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.