Provident Fund: No change in EPF Act; Can small firm workers get PF benefit? (2024)

FAQs

What happens to EPF if no contribution? ›

Ans : There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. However, if no contribution is received into a PF account for 3 consecutive years the account shall not earn any interest after 3 years from the stopping of contribution.

The Employees' Provident Fund Organisation (EPFO) rejects the EPF claim when the information in their database does not match the information shared by the EPF member. Any mismatch in the name, date of birth and other details, or even incomplete KYC records can lead to a rejection.

If you are withdrawing PF balance and EPS amount after completing 10 years of service. If your service period is more than 10 years, you cannot withdraw the EPS amount. You can fill the Composite Claim Form along with the Form 10C to get the scheme certificate.

Your EPF membership will continue, as the employer's portion is paid only after age 58. You can however withdraw 90% of your entire EPF amount after the age of 57. As per the norm, the employee contributes 12% of the basic pay plus Dearness Allowance, to the PF account.

Submit a Claim Form

Using your UAN login credentials, access the UAN Member Portal. Go to "Online Services" and then choose "Claim (Form-31, 19 & 10C)". Complete the claim form by entering the necessary information. From the EPFO website, download the applicable EPF withdrawal form.

In fact, when you are relocating, you can withdraw the money immediately. To apply for withdrawal, you need to get an EPF withdrawal form from your employer. You can also download it from the EPFO (Employees' Provident Fund Organisation) portal.

If the EPF claim is rejected, the reason might be incorrect or mismatched information or documents. For example, the contact number, name, residential address, joining date, etc., are some of the information on the documents that might be mismatched.

A claim rejection occurs before the claim is processed and most often results from incorrect data. Conversely, a claim denial applies to a claim that has been processed and found to be unpayable. This may be due to terms of the patient-payer contract or for other reasons that emerge during processing.

Since September 1, 2014, the Government has been providing a minimum pension of ₹1000 per month to pensioners under the Employees' Pension Scheme (EPS), 1995. The EPS, 1995 operates as a 'Defined Contribution-Defined Benefit' Social Security Scheme.

What happens to PF after 3 years? ›

After three years from the last month of contribution made the account will turn 'inoperative'. Funds in an inoperative EPF account will not earn any interest. For instance, if an employee retires on today's date i.e., August 2023, then the EPF account will remain active till August 2026.

No, Provident Fund (PF) accounts do not have a specific expiration date. PF accounts are set up to help employees save for their retirement, and the funds in the account remain available until they are withdrawn, transferred, or used to purchase an annuity at retirement.

Inactive accounts of retired employees do not accrue interest. Interest earned on dormant accounts is taxed at the member's income tax slab rate. Employees do not receive interest on contributions made to the Employees' Pension Scheme. However, after the age of 58, a pension is provided from this amount.

Synopsis. As per the EPF scheme, an employee shall cease to be the member of EPS from the date of attaining 58 years of age or from the date of vesting admissible benefits under the scheme, whichever is earlier.

All employees must contribute until the age of 75 with no minimum age. From the age of 60, only employer contributions are payable. The EPF contribution rates vary according to the employee's age and whether they are a Malaysian/permanent resident.

If action is not taken even seven years after the account becomes inactive, the EPFO classifies it as unclaimed. The money stops earning interest and, if left unattended, gets transferred to the Senior Citizen Welfare Fund.

How long can I keep my money in EPF Malaysia? The EPF body has recently clarified that beneficiaries will continue to earn dividends up to the age of 100 if they have not withdrawn their funds from their Provident Fund account.

But if a person does not contribute for 3 years or more after retirement or permanent migration abroad or in case of death, his/her account is classified as an inoperative account.

To withdraw EPF download Form 19 and get it attested by magistrate/gazetted officer. Next, write a letter to the PF Commissioner about your problems and send the details to the regional EPF office. The application will be processed within two months.