Confused About PF Transfer? Why My Employer's Contribution Seems Short

Dear All,

I was working for an organization from Jan 2011 to June 2015, i.e., for 3.5 years. 1000 Rupees were deducted (as 12% of my basic) from my salary, and the same amount should also be contributed by the employer. In this way, 2000 Rupees/month has to be added for 3.5 years, which makes around 82000/- Rupees. However, when I applied for PF transfer from one organization to another, I got only 65000/-. Please advise.

Thanks and Regards,

Amit Jha
8109467130

Understanding Provident Fund Contributions

From a provident fund perspective, there are two different aspects: one belongs to the member, and the other to the employer. The member is generally required to make a contribution of 12% of their basic salary, which is Rs. 1000 in your case, and the employer also contributes an equal amount. The Employees' Provident Fund Organization (EPFO) has two schemes: one pertains to the member's EPF contribution and the other to the employer, called EPS.

Your contribution has been paid into account no. 1 of the EPF Scheme, including the employer's share at 3.67% of the employer's contribution. The total contribution paid into account number 1 amounts to 15.67% out of the total 25%, and the rest of the amount has been allocated to the EPS (Employees' Pension Scheme).

Transfer of PF Contributions

You have filled out Form no. 13 for the transfer of PF contributions, under the assumption that the entire amount held by the PF authority will be transferred to your new member ID. The amount of EPS is still held by the EPF authority, for which you can obtain a scheme certificate and further add to your services with the new member ID. The amount of EPS is calculated on a prorate basis according to the length of service.

Thanks and regards,

R B Rao
Advocate

Dear Mr. Amit Jha,

Subsequent to the submission of Form 13, Annexure K will be prepared, consisting of both EPF amount and pension service. Kindly inquire with your present Sub Regional PF Commissioner's Office to ensure that the service on EPS has already been transferred. As Adv. R B Rao stated, the shortage in PF amount is due to remittance to the pension fund.

Abbas.P.S

Clarification on Employment Period and PF Contribution

The period of employment is shown as January 2011 to June 2015, which totals a contribution period of 54 months. However, you stated it as 3.5 years, which equals 42 months. Assuming that the contribution for the entire period is Rs. 1000.00 (your share) + Rs. 1000.00 (Employer share, which is bifurcated into Rs. 306 to PF and the remaining Rs. 694 to the pension fund). Accordingly, you are eligible to transfer your PF amount, which comes to Rs. 54,852.00 plus accrued interest. The contribution to the pension fund is directly transferred to your pension fund account of the new employer's PF Code and remains with the RPFC respective office that maintains the new employer's PF.

Thank you very much. As per Kulkarnimahesh, yes, it is 54 months. I had calculated it wrongly earlier. Now, can I withdraw the amount lying in my pension fund account? Also, once I withdrew my PF when I was working with another organization during the period from Feb 2008 to Dec 2010, I had requested a PF withdrawal and not for transfer. I received the payment of PF through a cheque/DD. So, at that time, was the amount I received the complete amount, or did I receive only the PF and not the amount lying in the PFA?

Regards

When you have earlier withdrawn your PF, the whole amount is paid to you along with the PFA (Pension Fund Account).

Understanding PF and PFA Withdrawals

Please note that when our service period is less than 10 years, both shares (Employee + Employer) are paid to the individual. However, the PF authorities do not give interest on the EPS-Employee Pension Scheme (to which you are referring as PFA).

So, don't be under the impression that the Pension Fund from your previous job (Feb 2008 to Dec. 2010) is also retained with the PF Office. Only your transferred contribution is with the PF authorities, and accordingly, the service period will be counted towards your Pension Period (which is a minimum of 10 years).

Regards

Dear Mr. Amit Jha,

If you submit Form 19, you will receive the PF amount only. To avail of withdrawal benefits from the pension fund, please submit Form 10C separately.

Abbas.P.S