Hi all,
Our organization's employees want to withdraw the entire PF amount, including the FPF amount, even though they have not completed their 10 years of service. My query is:
a) Can an employee withdraw their entire PF amount while working in the same organization with a new PF number, without any break?
b) If not, then under what clause/section is it mentioned?
c) We have made them aware of the benefits of FPS and have also offered them advances under Form No. 31. However, they still do not want to continue their contributions to the Employee Pension Fund. How can we address this situation?
R.K Katri
From India, Ludhiana
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2Our organization's employees want to withdraw the entire PF amount, including the FPF amount, even though they have not completed their 10 years of service. My query is:
a) Can an employee withdraw their entire PF amount while working in the same organization with a new PF number, without any break?
b) If not, then under what clause/section is it mentioned?
c) We have made them aware of the benefits of FPS and have also offered them advances under Form No. 31. However, they still do not want to continue their contributions to the Employee Pension Fund. How can we address this situation?
R.K Katri
From India, Ludhiana
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Hi Katri,
I think this is not possible. You cannot take a new PF number for the same employee who already holds one. If you want to close his current PF number, then that employee has to resign.
To my knowledge, no one can withdraw PF amount while in service. I am not sure about this idea, but still, I wanted to share it with you.
If your company policies permit, an employee can resign and rejoin your company again in the next month. This way, the employee will get a new PF number, and you can close the old one.
From India, Madras
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I think this is not possible. You cannot take a new PF number for the same employee who already holds one. If you want to close his current PF number, then that employee has to resign.
To my knowledge, no one can withdraw PF amount while in service. I am not sure about this idea, but still, I wanted to share it with you.
If your company policies permit, an employee can resign and rejoin your company again in the next month. This way, the employee will get a new PF number, and you can close the old one.
From India, Madras
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Dear Rajasekar has replied to your query, but I would like to clarify a few more points. An employee cannot withdraw their PF until they are in service. You cannot allocate another PF code without a break in service, as mentioned by Rajesh. Resigning and rejoining the next month is not a viable option. If someone resigns and rejoins before withdrawing PF contributions, you should deposit the PF into the same account number. Form 11, taken from employees at the time of joining, is a declaration stating that the individual was not a member of PF in their previous organization.
The only solution is for them to resign, take full and final settlement, and withdraw PF. Later, if you wish, you can rehire them.
From India, Delhi
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The only solution is for them to resign, take full and final settlement, and withdraw PF. Later, if you wish, you can rehire them.
From India, Delhi
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As mentioned above, 'the employee cannot withdraw his PF benefits when he is in service' is there any supporting written law in PF act?
From India, Bangalore
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From India, Bangalore
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Hi, I am working in an NPO. My manager wants me to write a letter to a bank regarding the sudden increase in the interest rate of the loan we have taken, without providing any information about our organization. Can anyone help me format a letter for this? It's very urgent.
From India, Madras
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From India, Madras
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Hi,
My dad is a state government employee. He is still in service but he withdrew his PF for my wedding. I just wanted to mention that PF can be withdrawn while still in service, but only for certain reasons specified by the law.
Thanks,
Vineet Saini
From India, Chandigarh
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My dad is a state government employee. He is still in service but he withdrew his PF for my wedding. I just wanted to mention that PF can be withdrawn while still in service, but only for certain reasons specified by the law.
Thanks,
Vineet Saini
From India, Chandigarh
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Dear Vineet Saini,
Please note that your father must be a PF member for about 7 years in order to be eligible to apply for an Advance. He has obtained an Advance on his PF contributions for various reasons, such as your sister's marriage, your marriage, medical expenses, renovation of your home, purchase of a plot, purchase of a flat, etc. It is important to highlight that no one can withdraw their PF dues without resigning from the firm or company.
Thank you.
From India, Mumbai
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Please note that your father must be a PF member for about 7 years in order to be eligible to apply for an Advance. He has obtained an Advance on his PF contributions for various reasons, such as your sister's marriage, your marriage, medical expenses, renovation of your home, purchase of a plot, purchase of a flat, etc. It is important to highlight that no one can withdraw their PF dues without resigning from the firm or company.
Thank you.
From India, Mumbai
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF WITHDRAWAL RULES.zip
PF-Know Employees Provident Fund-CHART-L-4. doc