I have the following queries regarding EPF discontinuity.
Please clarify me?
1) I had worked in a MNC for past 10 months. Now I moved to a start-up organisation which has employees less than 20. So i ain't eligible for paying my EPF in the present organisation.
a) How long can discontinuity in paying EPF allowed(i.e. is it fine upto 2 or 3 years a person can discontinue his EPF payment)?
2) Since my present organisation is not eligible for EPF payment. I am maintaing my EPF account with my previous employer itself. So in this case
how much interest will i get? How long is it allowed to maintain the EPF account with previous employer?
Are there any other alternatives to continue my EPF account to continue?.
From United States, Sunnyvale
Please clarify me?
1) I had worked in a MNC for past 10 months. Now I moved to a start-up organisation which has employees less than 20. So i ain't eligible for paying my EPF in the present organisation.
a) How long can discontinuity in paying EPF allowed(i.e. is it fine upto 2 or 3 years a person can discontinue his EPF payment)?
2) Since my present organisation is not eligible for EPF payment. I am maintaing my EPF account with my previous employer itself. So in this case
how much interest will i get? How long is it allowed to maintain the EPF account with previous employer?
Are there any other alternatives to continue my EPF account to continue?.
From United States, Sunnyvale
Dear Barani,
If you have joined an establishment that is not covered under EPF, in my opinion it is better to withdraw the EPF amount and obtain a scheme certificate under EPS to ensure that your past service is preserved for pension purposes.
It is not advisable to keep the PF account inactive for long periods.
M.V.KANNAN
From India, Madras
257If you have joined an establishment that is not covered under EPF, in my opinion it is better to withdraw the EPF amount and obtain a scheme certificate under EPS to ensure that your past service is preserved for pension purposes.
It is not advisable to keep the PF account inactive for long periods.
M.V.KANNAN
From India, Madras
1. If your present employer also wish to pay EPF, then you can continue. Less than 20 employees will not be a hindrance.
2. There is no time limit to continue the inoperative accounts. But the Central Board of Trustees (EPF) has decided on 15.9.2010 to disallow interest accumulation on inoperative accounts from the 37th month (from the date of non operation) onwards.
3. If the present employer is not willing to go with EPF, as suggested by Mr. Kannan you may withdraw PF and obtain scheme certificate on EPS.
Abbas.P.S
From India, Bangalore
2. There is no time limit to continue the inoperative accounts. But the Central Board of Trustees (EPF) has decided on 15.9.2010 to disallow interest accumulation on inoperative accounts from the 37th month (from the date of non operation) onwards.
3. If the present employer is not willing to go with EPF, as suggested by Mr. Kannan you may withdraw PF and obtain scheme certificate on EPS.
Abbas.P.S
From India, Bangalore
Dear KANNAN/Abbas, Thanks for your reply. Can you share what is scheme certificate/ EPS? in details. It will be very useful fro me. Pls help me regarding this.
From United States, Sunnyvale
From United States, Sunnyvale
Dear Barani,
EPS is the abbrevation of Employees Pension Scheme - 1995 under the Employees Provident Fund Organisation, which is also known as the PF pension scheme. For those did not attain an age of 58 years may apply for Scheme Certificate in form 10C, in which full details of the above EPS will be recorded. When you are eligible for pension or otherwise for the withdrawal benefit, the scheme certificate can be furnished so that it will be easy to prove your claim.
Abbas.P.S
From India, Bangalore
EPS is the abbrevation of Employees Pension Scheme - 1995 under the Employees Provident Fund Organisation, which is also known as the PF pension scheme. For those did not attain an age of 58 years may apply for Scheme Certificate in form 10C, in which full details of the above EPS will be recorded. When you are eligible for pension or otherwise for the withdrawal benefit, the scheme certificate can be furnished so that it will be easy to prove your claim.
Abbas.P.S
From India, Bangalore
Dear Barani,
Abbas has already answered your query. The scheme certificate is issued by the EPF office when there is a discontinuity in PF membership owing to various factors such as break in service, joining an establishment not covered under PF, overseas studies, employment etc.,
In such a case you need to seek a scheme certificate from the EPF office, this certificate will mention the period of service rendered by you in the organisation, wages drawn by you etc. The period of service indicated by the EPF office in the scheme certificate will be considered while calculating the pension benefits upon your attaining superannuation. There will a column in the Pension claim form seeking for scheme certificates available with you. At that time you need to furnish the original scheme certificates held by you to enable the EPF authorities to compute the total service rendered by you while you were in service during your lifetime till you furnish your claim for pension.
Trust matter is clear
Regards
M.V.KANNAN
From India, Madras
Abbas has already answered your query. The scheme certificate is issued by the EPF office when there is a discontinuity in PF membership owing to various factors such as break in service, joining an establishment not covered under PF, overseas studies, employment etc.,
In such a case you need to seek a scheme certificate from the EPF office, this certificate will mention the period of service rendered by you in the organisation, wages drawn by you etc. The period of service indicated by the EPF office in the scheme certificate will be considered while calculating the pension benefits upon your attaining superannuation. There will a column in the Pension claim form seeking for scheme certificates available with you. At that time you need to furnish the original scheme certificates held by you to enable the EPF authorities to compute the total service rendered by you while you were in service during your lifetime till you furnish your claim for pension.
Trust matter is clear
Regards
M.V.KANNAN
From India, Madras
Hi,
I was working with a company for last two years. I have an EPF A/C with them. Now I have resigned and joined another company which does not have EPF facility. What are my options.
1. Am I eligible to close the A/C and withdraw the entire amount ? If YES then is it taxable ?
2. If NOT then can I maintain the A/C by depositing 24% of my basic each month by myself without intervention of my current and previous employer ?
Thanks in advance.
Regards,
RBhunia
From India, Kolkata
I was working with a company for last two years. I have an EPF A/C with them. Now I have resigned and joined another company which does not have EPF facility. What are my options.
1. Am I eligible to close the A/C and withdraw the entire amount ? If YES then is it taxable ?
2. If NOT then can I maintain the A/C by depositing 24% of my basic each month by myself without intervention of my current and previous employer ?
Thanks in advance.
Regards,
RBhunia
From India, Kolkata
Greetings Bhunia,
The recommendations made to Bharani will also be applicable to you.
a) You can withdraw the EPF amount by submitting Form 19 through your past employer to the EPF office.
b) You can seek a either withdraw the EPS amount also as you have worked for only 2 years or opt for scheme certificate by submitting Form 10C through your past employer to the EPF office.
The amount withdrawn by you is not taxable. You will not be able to contribute 24% of your basic salary to the EPF office directly because the contributions are taken into account by the EPF office only through employers who are assigned a code number and the employer thereafter assign a sub code to their employees.
Trust the matter is clear.
Regards
From India, Madras
The recommendations made to Bharani will also be applicable to you.
a) You can withdraw the EPF amount by submitting Form 19 through your past employer to the EPF office.
b) You can seek a either withdraw the EPS amount also as you have worked for only 2 years or opt for scheme certificate by submitting Form 10C through your past employer to the EPF office.
The amount withdrawn by you is not taxable. You will not be able to contribute 24% of your basic salary to the EPF office directly because the contributions are taken into account by the EPF office only through employers who are assigned a code number and the employer thereafter assign a sub code to their employees.
Trust the matter is clear.
Regards
From India, Madras
Dear All, Please let me know whether getting a certificate for disabled employees will enable the company to pay PF on their PF
From India, Bangalore
From India, Bangalore
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