How can I get Provident fund amount for an employee on last working day?

How can I get the Provident Fund amount for an employee on their last working day as they are going to retire on that particular day?

Please tie up with the EPFO Office and try to get the payment of accumulated balance on the last day of service, if not at the earliest. Please check, will it not mean depriving the employee of the interest accrued on the last month of service. At any rate, continued investment in PF is a better option as it gives more return than any other investment in government security.

Dear Parag Patil,

Please log in to the PF ECR Portal and furnish details of employees retiring in the month.

Thank you.

It is not possible to give an employee his PF on the last day of the month. The claim can only be filed after he retires, and the processing takes time.

Dear Parag,

It is possible only in Exempted PF establishments, where you can hold the investment amount (both the PF contributions of the current month) and settle the PF account of a retired person from the uninvested amount. Of course, you are required to give a reason for the uninvested amount in the monthly return in Form 1, paragraph 27, for settlement of claims, home loans, advances, etc.

I was working in a German company, Bombay Metal & Alloys (GG Brand), established in 1943 and having an Exempted PF A/c. no. MH/10. I had settled many retired employees' PF claims, gratuities, etc., on the last working days through the uninvested PF contributions, which was necessary to invest in Government Securities.

In one situation, one of our workmen had joined Godrej & Boyce (PF Exemp.). We received his PF transfer application in Form 13 in the morning, and I transferred his PF accumulations in the afternoon by issuing a cheque favoring the Trustees, Godrej & Boyce Provident Fund. This was possible only because of the Exempted Provident Fund (Trust).

However, it is practically not possible to settle a PF claim on the last date of working of a retired person because the PF office will not settle the claim unless they receive the contribution until the last working day from the employer.

Regards,
Suresh