EPFO- If employees leave the job or they are fired due to any reason, you can still leave your PF for a few years.
New Delhi. After leaving the job, withdrawing the full amount of PF account can be a loss deal for you. Due to this, the huge fund and savings being created for your future ends. Also, there is no continuity of pension. It would be better to join the new company or merge it with the old one. Even after retirement, if you do not need money, then you can leave PF for a few years.
Let us know what happens to your PF account and the amount deposited in it after leaving the job.
Interest is available on PF even after leaving the job
According to experts, even if the employees leave the job or they are fired for some reason, you can still leave your PF for a few years. If you do not need PF money then do not withdraw it immediately. Even after leaving the job, interest on PF keeps on getting and it can be transferred to the new company as soon as new employment is available. PF can be merged in the new company.
The company provides this facility for three years
Explain that PF account interest is available for 36 months i.e. 3 years after leaving the job. Here it is important to know that for the first 36 months, if there was no contribution for the first 36 months, the PF account of the employee was put in the category of Inoperative Account. In such a situation, you have to withdraw some amount before three years to keep your account active.
Interest earned on PF amount is taxable
According to the rules, the PF account does not become inactive if the contribution is not made, but the interest earned during this period is taxed. If the claim is not made even after the PF account is inactive, then the amount goes to the Senior Citizens Welfare Fund (SCWF).