Navigating PF/EPF When Switching to a Startup: Should I Withdraw or Wait?

Hello All,

I used to work for a company for a year where my PF and EPF were being generated. I switched from this company to a startup. As this startup company has less than 20 employees, there is no PF scheme. I have the PF number from my earlier employer. Since there is no PF scheme in my current company, I cannot transfer the PF. Should I keep my PF account as it is (anticipating that in the future, I will join another company with a PF facility) or should I withdraw my amount?

Thanks,
Atish Raina

Yes, you can just keep it as it is. But as per the old PF rules, after 2 years of non-contribution, it will become dormant. Wait for some time and see how you will proceed further.

If not now, maybe later your company might reach 20 employees or even opt for EPF enrollment. Then you can transfer the same to the current company.

Jeevarathnam,

Is it two years or three years of inactivity in EPF before it becomes dormant?

Thank you.

To my knowledge, this was the rule position regarding dormant accounts until the rule was recently changed.

EPF accounts are deemed inoperative when there is no contribution for 36 months. Such accounts stopped earning interest from the financial year 2011-12.