Pension contribution withdraw terms & conditions

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1.How many month/years can be gap (without any job) between two companies to be eligible to withdraw the Pension contribution?

Note:- Suppose a person have completed 10 or more year in a service in multiple companies.

2. During no job period, Is there any way to keep activate the PF account / PF membership?

 

 

Replies (1)

You can lodge request for withdrawal of PF balance only after 2 months of leaving previous job.

There must be 5 continous years of service to enjoy tax exemptions.There is no restriction on withdrawal from PF if you are closing you PF account. But if you want to maintain the account then there are following restrictions

partial withdrawal is allowed in certain cases, which is in the form of loan, where one has to pay back that amount later and before that, has to state the reason for opting for withdrawal, for example, self or daughter's marriage, buying a home, education of self or children, medical treatment for self or family, among others.

In case of education or marriage, for instance, the employee should have completed at least 7 years of employment or service. The maximum aggregate withdrawal can't exceed 50 per cent of the total contributions made by you and withdrawal can be made only thrice during a person's total service tenure. Proof of education or wedding is also required to be submitted.

Likewise withdrawal is permitted for medical treatment of self, spouse, parents and children. In this case, however, there is no restriction regarding the number of years of service. But the maximum amount one can withdraw is six times the basic salary and proof of hospitalization is required.

If there is no contribution to your account for 3 years , then it will become inactive and no interest will be paid.

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