Can I Withdraw My Pension Contributions in PF Account: While Working? Before 10 Yrs? After 10 Yrs?
Withdrawing the pension amount from the PF account depends on 3 cases, 1. While working 2. After resigning the job but service is below 10 yrs 3. After resigning, but service is above 10 yrs.
Let’s see each case one by one.
1. Can I Withdraw My Pension Contributions in PF Account While Working
No, you can’t withdraw a pension amount from your PF account while working in a job. While working you can apply for only PF advance and that amount will be given from your PF account, not from your pension account.
What is PF account & pension account
PF account is generally two parts, it includes two parts PF part and pension part. But in general language we will call together as a PF account.
Every month 12% of employee basic wage + DA will go to the employee PF account, employers will also pay another 12 %.
But in employer 12% contribution only 3.67% will go to the PF account of the employee and a balance 8.33% amount will go to the employee pension account.
You cannot withdraw this 8.33% pension contribution from your PF account.
|PF Account||Pension Account|
2. Can I Withdraw Pension Contribution in PF Before 10 years ( After leaving job only)
(Before answering this question, you should know one thing that in PF pension 9 years 6 months will be considered as 10 years service.
So even though you work only for 9.6 months still it be round figured to 10 years)
Yes, you can withdraw pension contributions if your service is below 10 years. (i.e below 9.6 months of total service).
Whenever you resign to a job then you can apply for pension withdrawal by submitting form 10C online on UAN member portal.
If you have worked in multiple companies, then first transfer all those PF and pension amounts to your latest PF account, and apply for pension after transfer only.
Note: While transferring PF, your new passbook will not show transferred pension amount, but still it is present in your new PF account, you can withdraw it without any problem.
For more details read: PF transferred but pension amount not transferred why ?
3. Pension Withdrawal in PF Account After 10 Years of Service
If your total service reaches 10 years (remember even 9 yrs 6 months will be round figured to 10 yrs), then you cannot withdraw pension amount by submitting form 10C.
You can withdraw that amount after 58 years of your age as a monthly pension. So up to 58 yrs of your age you can continue your contribution towards your PF pension account.
Your monthly pension amount will be calculated by using this formula.
Monthly Pension = [ (Last 5 yrs Average basic + DA) x No of yrs of service] / 70
To withdraw this monthly pension amount you need to submit a form called form 10 D. Now you can submit the monthly pension withdrawal form 10D online also at the UAN member portal.
After submitting this form you will receive your monthly pension.
If an EPF member dies, then the nominee such as wife or minor children will receive the monthly pension.