My current employer doesn't deduct PF. But I have a PF account with my earlier employer. I do not want to withdraw the accumulated PF from my previous PF account. How long can I keep this account in an inactive state (By inactive state I mean neither I wish to withdraw nor I wish to transfer, unless I join another organisation where they again start deducting my PF. Will any penalty be imposed or is there any maximum time limit for which I can keep the account inactive.
From India, Bangalore
From India, Bangalore
Now EPFO has removed the concept of inactive / dead account state. Earlier it was of 36 months time period i.e 3 yrs and their after declared as inactive account. Now you keep the accumulated fund with PF authorities until the age of retirement. Once you join another organization and transfer the account ( Can be done online). You will also receive interest every year too as per norm. Their is no penalty imposed for it.
From United Kingdom, London
196From United Kingdom, London
This will also benefit you when you quit this org & join new one that is covered under the act. Even if you draw basic salary of Rs. 15000+ new employer will have to cover you under the act as you remain as PF member.
From India, Mumbai
From India, Mumbai
Dear Srikant Need more details on the new employer covering him if he is above Rs.15000+ in basic. Is there any specific guidelines/section stating that. Please suggest. Regards Vamsi Krishna
From India, Hyderabad
From India, Hyderabad
Vamsi Krishna If member has not withdrawn PF amount & his salary exceeds Rs. 15000, new establishment covered under PF Act has to deduct PF of at least Rs. 1800 per month.
From India, Mumbai
From India, Mumbai
When you fill up PF Form 11 in PF covered establishment you will declare that you were a PF member. That is proof enough for employer to deduct PF of Rs. 1800 even if your salary exceeds Rs 15000.
From India, Mumbai
From India, Mumbai
Dear Shrikant,
Thanks for the update. I was not aware about this condition. I know that if your basic increases 15000 then current employer is liable to deduct pf on 15000 but for previous employment, I was not aware about this. If this clause is mentioned somewhere in notification then could you please share that as it will be helpful for us to prove our point.
Regards,
Manish
From India, Ahmedabad
Thanks for the update. I was not aware about this condition. I know that if your basic increases 15000 then current employer is liable to deduct pf on 15000 but for previous employment, I was not aware about this. If this clause is mentioned somewhere in notification then could you please share that as it will be helpful for us to prove our point.
Regards,
Manish
From India, Ahmedabad
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Employer-PF-res trict to wages of Rs 6500.pdf