There is generally a 2 month waiting period after resignation after which you can opt to withdraw your PF money. In the case of not taking the next job in India, you can withdraw the EPF account balance after immediately resignation.
You cannot apply for withdrawal of EPF account balance immediately after your resignation from a company. If you chose to withdraw your money in the PF account before completion of 5 years, you will liable to pay tax on the amount. Also, as on December 2015, you cannot withdraw your PF money through any online facility in that you will have to meet your ex-employer. However, the Employees' Provident Fund Organization (EPFO) is set to launch an online facility for provident fund withdrawal by March 2016 since the Supreme Court extended Aadhaar card usage for government schemes. If the facility takes off, running from pillar to post for withdrawal of provident fund will soon be a thing of the past. What’s more, PF claims are likely to be ‘settled’ under three hours following receipt of an application after launch of the online facility. Your Unique Account Numbers (UANs) will be seeded with your Aadhaar numbers for the online facility. It is common knowledge that with the introduction of UAN (Universal Account Number), the EPF transfer has become more transparent. About 1.99 crore have activated their UANs as on October 16th, 2015.
PF money after Resignation
Complete Provident Fund (PF) money can be withdrawn when an individual retires from employment and remains unemployed for more than 2 months. The gazetted officer must certify that the individual is unemployed for more than 2 months for him/her to receive the PF money. In case an employee tries to withdraw the money without remaining unemployed for more than 2 months, it is against the law and hence, it is considered to be illegal.
As per the EPF Act, individuals must retire once they reach 58 years of age to claim the final settlement of PF. Individuals will receive their contribution and the employer’s contribution made towards EPF along with the interest that has been generated. Depending on the number of years of service, the employee is also eligible to get the pension amount that has been made towards the Employees’ Pension Scheme (EPS).
In case the employee is leaving India and settling permanently abroad, complete PF withdrawal is allowed. Withdrawal is also allowed if the employee gets a job abroad.
Members of the Employees Provident Fund Organisation (EPFO) can also withdraw the entire amount in case of total or permanent disability to work due to mental or bodily injuries. However, a medical practitioner must give a certificate regarding the same. If individuals have been suffering from leprosy or tuberculosis and have still not received their PF money, they are eligible to receive the entire PF amount.
It is important to note that there is a 2-month waiting period, following which you can opt for withdrawal of your PF money after resignation. The two-month waiting period is aimed at saving your retirement corpus. However, if you are in need of money and not joining a job in India, you may withdraw your PF account balance after resignation. You would do well to take note of the following points
- If you plan to go abroad and do not wish to return any time soon, you can apply for the immediate withdrawal of your PF balance
- If you are employed in a foreign country, you can apply for withdrawal of your provident fund account after resignation
You have to submit the necessary proof such as copies of your visa and appointment letter to avail of the aforementioned concession. Secondly, a female employee can choose to withdraw money if she intends to resign to get married. Intriguingly, not many are aware of this factor. However, this waiver finds clear mention in section 69 para-2 of the EPF scheme document. The girl, must however, submit a proof of her marriage such as a wedding card. Women who wish to leave a city or country after getting married can avail of this provision.
You have a zillion things on your mind after you put in your papers. Your provident fund account, more often than not, may not be your number one priority. All the same, you cannot keep putting off withdrawing your money in the account.
- Is there any age restriction in order to become a member of the EPF?
- Is it possible for an apprentice to become an EPF member?
- Is it possible for employees to remain EPF members even after retirement?
- If the employee is still working, can he/she stop their membership?
- How is the amount of PF contribution determined if the employee is given daily wages?
- If there is any outstanding amount owed to the employer by the employee, can the employer recover it from the PF amount?
- Are there any actions taken if the employer does not make PF contributions?
No, there is no age restriction to become a member of the EPF. However, if the member reaches the age of 58 years, he/she cannot join the Pension Fund.
No, it is not possible for an apprentice to become an EPF member. But when they stop being an apprentice, they must be enrolled to become an EPF member.
If individuals reach the superannuation age and continue to work, they can remain EPF members.
No, it is not possible for employees to stop their membership.
The amount of the money the employee earns in a calendar month is considered to decide the rate of contribution towards PF.
No, the employer cannot recover any outstanding amount owed to them from the PF contribution.
Prosecution under Section 14 of the EPF & MP Act, 1952, Action under Section 110 of the Criminal Procedure Code and Section 406/409 of Indian Penal Code, Arrest and Detention of the employer, Attachment and sale of properties, realisation of the dues from debtors, and attachment of bank accounts are some of the actions that can be taken against employers if PF contribution is not made.