Respected Seniors,
Could you please clarify my doubts below?
Actually, PF is deducted as follows:
- 12% Employee Contribution
- 12% Employer Contribution (8.33% + 3.67%)
I was informed that when an employee withdraws the PF amount during the service, he or she will only receive 12% employee contribution + 3.67% of Employer Contribution. Is this correct?
I was also told that 8.33% of Employer Contribution goes to the Pension Scheme as interest, and when withdrawing in between, this amount will not be given to the employee. Is this correct?
Please clarify.
Also, what will happen to this 8.33% amount after maturity, i.e., after 58 years (After Retirement)? Will it be given to the employee as a pension? Please explain.
Thanks
From India, Madras
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6Could you please clarify my doubts below?
Actually, PF is deducted as follows:
- 12% Employee Contribution
- 12% Employer Contribution (8.33% + 3.67%)
I was informed that when an employee withdraws the PF amount during the service, he or she will only receive 12% employee contribution + 3.67% of Employer Contribution. Is this correct?
I was also told that 8.33% of Employer Contribution goes to the Pension Scheme as interest, and when withdrawing in between, this amount will not be given to the employee. Is this correct?
Please clarify.
Also, what will happen to this 8.33% amount after maturity, i.e., after 58 years (After Retirement)? Will it be given to the employee as a pension? Please explain.
Thanks
From India, Madras
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Dear Devibala, If the service in EPS is 10 years or more, member will be eligible for pension; otherwise for one time withdrawal benefit. Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Thanks Abbas. Which means, if an employee with less than 10 years, withdraws, he or she will not get the amount which was accumulated under pension scheme... Am I Right?
From India, Madras
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From India, Madras
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As per the PF Act of 1952, an employee having more than 9 years of contribution in the same account number is eligible for a pension. However, for less than 9 years of service, they can withdraw both EPF (12% + 3.67%) and EPS (8.33%), including interest, using Form 19 for EPF and Form 10C for EPS. If the service duration is more than 9 years, Form 19 is used for EPF, and Form 10D is used for a monthly pension instead of 10C.
Regards
From India, Bangalore
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Regards
From India, Bangalore
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If service is less than 10 years, the member will get a one-time withdrawal benefit. However, this is not a pension contribution with interest. Instead, a factor as per Table D multiplied by the salary will be paid towards the withdrawal benefit.
Regards,
Abbas.P.S
From India, Bangalore
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Regards,
Abbas.P.S
From India, Bangalore
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PF & Pension Amdmt Scheme 2010 for IW.pdf
Employee Pension Scheme, 1995.doc