Handling PF and LWF for Employees Who Leave Within Days: What Are the Rules?

Dear Seniors,

Please let me know in case an employee joins us on the 1st and leaves on the 3rd of that month with any reason. If we have opened his PF and LWF accounts, do we need to deposit the amount in both accounts? Also, what should we put as the leaving date in these two accounts?

As the account is already open, please pay the contribution for 3 days and then proceed to show the employee exit after the contribution payment. The reason for leaving is short service (cessation).

Dear Sir,

In the PF deduction, there is a deduction on both the employer's and employee's sides. Therefore, I would like to know if an employee leaves the company before completing 6 months and wishes to withdraw their PF amount, will they receive the entire amount (both employer and employee shares) or only the employee's share?

Regards.

Dear Amitkumar,

He will not get the whole amount of PF. He will only receive the PF (3.67% Employee's + 3.67% Employer's = 7.34% return of both contributions) amount, not the pension amount.

Regards

EPS withdrawal Claim Form 10C will be rejected for membership of less than 6 months. He can opt to get a "Scheme Certificate" for less than 6 months membership.

If the employer's share for the said period is less than 1000/- paid, no claim will be entertained. However, the employee can seed this UAN in the next service, and this amount would be available to him in credit. Withdrawal is not possible in any circumstances for 3 days of service.

Dear Tanaji,

You mentioned that the employee will receive only 3.67% E's and 3.67% of the E'rs side, totaling 7.34%. Can you please explain to me what the 3.67% represents and where it comes from? Is it related to administrative charges, pension benefits, or something else?

Regards

Dear Sarita, first of all, you should not have calculated his 3 days' salary as he was a new employee, so his PF contribution issue would not have arisen. Now, since you have allotted him a PF account number, pay 3 days' PF contribution into that account if you have actually calculated his salary and debited it to the salary account. If you have not calculated his salary, put a remark in ECR joined & left with 0 contribution.

Dear Amitkumar, if an employee has less than 6 months of PF membership, he/she will not get any amount from the Pension Fund account; however, he can request a Pension Certificate. Upon PF withdrawal, the member will receive his full 12% employee's contribution, and from the employer's share, he will get 12 - 8.33 (Pension Contr.) = 3.67%. Thus, the member will receive a total contribution of 15.67%.

Suresh