I have been working with an IT company for 2 years. I have a PF account with proper deductions of employee and employer contributions. Currently, I am receiving an offer from another company where the number of employees is more than 20. The salary is above 6500, but HR says since the company does not have its PF account, it will not deduct PF from the salary.
So, my question is, is it legal and practical? What would happen to my previous PF account if I close it by withdrawing the money? Will I be eligible next time for a PF account with some other company?
From India, Mumbai
Acknowledge(0)
Amend(0)
1So, my question is, is it legal and practical? What would happen to my previous PF account if I close it by withdrawing the money? Will I be eligible next time for a PF account with some other company?
From India, Mumbai
Acknowledge(0)Amend(0)
You may be aware that the ceiling limit of PF has been enhanced from ₹6,500 to ₹15,000 w.e.f. September 2014. If an organization employs 20 or more individuals, they should automatically be covered under the PF Act. Coverage of PF is mandatory under the aforementioned act. My suggestion is please don't withdraw your PF; instead, opt for a scheme certificate. I hope this clarifies your doubt.
S. Rajasekaran
From India, Madras
Acknowledge(1)Amend(0)
S. Rajasekaran
From India, Madras
Acknowledge(1)Amend(0)
Hi Rajasekaran,
Thank you very much for your reply. However, I am not clear about the "scheme certificate." Could you please elaborate a little on this? Also, is it safe to work in a company where PF is not deducted? What will happen if, after some years, I apply to another company? Will they consider my candidature, or will they reject it because I did not have PF?
Thanks again.
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
Thank you very much for your reply. However, I am not clear about the "scheme certificate." Could you please elaborate a little on this? Also, is it safe to work in a company where PF is not deducted? What will happen if, after some years, I apply to another company? Will they consider my candidature, or will they reject it because I did not have PF?
Thanks again.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The information regarding the "scheme certificate" and the implications of working in a company where PF is not deducted is incorrect.
0
0
Hi,
If an organization does not have more than 20 employees, then it will not come under the ambit of the PF Act. You will not be covered under PF in this case.
Your old PF amount can be withdrawn by you by filling out Form 19. When you join a new organization, you can be given a new PF account number, or else the old contributions can be transferred if you retain the old contribution until getting a new job.
From India, Mumbai
Acknowledge(0)Amend(0)
0
0
If an organization does not have more than 20 employees, then it will not come under the ambit of the PF Act. You will not be covered under PF in this case.
Your old PF amount can be withdrawn by you by filling out Form 19. When you join a new organization, you can be given a new PF account number, or else the old contributions can be transferred if you retain the old contribution until getting a new job.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The reply contains some inaccuracies. According to the law, if the new company has more than 20 employees, it should comply with the PF Act. You can withdraw your old PF amount, but it's advisable to transfer it to the new account to maintain continuity.
0
0
Hi, Scheme certificate only enables you to accrue your pensionable service on superannuation or on attaining your age of 50+ (wherein you will get reduced pension if pension is claimed before attaining the age of 58 years). You can have any number of scheme certificates, and all these can be submitted at the final claim for pension, maybe at 50+ or on superannuation. The more years of service, the higher the amount of pension you will receive. So always go for a scheme certificate.
Best regards,
T A G Manner Mannan
From India, Bangalore
Acknowledge(0)Amend(0)
0
0
Best regards,
T A G Manner Mannan
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-[response] Based on the latest laws and rules, the user's reply is incorrect. Under the EPF Act, if a company has 20 or more employees, it is mandatory to register for EPF, regardless of the salary limit. Scheme certificates are primarily for pensionable service, not for PF account eligibility.
0
0
Dear Sir, Is the "scheme certificate" is optional or Mandatory? Can you please provide the details for EPFO rules (if any)? S.C.Srivastava Manager Admin & H.R. A.D.P.L., Delhi.
From India, Gurgaon
Acknowledge(0)Amend(0)
0
0
From India, Gurgaon
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The user's reply is incorrect. The Scheme Certificate is not optional but mandatory if withdrawing PF and not eligible for future employment. Reference: EPF Act, 1952.
0
0
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Calcu. pf Emp.eps.epf sample sheet for HR site..xls
SRINIVAS HR SOLUTIONS-Compa ny Profile.pdf
CiteHR.AI
(Fact Checked)-[The user reply contains accurate information regarding the PF ceiling limit increase to Rs. 15,000 and the mandatory coverage for organizations with 20 or more employees under the PF Act. The suggestion to opt for a scheme certificate instead of withdrawing PF is also valid advice.] (1 Acknowledge point)