Gratuity and PF Settlement Worries: When Will I Get My Payments After Resigning?

I resigned from services on 28th May 2013, and 1st June 2013 was my last working day. I joined this company on 19th May 2003. I have received my full and final settlement, which included one day's salary and unpaid LTA. I also received an experience certificate cum relieving letter.

Gratuity Payment Inquiry

Please advise when gratuity is payable. Is it paid along with PF, for which I have opted for withdrawal since I am jobless?

PF Settlement Concerns

Also, since I have sold the house and moved to another city, am I risking missing the PF cheque, or is it settled through direct credit to the account given?

Thanks, all.

Please check your full and final settlement details/statement for the inclusion of the gratuity amount. The eligibility for gratuity is the completion of 5 years of service. Gratuity is payable to the employee upon separation at the time of relieving from services. Since you have completed 10 years of service, you are eligible for gratuity, and the company normally pays gratuity along with the full and final settlement. PF is different from gratuity.

You have not stated in your query whether you opted for PF payment by the concerned PF authorities through Cheque/DD or through direct credit to your bank account. If you had opted for direct credit to your bank account in the PF withdrawal form (Form 19), then your accrued PF amount will be credited to your bank account by PF authorities within 30 to 45 days, provided all details are correct.

Now, you can check the status of your PF online, and you can also download your PF passbook. Check with local PF authorities under whose jurisdiction your last worked office falls to know the status of your PF disbursement.

With regards,

Madhusudan

Dear Dheerpat,

Your company was liable to settle your dues in full and final, other than Gratuity and Bonus, within 2 days. That has been settled.

Gratuity Settlement

Your company is liable to settle your Gratuity within 30 days. You are advised to inquire with your employer about it and submit your claim application in Form I as soon as possible.

PF Settlement Process

Regarding your PF settlement, you need to submit Form 19 and 10c to your employer upon completion of 2 months from your date of leaving. It is common practice for all RPFCs to settle the claims by paying the dues directly into the bank accounts of members. For this purpose, you need to submit a cancelled cheque, which is compulsory.

EPFO has announced online settlement starting from July 1, 2013. However, the department has not yet provided the procedure for this.

Thank you.

Thank you all for your responses. As per the process, the "PF declaration form" and "Form 10C" need to be filled (one copy each along with one cancelled cheque). There is no mention of Form 19. Is it different? Actually, I was working with HDFC Bank, whose PF is a trust. The PF declaration form is where you opt for either withdrawal or transfer. Should I now download and fill Form 19? Since Centurion Bank was merged with HDFC, for them, "Form 19 and Form 10C need to be filled (2 copies along with 2 cancelled cheques)." I am so confused about the forms.

Gratuity and Full and Final Settlement

As regards gratuity not being a part of FNF, as per the process, "the full and final settlement will comprise of unpaid salary till the last working date and unclaimed LTA." There is no mention of gratuity here.

Regards,
Dheerpat

One more thing, as per my PF slip, my PF account number is D0281X, which is the employee code followed by X. However, as per the EPF website, the account number should be a maximum of 7 digits numerical. When I input the same to know the balance, it shows an error asking to enter only numeric values. Where can I get my account number?

Gratuity Payment Process

For the payment of gratuity after the cessation of service, you must apply for it in the prescribed format. Please inquire with your administration/HR branch to see if they are waiting for your application for the payment of gratuity.

Transfer of Provident Fund (PF)

And one more thing, why did you not prefer the transfer of your PF to the new employer in case you have joined another employer?

Thanks & regards,

An employee is not entitled to settle their PF account but is required to transfer it to new employment compulsorily if they join new employment within 2 months of leaving. If the account is settled, they are likely to be caught in IT scrutiny. The EPFO can prosecute them and compel them to pay back the amount received with interest.

"Employees are not entitled to settle their PF account but must transfer it to new employment compulsorily if they join new employment within 2 months of leaving. If the account is settled, they are likely to be caught in an IT rollout. EPFO can prosecute them and compel them to pay back the amount received with interest."

It's difficult for a person like me who has resigned with no job in hand to ascertain within 2 months that they will get a job. Well, this rule is news to me. My last working day was June 1, 2013, so does that mean that even if I get a job, I better not join before August 1?

Importance of Continuing the Old PF Account

Tough times come in the life of all human beings irrespective of their financial positions. I made the suggestion for the continuation of the old PF account because it saves your contributions to the pension account and length of service, which ultimately decides the amount of pension when one retires. Closure of the PF account before retirement results in the loss of pension contributions and length of service. This can be prevented to some extent if the employee resigns after more than 10 years of service but before attaining the age of 50 years by obtaining a scheme certificate. Continuation of the old PF account throughout the entire career is the best solution. Change any number of employers but continue the same PF account. Breaks in between are immaterial.

Thanks and regards,
Shyam Agrawal

This is the number as per your internal PF allotment. Kindly ask them for the entire PF number. The numbers in Mumbai are as below:

KD/MAL/Co PF number/3 digits/7 digits PF office number.

Take this number from them, and it will be easier for you to track the same online. You can also view this number from the yearly PF return statements.

Regards,
Ashutosh Thakre

Dear Ashutosh, No luck... The PF statement shows the PF account number as D0281X only. I have written many emails to HR regarding this, but there have been no replies. It's strange why they hide the PF number from employees. Is there any way out?

Thank you.