a local body, or a Housing Finance Corporation (hereinafter referred to as the agency/agencies); or

(b) For purchasing a site for the purpose of construction of a house or a ready-built house/flat from any individual, or for purchasing a house/flat on an ownership basis from a promoter governed by the provisions of any Flats or Apartments Ownership Act or by any other analogous or similar law of the Central Government or the State Government as may be in force in any State or area for the time being. The promoter intends to construct or constructs a house or block of flats, and the member is required to pay the said promoter in advance for financing the construction of the house/flat.

(c) For their children's marriage purpose, they can also withdraw their funds with proper documentation.

Now, you can explain the same information to your employees. I hope this will help you solve your problem.

Regards,
Raju

Dear Avanikay, Thank you for your reply. However, our company employees wish to receive the PF amount (both employee and employer contributions) while continuing to work in the same company, without the need to leave the job to access the funds. Please advise on this matter.

Regards, Satish

Advance Against PF Accumulations

Dear Satish, Your company employees can request an advance against their PF accumulations by filling out Form-31, given that they have completed 7 years of PF Membership with continuous service.

Regards, Vijay Dere

Dear HR, instead of giving specific figures for the Employer's and Employee's contributions, it would be better if you log on to EPFO to check your balance. There, you will get an updated balance of your individual account.

Regards,
SDP

PF Number Allocation

The PF number is allotted by the employer, and he is responsible for informing the employees. It can be included in the payslip. If the employer is not cooperating, employees can obtain it from the EPFO.

Regards,
Varghese Mathew

a) PF accumulated cannot be withdrawn while working in the organization. It is only possible when the employee becomes an ex-employee.

b) PF advance can be taken through Form 31 in the following three cases:

1. PF against medical grounds (applicable only for employees who are out of ESIC) - PF authority shall give a maximum of INR 39,000 (6500 x 6).

2. Against Employee's/Dependent's marriage (blood relation) (Applicable for employees who are out of ESIC & in ESIC) - PF authority can give up to 50% of the employee's PF contribution.

3. Against the purchase of a new house or renovation of a house (the house should be owned by the employee) - (Applicable for employees who are out of ESIC & in ESIC) - PF authority shall give up to 90% of the employee + employer PF contribution.

Regards,
Vinod

PF Withdrawal and Membership Continuation

PF withdrawal is not permissible with the continuation of PF membership as per the EPF & MP Act. A member is required to sign a Non-Employment Declaration on Form No. 19 while withdrawing PF accumulation. Only advances, as mentioned by Mr. Vinod, are permissible.

Regards,
SDP

I do not know whether all or some of the employees are asking for PF withdrawal or how educated they are. It is possible that now they have an HR person and they are just trying to find out the possibility. Others have given you the rules and possibilities.

Handling PF Withdrawal Requests as an HR Professional

What is left is for you to handle this like a proper HR person—clearly communicate the provisions, understand the problem, try to work out a solution within the confines of the law, and prevent it from becoming an issue or fermenting discontent.

One of the requirements of the law is to display an abstract of the law so people know what, in summary, are the rights and duties. Putting that up in a language that the workers understand will help.

Another thing is you can show some of the workers what the PF website says. It will have a local language version which you can show them. Perhaps help some of them to access their account and see the balance and what options it shows them.

Perhaps, if the audience is large enough, get a trainer or expert to give a training session on PF. The local PF officers may be willing to come and talk. I know of a few cases where they have agreed to come and address the workers.

It's like change management, really. Think your way through.

Advance/Withdrawals for Employees

Prepare the below details in a tabular format to hand over to employees who need to withdraw their amount.

Advance/Withdrawals may be availed for the following purposes:

• Marriage/Education
- **Purpose:** For the marriage/education of Self & Family
- **Eligibility:** Should complete at least 7 years of service.
- **Max Amount:** 50% of Employee's Share
- **Document:** Apply in Form 31 through the Employer

• Treatment
- **Purpose:** Treatment of Self, Family (Dependents)
- **Eligibility:** No minimum service required
- **Max Amount:** 6 times of Wages or Full of Employee's Share
- **Documents:** Apply in Form 31 through the Employer

• Purchase or Construction of Dwelling House
- **Purpose:** Purchase or Construction of House/Flat
- **Eligibility:** Should complete 5 years only in one service.
- **Max Amount:** 36 times of Wages.
- **Documents:** Apply in Form 31 through Employer

• Repayment of Housing Loan
- **Purpose:** Payment of House Loan
- **Eligibility:** Should complete 10 years only in one service.
- **Max Amount:** 36 times of Wages
- **Documents:** Apply in Form 31 through the Employer

• Purchase of Plot
- **Purpose:** Purchase of Site/Plot
- **Eligibility:** Should complete 5 years only in one service
- **Max Amount:** 24 times of Wages
- **Documents:** Apply in Form 31 through the Employer

• Addition/Alteration of House
- **Purpose:** Repair of house
- **Eligibility:** Should complete 5 years only in one service / Construction of House.
- **Max Amount:** 24 times of Wages
- **Documents:** Apply in Form 31 through the Employer

• Lockout
- **Purpose:** Lockout or Closure of the Establishment
- **Eligibility:** Should be closed for 15 days / No wages for 2 months.
- **Max Amount:** Total of wages multiplied by number of months closed
- **Documents:** Apply in Form 31 through the Employer

• Withdrawal Prior to Retirement
- **Purpose:** Withdrawal prior to Retirement
- **Eligibility:** No minimum service, at least 54 years of age / 1 year before retirement.
- **Max Amount:** 90% of total of both shares
- **Documents:** Certificate from the Employer showing the date of retirement / Apply in Form 31

• Other Advances
- **Purpose:** Advance in Abnormal Conditions
- **Eligibility:** Certificate of damage from appropriate authority
- **Max Amount:** Rs. 5000/- or 50% of member's own share of contribution.
- **Documents:** Certificate from Appropriate authority / Form 31.

This may help you.

Regards,
K. SAIKISHORE
SENIOR EXECUTIVE - HR
HYDERABAD
[Phone Number Removed For Privacy Reasons]