My current employer doesn't deduct PF. However, I have a PF account with my previous employer. I do not wish to withdraw the accumulated PF from my previous PF account. How long can I keep this account in an inactive state? By inactive state, I mean that I do not want to withdraw or transfer the funds unless I join another organization where they resume deducting my PF. Will any penalty be imposed, or is there a maximum time limit for which I can keep the account inactive?
From India, Bangalore
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From India, Bangalore
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Now EPFO has removed the concept of an inactive/dead account state. Earlier, it was for a 36-month time period, i.e., 3 years, and thereafter declared as an inactive account. Now, you keep the accumulated fund with PF authorities until the age of retirement. Once you join another organization and transfer the account (can be done online), you will also receive interest every year as per norms. There is no penalty imposed for it.
From United Kingdom, London
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196From United Kingdom, London
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This will also benefit you when you quit this organization and join a new one that is covered under the act. Even if you draw a basic salary of Rs. 15,000+, the new employer will have to cover you under the act as you remain a PF member.
From India, Mumbai
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From India, Mumbai
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Vamsi Krishna If member has not withdrawn PF amount & his salary exceeds Rs. 15000, new establishment covered under PF Act has to deduct PF of at least Rs. 1800 per month.
From India, Mumbai
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From India, Mumbai
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When you fill up PF Form 11 in PF covered establishment you will declare that you were a PF member. That is proof enough for employer to deduct PF of Rs. 1800 even if your salary exceeds Rs 15000.
From India, Mumbai
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From India, Mumbai
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Dear Shrikant,
Thanks for the update. I was not aware of this condition. I know that if your basic increases by 15,000, then the current employer is liable to deduct PF on 15,000. However, for previous employment, I was not aware of this. If this clause is mentioned somewhere in the notification, could you please share that? It will be helpful for us to prove our point.
Regards,
Manish
From India, Ahmedabad
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Thanks for the update. I was not aware of this condition. I know that if your basic increases by 15,000, then the current employer is liable to deduct PF on 15,000. However, for previous employment, I was not aware of this. If this clause is mentioned somewhere in the notification, could you please share that? It will be helpful for us to prove our point.
Regards,
Manish
From India, Ahmedabad
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PF Calculation Sheet To The Subscribers At the Time Of Provident Fund Withdrawal.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc