Introduction
Provident Fund (PF) is a retirement savings scheme that is offered by the Indian government to its employees. It is a long-term investment that helps employees save for their retirement. The PF withdrawal before 6 months and PF eligibility period are two important aspects of the scheme that need to be understood. The PF withdrawal before 6 months is allowed only in certain circumstances, such as medical emergencies, marriage, and education. The PF eligibility period is the minimum period of service that an employee must have completed in order to be eligible for the PF scheme. This article will provide an overview of the PF withdrawal before 6 months and PF eligibility period.
PF Withdrawal Before 6 Months & PF Eligibility Period
The Employees’ Provident Fund Organisation (EPFO) allows members to withdraw their provident fund (PF) balance before completion of 6 months of service. However, the withdrawal is subject to certain conditions.
The EPFO allows members to withdraw their PF balance before completion of 6 months of service if they are unemployed for more than a month. The withdrawal is subject to the following conditions:
1. The member must have completed at least 3 months of continuous service.
2. The member must have contributed to the EPF for at least 3 months.
3. The member must have submitted a claim form along with the required documents.
4. The member must have submitted a declaration that he/she is unemployed for more than a month.
5. The member must have submitted a declaration that he/she has no other source of income.
6. The member must have submitted a declaration that he/she has no other savings or investments.
7. The member must have submitted a declaration that he/she has no other liabilities.
The EPFO also allows members to withdraw their PF balance before completion of 6 months of service if they are facing financial hardship. The withdrawal is subject to the following conditions:
1. The member must have completed at least 3 months of continuous service.
2. The member must have contributed to the EPF for at least 3 months.
3. The member must have submitted a claim form along with the required documents.
4. The member must have submitted a declaration that he/she is facing financial hardship.
5. The member must have submitted a declaration that he/she has no other source of income.
6. The member must have submitted a declaration that he/she has no other savings or investments.
7. The member must have submitted a declaration that he/she has no other liabilities.
The EPFO also allows members to withdraw their PF balance before completion of 6 months of service if they are suffering from a serious illness or injury. The withdrawal is subject to the following conditions:
1. The member must have completed at least 3 months of continuous service.
2. The member must have contributed to the EPF for at least 3 months.
3. The member must have submitted a claim form along with the required documents.
4. The member must have submitted a declaration that he/she is suffering from a serious illness or injury.
5. The member must have submitted a medical certificate from a registered medical practitioner.
6. The member must have submitted a declaration that he/she has no other source of income.
7. The member must have submitted a declaration that he/she has no other savings or investments.
8. The member must have submitted a declaration that he/she has no other liabilities.
The EPFO also allows members to withdraw their PF balance before completion of 6 months of service if they are facing any other emergency. The withdrawal is subject to the following conditions:
1. The member must have completed at least 3 months of continuous service.
2. The member must have contributed to the EPF for at least 3 months.
3. The member must have submitted a claim form along with the required documents.
4. The member must have submitted a declaration that he/she is facing an emergency.
5. The member must have submitted a declaration that he/she has no other source of income.
6. The member must have submitted a declaration that he/she has no other savings or investments.
7. The member must have submitted a declaration that he/she has no other liabilities.
The EPFO has set a minimum eligibility period of 6 months for withdrawal of PF balance. This means that a member must have completed at least 6 months of continuous service before he/she can withdraw his/her PF balance.
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Every day there are so many employees joining in new jobs and some leave their jobs within 6 months due to several reasons. But when they are employed on regular basis then will contribute to employee provident fund from their first day of joining onwards. Before knowing what happens when we do PF withdrawal before 6 months we should know how our PF money will be contributed to EPF account. As we all know every employee whose monthly basic salary is less than 15000 will contribute to PF.
But EPF account consists 2 parts one is PF and another one is a pension. The entire contribution of the employee will be deposited into the PF account but the employer contribution will be deposited into the both PF and pension accounts of the employee.
- 12% of employee basic salary will go to the PF account of the employee
- 3.67% of employer contribution will also go to the PF account of the employee.
- Remaining 8.33% will go to the pension account of the employee.
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What Happens If You Do PF Withdrawal Before 6 Months
The minimum PF eligibility period to withdraw both PF contribution and Pension contributions of an employee is 6 months. So when an employee resigns or leaves an organization before 6 months then he can’t able to withdraw pension amount i.e 8.33% of employer contribution. But he can withdraw his PF contribution and employer PF contribution even before 6 months.
The employee has complete right to withdraw PF amount even for the Single working day also, but in order to withdraw Pension amount, he must complete 6 months service.
So What To Do Instead Of Doing PF Withdrawal Before 6 Months?
Instead of withdrawing PF amount before Six months they can transfer their PF amount from old PF number to new PF number. At present the automatic PF transfer was enabled, so whenever an employee joins in the new organization and continues his old UAN number then his PF and pension amounts will transfer automatically to new PF account number.
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PF Withdrawal Before 6 Months & PF Eligibility Period
Employees Provident Fund (EPF) is a retirement savings scheme that is managed by the Employees Provident Fund Organisation (EPFO). It is a mandatory contribution from both the employer and the employee. The EPF is a long-term savings plan that helps employees save for their retirement. The EPF also provides financial security to employees in case of any unforeseen circumstances.
The EPF has a minimum eligibility period of 6 months before an employee can withdraw their funds. This means that an employee must have been contributing to the EPF for at least 6 months before they can withdraw their funds. This is to ensure that the employee has enough time to build up their savings and to ensure that the funds are used for their retirement.
The EPF also has a maximum eligibility period of 5 years. This means that an employee can only withdraw their funds after 5 years of continuous contribution to the EPF. This is to ensure that the employee has enough time to build up their savings and to ensure that the funds are used for their retirement.
The EPF also has a provision for early withdrawal of funds. This means that an employee can withdraw their funds before the 6-month eligibility period if they meet certain conditions. These conditions include:
- The employee must have been contributing to the EPF for at least 3 months.
- The employee must be facing financial hardship due to medical reasons, unemployment, or any other unforeseen circumstances.
- The employee must submit a written application to the EPFO.
- The employee must provide proof of the financial hardship.
The EPF also has a provision for partial withdrawal of funds. This means that an employee can withdraw a portion of their funds before the 5-year eligibility period if they meet certain conditions. These conditions include:
- The employee must have been contributing to the EPF for at least 3 months.
- The employee must be facing financial hardship due to medical reasons, unemployment, or any other unforeseen circumstances.
- The employee must submit a written application to the EPFO.
- The employee must provide proof of the financial hardship.
- The employee must provide proof of the amount of funds they wish to withdraw.
The EPF is a great way to save for retirement and provides financial security to employees in case of any unforeseen circumstances. It is important to understand the eligibility period and the provisions for early and partial withdrawal of funds before making any decisions.
