Confused About My PF Calculation: Can Someone Help Me Understand What I'll Receive?

Hi all,

Please help me in calculating my PF amount that I am going to receive next month, as I am eager to know the same. The question arose due to some logic which I tried to calculate, but my HR person says it is wrong, so please help me out.

My total work in the last company was 4 years.

I have submitted two forms, i.e., Form 10C and 19C. The PF company has released an amount for my Form 10C, and the amount counts for Rs. 22,405 (which is 3.67% of my employer contribution, and the rest 8.33% is towards PF, i.e., out of 12%).

Now, I want to know what will be my remaining amount, i.e., PF amount.

The logic I applied, which is told to be wrong, is that 3.67% of the Pension amount is Rs. 22,405, which is part of the 12% of the employer contribution. By putting it into ratio, the rest of 8.67% gives you an amount of Rs. 51,851 (on a prorata basis).

Now, the question/doubt I have is if Rs. 22,405 (3.67%) + Rs. 51,851 (8.67%) = the sum of 12% (employer contribution), and will I receive again the same amount, i.e., Rs. 74,256 (12% of employer) + Rs. 74,256 of 12% which I have contributed, i.e., Employee contribution? Or is there any other way of calculation? Please tell me what amount I will receive when, as per Form 10C, the amount is Rs. 22,405.

Please clear the doubt.

Dear "shavalad",

I am giving hereunder the normal procedure for PF calculation as followed by the PF department.

Let's say your salary is 100 Rs. Then your contribution is Rs. 12, and your employer matches yours by contributing another Rs. 12. So, the total contribution to the PF office on your account is Rs. 24.

But, out of the employer's contribution of Rs. 12, 8.33% goes to the pension/gratuity fund, and the rest, 3.67%, is only credited to your PF account.

Now, calculating the totals,

Your contribution == Rs. 12.00

Employer contribution PF Amount (3.67% of 12) == Rs. 0.44

Pension fund amount (8.33%) == Rs. 11.56

Now, whenever a PF account holder puts in an application for withdrawal, there are two things that the PF department checks/verifies for.

1) Whether you have completed a minimum tenure of 6 months service with your employer or not. The 6 months time frame is a must for being eligible to either withdraw the pension fund or get the savings certificate for the pension fund amount.

2) Apart from the two forms you have mentioned, there is another form (right away, I am not able to recollect the form number) that needs to be filled out to allow you to withdraw even the pension fund amount. The department checks whether you have submitted this form or not. If this form is not submitted, then you will be given a savings certificate for the amount that is to your credit in the pension fund.

In other words, what you have calculated will be correct if your HR people have also submitted the pension fund withdrawal form along with your regular employee and employer contribution withdrawal forms. Just check with your HR people or talk to the PF office people, who will be able to tell you correctly what forms have been submitted by your employer.

So, if your employer has submitted the pension fund withdrawal form along with the other two, you will be getting 74k (your contribution) + 74k (employer contribution) + interest on the same. Else, you would be getting 74k (your contribution) + 22k (3.67% employer contribution) + interest on the above and a savings certificate for the balance 8.33%.

Hope your query is clarified. Let me know if you need any further clarity on this.

Warm Regards,

Samba Siva.