Alert for EPFO Members! Never take money out of your PF after moving jobs; you'll get interest for up to three years

 Alert for EPFO Members! Never take money out of your PF after moving jobs; you'll get interest for up to three years

EPFO Members Take Notice: You may still withdraw from your PF for a few years if an employee quits or is dismissed for whatever reason.

Delhi, New. Withdrawing the whole balance from your PF account after quitting your employment may result in a loss for you. As a result, a sizable fund and savings are being established for your future. Furthermore, there is no pension continuity. Either joining the new business or merging it with the existing one would be preferable. You may abandon PF for a few years if you do not need money even after retirement.

After quitting your work, let us know what happens to your PF account and the money paid into it.

Interest is accessible on PF even when employment ends.

Experts state that you may leave your PF for a few years even if an employee quits or is dismissed for whatever reason. Don't take out your PF money right away if you don't need it. Interest on PF accrues even after leaving a job, and it may be transferred to a new employer as soon as a position becomes available. PF and the new business may combine.

The business offers this space for a period of three years.

Tell them that interest on their PF account is accessible for 36 months, or three years, after they leave their work. It is noteworthy to mention that in the event that no contributions were made within the first 36 months, the employee's PF account was classified as an Inoperative Account. To keep your account operational in such a scenario, you must take out a portion of the balance before three years have passed.

Taxes apply to interest generated on the PF amount.

The regulations provide that if a contribution is not made, the PF account remains open; nevertheless, the interest accumulated during this time is subject to taxation. The money is donated to the Senior Citizens Welfare Fund (SCWF) if the claim is not filed, even after the PF account has become dormant.