Provident Fund – Those who work in the private sector are changing their employments from time to time to get the right promotion. This promotes both position and pay.
Provident Fund – Those who work in the private sector are changing their employments from time to time to get the right promotion. This promotes both position and pay. However, if many people leave one company and join another, the old firm’s PF withdraws. However, experts suggest that it is always best to transfer the PF account to a new company, without withdrawing the PF money after the employee changes. Come on, then, let’s learn why PF money can’t be withdrawn.
1. Don’t withdraw PF even after you change your job – there is always a change in the private sector. How free, then, is PF withdrawal in case of employment change? The question arises. Experts say that PF withdrawals are not the right decision when it comes to employee change. There are many damages to this.
2. Transfer PF Money – Instead of withdrawing PF after a job change, you transfer your EPF and Employees Pension Scheme (EPS) money to a new EPF account. This will not affect the benefit you get. Plus you can get that money together.
3. Tax exemption is over – The biggest risk of withdrawing PF money is that if you withdraw the entire amount of EPF before the completion of the 5-year contribution, you will lose the tax benefit. There is no tax deduction available under Section 80C of the Income Tax on the contribution made to the EPF. If you transfer the amount deposited in a PF account from one PF account to another PF account, you can claim the tax-deductible benefit.
4. PF Benefits – According to EPFO rules, if an EPS member completes a 10-year offer, they will receive a pension after 58 years. If an employee retires before the age of 58 and has a 10-year contribution in EPS, he or she receives a pension. This means that an employee’s 10-year contribution to EPS is mandatory.
5. Calculate this way – If you too have to calculate the EPFO pension, follow this formula. 1. Month Pension = (Pension Part X Total Salary in Wages) 2. Employees who join employees after November 16, 1995 are entitled to their pension, 60 months before the EPS contribution ceases. The maximum wage currently payable is Rs.15000 / month. Be sure to consider joining the employee when calculating.
6. Who gets a pension? – Pension benefit will be available to those who are enrolled in the EPS scheme on or before 16 November 1995 In addition, employees must contribute to their EPF account continuously for ten years. This offer must come from one or more employers on behalf of employees.
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