How Can We Educate Employees on PF Deductions and Withdrawals When They Plan to Leave Soon?

Training Employees on Provident Fund (PF) Deduction

I joined a new company in Jalandhar, where some employees do not want to have their PF deducted. How can we train them about it? They have a reason for not staying long in any company.

Withdrawing PF After Leaving a Company

How can they withdraw their PF after leaving?

Regards,
Gurjeet Kaur

Hi Gurjeet, Your question prompted me to go back and recollect my old experience in the Retail Industry where I got my first job in HR. I was appointed as Manager-HR in a very large retail store where 2,500 employees were working. As you mentioned, the turnover rate (attrition) was a bit high, and employees were not keen on participating in the PF and ESI schemes.

Initially, I thought that employees were reluctant to join the PF and ESI schemes because:
1. Deductions would be made from their salaries.
2. They were not planning to stay in one job or organization for a long time.

Later, I realized that their reluctance stemmed from a lack of awareness about the benefits, facilities available to them, and the procedures for claiming funds. They believed that the deducted amount would not be returned to them and would be held by the government for their benefit.

As a team, we began providing regular training sessions, and gradually, they started to understand the importance and benefits of being covered under PF and ESI.

My suggestion to you is to provide regular training sessions and observe the results.

Regards,
M. Kannan

As my friend shared his practical experience related to your issue, the following things may click if implemented well. Try to communicate them particularly one by one or find a mentor to pass your message in their own state of mind.

Schedule Training and Awareness Programs

Schedule training and awareness programs for them, showing them the calculative profits in hand after one year, what they will get. Brief them on the practical benefits of deducting PF, etc.

You can also say the same major share will be given by the employer if you agree to deductions. These monthly deductions on both sides (employer and employee) can be in the form of monthly savings. When shifting jobs, your PF account number will remain the same. When you really need this amount, it will help you a lot. At that time, you will feel proud of yourselves, grateful for your employer's contribution and policy for a better life for employees.

Organize such awareness programs always but after proper intervals. You have to clarify the benefits of PF deductions. Also, tell them that day by day, their experience will grow older, their salaries will increase accordingly, and their PF and ESIC amounts and facilities will grow in the same ratio.

Hope such things will do a lot.

Regards,
Manish Srivastava

ISO Consultant & HR

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