Dear Friends,
I Need a clarification, If an Employee work for an organisation and resigned his job, before 10 year, say for eg. 8 year. When he claims for PF, whether he will be paid his pension fund ie. 8.33% of his basic paid by the company.?
Or He will be paid only 12% of his share and 3.67% of the company share and its interest.
Kindly clarify my doubt.
Thank You.
Balamurugan. K
From India, Pondicherry
9I Need a clarification, If an Employee work for an organisation and resigned his job, before 10 year, say for eg. 8 year. When he claims for PF, whether he will be paid his pension fund ie. 8.33% of his basic paid by the company.?
Or He will be paid only 12% of his share and 3.67% of the company share and its interest.
Kindly clarify my doubt.
Thank You.
Balamurugan. K
From India, Pondicherry
Dear Friend,
You can get full PF Amount with interest.
if you Contribute Pf continuously for 10 years of Services you will get Pension Scheme Certificate for the Rest of Amount - 8.33%.
Regards
Srinivas
From India, Hyderabad
You can get full PF Amount with interest.
if you Contribute Pf continuously for 10 years of Services you will get Pension Scheme Certificate for the Rest of Amount - 8.33%.
Regards
Srinivas
From India, Hyderabad
Dear Mr. Balamurugan. K,
With respect to your query, yes the employee will be paid both PF & Pension Fund. But the clause goes like this -
This rule is applicable uptill 9 years of continuous service (assuming in your cited case it is continuous 8 years of service) as after 10 years, employee is eligible for pension.
There is something called Table D under which the eligibility of pension fund is mentioned. There is a slab for each completed year of service & you get n times of your last drawn salary subject to maximum of 6500 per month. To make it clear let me cite an example.
Imagine the total contribution (yours + employer) is 3lac INR out of which 2lac is PF and 1lac is Pension. If you withdraw your PF before 10 years (anywhere between 1 to 9 years) you get 100% of PF amount but EPS is dependent on Table D.
Table D for your reference.
Year of service=Proportion of wages at exit
1=1.02
2=2.05
3=3.1
4=4.18
5=5.28
6=6.4
7=7.54
8=8.7
9=9.88
So, EPS = 6500*8.7= 56550 and not entire 1 lac irrespective of your actual salary.
Hope this helps.
Regards,
Hiral
From India, Ahmedabad
With respect to your query, yes the employee will be paid both PF & Pension Fund. But the clause goes like this -
This rule is applicable uptill 9 years of continuous service (assuming in your cited case it is continuous 8 years of service) as after 10 years, employee is eligible for pension.
There is something called Table D under which the eligibility of pension fund is mentioned. There is a slab for each completed year of service & you get n times of your last drawn salary subject to maximum of 6500 per month. To make it clear let me cite an example.
Imagine the total contribution (yours + employer) is 3lac INR out of which 2lac is PF and 1lac is Pension. If you withdraw your PF before 10 years (anywhere between 1 to 9 years) you get 100% of PF amount but EPS is dependent on Table D.
Table D for your reference.
Year of service=Proportion of wages at exit
1=1.02
2=2.05
3=3.1
4=4.18
5=5.28
6=6.4
7=7.54
8=8.7
9=9.88
So, EPS = 6500*8.7= 56550 and not entire 1 lac irrespective of your actual salary.
Hope this helps.
Regards,
Hiral
From India, Ahmedabad
so balance amount of eps (100000-56550) we are not eligible to receive . Could u please tell me what will epfo deptt do with our balance amount after all that is our saving our money.
From India, Delhi
From India, Delhi
Dear Mr Hiral/Dear Mr Sunil
The table given by Mr Hiral is right but the example given by him is wrong
Pension id deducted and deposited only on Rs 6500/ If your organisation is paying on full salary, balance will go to PF and not to pension. So maximum pension fund that will be deposited for any individual will not excedd 6500*8.33 = Rs 541..45. Hence in a year it will not exceed Rs 6497.40. So for 8 years, the amount paid in Pension account will not exceed Rs 51979.20
As per the table you will 8.7 times of Rs 6500 or if your salary was less it will be 8.7 times of that lower salary on which pension was contributed. There are some more intricate calculations involved and I am not completely aware of all methods. But a person who has contributed full for 8 years an amount equal to Rs 51979 will get Rs 56550/ This means the person will get slightly more than what he has contributed and the money is not taken by the PF Trust
T Sivasankaran
From India, Chennai
The table given by Mr Hiral is right but the example given by him is wrong
Pension id deducted and deposited only on Rs 6500/ If your organisation is paying on full salary, balance will go to PF and not to pension. So maximum pension fund that will be deposited for any individual will not excedd 6500*8.33 = Rs 541..45. Hence in a year it will not exceed Rs 6497.40. So for 8 years, the amount paid in Pension account will not exceed Rs 51979.20
As per the table you will 8.7 times of Rs 6500 or if your salary was less it will be 8.7 times of that lower salary on which pension was contributed. There are some more intricate calculations involved and I am not completely aware of all methods. But a person who has contributed full for 8 years an amount equal to Rs 51979 will get Rs 56550/ This means the person will get slightly more than what he has contributed and the money is not taken by the PF Trust
T Sivasankaran
From India, Chennai
Dear T Sivasankaran, Just to correct - "Ms. Hiral" :) and the example was not wrong, it was focusing on Pensing contribution. Nonetheless, nice clarity from your end too.
From India, Ahmedabad
From India, Ahmedabad
Hi,
Rightly pointed out in earlier post, the balance amount is deposited towards PF contribution.
Again, an example will make it clear and understandable :
Actual Basic earned for a month = Rs. 9000
For PF calculation
Employee share = 9000*12% = 1080/-
Employer share;
EPS = 6500*8.33% = 541.45/-
EPF = Employee Contri - EPS = 1080 - 541.45/- = 538.55/-
EDLL Charges = 6500*0.50% = 32.5/-
EDLL Admin charges = 6500*0.01% = 0.65/-
PF Admin Charges = 9000*1.1% = 99/-
From India, Ahmedabad
Rightly pointed out in earlier post, the balance amount is deposited towards PF contribution.
Again, an example will make it clear and understandable :
Actual Basic earned for a month = Rs. 9000
For PF calculation
Employee share = 9000*12% = 1080/-
Employer share;
EPS = 6500*8.33% = 541.45/-
EPF = Employee Contri - EPS = 1080 - 541.45/- = 538.55/-
EDLL Charges = 6500*0.50% = 32.5/-
EDLL Admin charges = 6500*0.01% = 0.65/-
PF Admin Charges = 9000*1.1% = 99/-
From India, Ahmedabad
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