Dear Sir, One of my employee has completed 10 yrs in the company. So my question is 1) after 10 yrs, does PF amount gets transferred in to pension fund. 2) if, yes than how much he can get through pension fund? 3) if he feels that he would not get much in pension fund and he want to withdraw is PF fund, the what is the procedure? 4) In short, if an employee is on job and he completes 10 yrs of service, then what is the procedure to remove fund from the PF account.?
From India, Mumbai
1From India, Mumbai
An employee who has been a member of EPF for the last 10 years will not be eligible for withdrawal of Pension Fund. But he will start getting pension on his attaining the age of 58 years. However, he can withdraw the Provident Fund at any time or when he leaves employment even before 58 years. There is no such transfer of PF to Pension after 10 years. Right from month one of employment Pension Fund is made and is credited by 8.33% of contribution payable by the employer. That is, the employee's share of 12% will go to Provident Fund and out of 12% payable by the employer, 8.33% will be paid to Pension Fund and the remaining 3.67% will be paid in to Provident Fund. If an employee leaves service before 10 years, he can withdraw(not mandatory that he should withdraw) both these funds whereas, if he leaves after 10 years, he can get withdrawal of Provident Fund (12%+3.67%) only. The Pension Fund containing contribution by employer of 8.33% will not be paid but will be utilised for payment of monthly pension after 58 years of age. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
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
From India
Respected Madhu Sir,
I would like know some more in this case. one of our Sr. employee is completing 10 years of service , @ present his age is 47 & his Basic + D.A. salary is more than 10.000-00 .
my question is if choose to have pension , he will get pension on basis of his pension fund contribution or he will get pension on basis of last drawn Basic + DA @ the time attaining age of 58 ,
I would also like to know what will be more beneficial for him , to take pension , or to with draw pension fund.
Durgadas Gosavi
From India, Pune
I would like know some more in this case. one of our Sr. employee is completing 10 years of service , @ present his age is 47 & his Basic + D.A. salary is more than 10.000-00 .
my question is if choose to have pension , he will get pension on basis of his pension fund contribution or he will get pension on basis of last drawn Basic + DA @ the time attaining age of 58 ,
I would also like to know what will be more beneficial for him , to take pension , or to with draw pension fund.
Durgadas Gosavi
From India, Pune
Pension is always linked to service and average pensionable salary. 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 pension on the basis of 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, ie, Rs 6500. The present formula for calculation of pension is:
Pensionable Salary X Pensionable Service/ 70
For service prior to Nov 15, 1995, if any, past service benefit 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
Pensionable Salary X Pensionable Service/ 70
For service prior to Nov 15, 1995, if any, past service benefit 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
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