Have you resigned to your job and in a dilemma to make a decision on PF transfer and PF withdrawal, then here you can find complete details on PF transfer or withdrawal which is better. Majority of the employees want to withdraw their PF amount when they left their jobs. Employees are eligible to withdraw their PF amount only after Two months from their last working date.
As we all know employee provident fund scheme is one of the best social security schemes after retirement. Employees will get monthly pension amount along with provident fund amount after 58 years. The main aim of this scheme is also to give security to the employees at their retirement time.
PF Transfer Or Withdrawal Which Is Better
Withdrawing PF amount is not always good practice, if an employee just wants to change his or her job then it is better to transfer PF amount. If an employee don’ t want to continue his further career as an employee & wants to start own business then they can apply for PF withdrawal. But in some rare cases like financial emergency and long gap after leaving job then employees may apply for PF withdrawal.
Note: Employee can’t able to withdraw their Pension amount after 10 years of contribution, this amount will be given as a pension to the employee after attaining an age of 58 years. After 10 years EPF member can get scheme certificate, which will be used to get the pension at the age of 58 years.
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Benefits Of EPF Transfer
Finally, if you are thinking in between PF transfer or withdrawal which is better then PF transfer is always the best option. Here are some benefits of EPF transfer.
- The employees are able to get interest on their PF amount, which is tax exempted.
- Under employee pension scheme 1995 after 10 years of contribution employee will get life long pension.
- Under EDLI scheme 1971 the survivor of a deceased member will get an insurance benefit up to 6 lakhs.
- Employees can avail various loans like home, education, illness, education, marriage etc.
Do share your opinions and doubts on PF transfer or withdrawal which is better.