Employees who are facing layoffs or salary cuts in the coronary period are also considering withdrawing the entire money of PF. Many times, private sector employees withdraw fast PF full money even on changing jobs, but withdrawing all the money of former company’s PF along with changing jobs is a loss deal. This not only ends the savings being made for a good future, as well as the continuation of the pension scheme. Actually, even after leaving the job, the interest on the PF continues. If you do not need the money, you can leave the PF account for a few years.
Do not remove PF immediately
Experts say that it is prudent to leave PF immediately even if employees leave the job or even if they are fired for any reason, unless you desperately need it. In fact, even after leaving the job, the interest on the PF continues and the new employment can be transferred to a new company.
If you start a job a few months after leaving one job and transfer the entire PF amount of the old company to the new one, it will be considered as continuation of service. In such a situation the pension scheme will not be interrupted. Under the provision of continuity in service, it is necessary to contribute equal to avail facilities.
Get interest for 3 years
If you do not withdraw PF money even after retirement, then interest continues for three years. It is considered a passive account only after three years. According to Bhatia, most people collect PF amount as a future safe fund and being tax-free, it is a good investment option. In such a situation, it is sensible to run for maximum time.
PF withdrawal rules
– If you have to withdraw money due to any need, then having KYC is very important.
– If a person remains unemployed for two months, then he can withdraw the entire money of PF, while 75% of the money can be withdrawn after one month of leaving the job.
– If the tenure is less than ten years, then even full pension money can be withdrawn.
Generally, the entire PF money can be withdrawn only after attaining the age of 58 years.
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