Hi Friends, I am currently working in a pharma company and have a PF account. But if I change my job and withdraw the entire amount of PF and Pension, will it be compulsory for me to be a member of the PF fund, if I don't want to be.
Regards, Surya
From India, Pune
Acknowledge(0)
Amend(0)
2Regards, Surya
From India, Pune
Acknowledge(0)Amend(0)
Hi Friend, If you withdraw your PF from your current PF account then it will not be necessary to become a member of PF (But if ur basic is more than the prescribed limit) Regards, Rajeev Chaudhary
From India, Chandigarh
Acknowledge(0)Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
Hi Surya,
Either withdrawing or continuing PF is left to you. But PF is a social security scheme. It is savings that you accumulate over a period of your service, regardless of whether it is within the salary limit or exceeds your ceiling. Considering the savings aspect and for long-term future planning, it is better not to withdraw your PF when you switch to another company; rather, you should transfer your PF.
Regards, R Devarajan
From India, Madras
Acknowledge(0)Amend(0)
Either withdrawing or continuing PF is left to you. But PF is a social security scheme. It is savings that you accumulate over a period of your service, regardless of whether it is within the salary limit or exceeds your ceiling. Considering the savings aspect and for long-term future planning, it is better not to withdraw your PF when you switch to another company; rather, you should transfer your PF.
Regards, R Devarajan
From India, Madras
Acknowledge(0)Amend(0)
Surya, if you are planning to withdraw your PF, for your information, it will attract income tax on the amount. You are not free to choose if you want to be a member of the PF scheme or not; companies are legally bound to deduct the PF. So, I am sorry, you are not free to make a choice.
Regards,
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
Acknowledge(0)Amend(0)
Regards,
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi Sanjeev,
I am Devarajan. I am not clear in your explanation on choosing PF that you are advising Mr. Surya. Why do you want to use the term choose or not to choose PF? Consider it as a savings aspect with benefits and contributions from both the employer and employee. So, Surya, be clear: do not withdraw PF when you shift from one company to another unless there is any constraint or urgent funds requirement.
Regards,
R. Devarajan
From India, Madras
Acknowledge(0)Amend(0)
I am Devarajan. I am not clear in your explanation on choosing PF that you are advising Mr. Surya. Why do you want to use the term choose or not to choose PF? Consider it as a savings aspect with benefits and contributions from both the employer and employee. So, Surya, be clear: do not withdraw PF when you shift from one company to another unless there is any constraint or urgent funds requirement.
Regards,
R. Devarajan
From India, Madras
Acknowledge(0)Amend(0)
Devrajan,
I was answering Surya's query on "will it be compulsory for me to be a member of PF fund if I don't want to be." I mentioned that he is not free to choose that. It is a legal binding on companies to deduct PF and thereby provide Social Security to their employees. Regarding the withdrawal of PF, I said if he wishes to, he can withdraw his PF, but that will attract tax.
I hope I am clear now.
Regards,
Sanjeev Sharma
From India, Mumbai
Acknowledge(0)Amend(0)
I was answering Surya's query on "will it be compulsory for me to be a member of PF fund if I don't want to be." I mentioned that he is not free to choose that. It is a legal binding on companies to deduct PF and thereby provide Social Security to their employees. Regarding the withdrawal of PF, I said if he wishes to, he can withdraw his PF, but that will attract tax.
I hope I am clear now.
Regards,
Sanjeev Sharma
From India, Mumbai
Acknowledge(0)Amend(0)
hi you are right sanjeev, hope we both have given clear and precise answer to surya. Also mr surya, tell us both whether you are satisfied with our answers, if not, feel free to ask us. devarajan
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
dear surya, p.f deduction is mandatory if your basic is less than 6500/-. Above 6500/- it’s optional so you can decide accordingly. Regards Gitanjali Katoch
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Hi Surya,
Unless your current employer is not registered with the PF authorities, you will not have your PF deducted. Also, if your basic salary is less than 10000 per month, you will not fall under the PF purview.
Hope this resolves your doubts! 😛
Cheers,
Manmeet
From United States
Acknowledge(0)Amend(0)
Unless your current employer is not registered with the PF authorities, you will not have your PF deducted. Also, if your basic salary is less than 10000 per month, you will not fall under the PF purview.
Hope this resolves your doubts! 😛
Cheers,
Manmeet
From United States
Acknowledge(0)Amend(0)
Hi Surya,
Unless your current employer is not registered with the PF authorities, you will not have your PF deducted. Also, if your basic salary is less than Rs. 10,000 per month, you will not fall under the PF purview. Hope this solves your doubts! 😛
Cheers,
Manmeet
As per the PF Act, the first requirement is that your firm should be registered under the Act. If the firm is registered under the Act, then every employee employed by the firm is eligible for PF, and their PF is bound to be deducted unless and until they meet the following two requirements under the Act:
1. Their basic salary is more than Rs. 6,500.00
2. They provide a declaration in Form - 11 for not opting for any PF deduction.
If they meet the above-mentioned requirements, only then are they not liable for PF deduction. Still have any confusion? Feel free to get back to me.
Thanks,
Aditya Gupta
From India, Delhi
Acknowledge(0)Amend(0)
Unless your current employer is not registered with the PF authorities, you will not have your PF deducted. Also, if your basic salary is less than Rs. 10,000 per month, you will not fall under the PF purview. Hope this solves your doubts! 😛
Cheers,
Manmeet
As per the PF Act, the first requirement is that your firm should be registered under the Act. If the firm is registered under the Act, then every employee employed by the firm is eligible for PF, and their PF is bound to be deducted unless and until they meet the following two requirements under the Act:
1. Their basic salary is more than Rs. 6,500.00
2. They provide a declaration in Form - 11 for not opting for any PF deduction.
If they meet the above-mentioned requirements, only then are they not liable for PF deduction. Still have any confusion? Feel free to get back to me.
Thanks,
Aditya Gupta
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf