Hi,
One of our employees worked for only 4 months and resigned from the job. He submitted withdrawal forms Form 19 and Form 10C, which were forwarded to the PF office. Now, the PF office has returned the Form 10C, stating that he has not rendered the eligible service of 6 months, so he is not eligible for the withdrawal benefit. Will he not get back the 8.33% of the employer contribution that goes to the Pension fund account?
Please suggest.
Regards,
erv
From India, Madras
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One of our employees worked for only 4 months and resigned from the job. He submitted withdrawal forms Form 19 and Form 10C, which were forwarded to the PF office. Now, the PF office has returned the Form 10C, stating that he has not rendered the eligible service of 6 months, so he is not eligible for the withdrawal benefit. Will he not get back the 8.33% of the employer contribution that goes to the Pension fund account?
Please suggest.
Regards,
erv
From India, Madras
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No. The PF department has acted as per their standard procedure. The amount is non refundable. - Hiten
From India, New Delhi
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32From India, New Delhi
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Mr. Erv, one more thing I also need to tell you is that if any employee worked less than 6 months, then in that case, it's better to transfer the funds to a new PF account instead of withdrawing. This is because in a transfer, the full amount is transferred to the PF account (8.33% + 3.67%)...Ashok
From India, New Delhi
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From India, New Delhi
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Hi, As per PF rules one has to render minimum 6 months service and contribution to get the refund of EPS contribution remitted to PF authorities.
From India, Madras
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From India, Madras
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Hi, An employee who worked in compony less than 6 months, then he is entitled to get his/her contribution only i.e 12%.
From India, Delhi
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From India, Delhi
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It is not that the amount is totally lost. Yes, he will not get the refund of the contribution because the period of service is less than six months. But as pointed out by 'shfeeul.hr' he can apply for a scheme certificate. It will facilitate counting of this contribution also for the further pension contribution that he may be making in his future appointments. In the end, he will get the benefit of a pension.
From India, Madras
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From India, Madras
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Amendment in Employees Pension Scheme, 1995.pdf
Employees Pension Scheme 1995.doc