Dear Sir,
One of my employees has completed 10 years in the company. So, my questions are:
1) After 10 years, does the PF amount get transferred into the pension fund?
2) If yes, then how much can he get through the pension fund?
3) If he feels that he would not get much in the pension fund and wants to withdraw his PF fund, what is the procedure?
4) In short, if an employee is on the job and completes 10 years of service, then what is the procedure to remove funds from the PF account?
Thank you.
From India, Mumbai
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1One of my employees has completed 10 years in the company. So, my questions are:
1) After 10 years, does the PF amount get transferred into the pension fund?
2) If yes, then how much can he get through the pension fund?
3) If he feels that he would not get much in the pension fund and wants to withdraw his PF fund, what is the procedure?
4) In short, if an employee is on the job and completes 10 years of service, then what is the procedure to remove funds from the PF account?
Thank you.
From India, Mumbai
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An employee who has been a member of EPF for the last 10 years will not be eligible for withdrawal of Pension Fund. However, he will start receiving a pension upon attaining the age of 58. Yet, he can withdraw the Provident Fund at any time or when he leaves employment even before turning 58. There is no provision for transferring PF to Pension after 10 years. Right from the first month of employment, Pension Fund contributions are made, with 8.33% credited by the employer. Specifically, the employee's 12% share goes to the Provident Fund, while out of the employer's 12%, 8.33% is allocated to the Pension Fund and the remaining 3.67% to the Provident Fund.
If an employee exits service before 10 years, they have the option to withdraw both funds, but it is not mandatory. However, if they leave after 10 years, only the Provident Fund (12% + 3.67%) can be withdrawn. The employer's contribution of 8.33% to the Pension Fund will not be paid out but rather used for monthly pension payments after the age of 58.
Regards,
Madhu.T.K
From India, Kannur
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If an employee exits service before 10 years, they have the option to withdraw both funds, but it is not mandatory. However, if they leave after 10 years, only the Provident Fund (12% + 3.67%) can be withdrawn. The employer's contribution of 8.33% to the Pension Fund will not be paid out but rather used for monthly pension payments after the age of 58.
Regards,
Madhu.T.K
From India, Kannur
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yes, if ur working in organisation during and ur name of muster roll that period u can not demand for PF withdraw amount. u can applay for the P.F.Loan by submission of Form No-31.
From India
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From India
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Respected Madhu Sir,
I would like to know more about this case. One of our senior employees is completing 10 years of service. Currently, he is 47 years old, and his Basic + D.A. salary is more than 10,000-00.
My question is, if he chooses to have a pension, will he receive it based on his pension fund contribution or on the basis of the last drawn Basic + DA at the time of attaining the age of 58?
I would also like to know what would be more beneficial for him: to take the pension or to withdraw the pension fund.
Durgadas Gosavi
Email: durg_gosavi@rediffmail.com
From India, Pune
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I would like to know more about this case. One of our senior employees is completing 10 years of service. Currently, he is 47 years old, and his Basic + D.A. salary is more than 10,000-00.
My question is, if he chooses to have a pension, will he receive it based on his pension fund contribution or on the basis of the last drawn Basic + DA at the time of attaining the age of 58?
I would also like to know what would be more beneficial for him: to take the pension or to withdraw the pension fund.
Durgadas Gosavi
Email: durg_gosavi@rediffmail.com
From India, Pune
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Pension is always linked to service and average pensionable salary. The pensionable salary at present is Rs 6500 but likely to be increased. If your employee leaves now and decides to get full pension at the age of 58, then he will be getting a pension based on his pensionable service (say 10 years if he does not join another company after leaving your company and before attaining 58 years of age) and his average pensionable salary, i.e., Rs 6500. The present formula for the calculation of pension is: Pensionable Salary X Pensionable Service / 70.
For service prior to Nov 15, 1995, if any, past service benefits will be given in addition to the above. In the present case, of course, the past service will not be there as the service is only 10 years and it cannot be earlier than 1995.
Regards,
Madhu.T.K
From India, Kannur
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For service prior to Nov 15, 1995, if any, past service benefits will be given in addition to the above. In the present case, of course, the past service will not be there as the service is only 10 years and it cannot be earlier than 1995.
Regards,
Madhu.T.K
From India, Kannur
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PF guidleines for Pension fund.pdf
Download-New-re vised-Form-10c- UAN-pension-fun d-withdrawal-pi c.jpg