Looking to close the PF account upon resignation in 2023? This can be a daunting task without the right information and guidance.
A Provident Fund (PF) is a government-sponsored retirement savings scheme. Employees contribute a fixed percentage of their salary towards PF and their employers match the same amount. It helps in providing a financial cushion in retirement, or in times of emergency.
EPF subscribers can conduct a PF balance check and withdraw from their accounts when changing employers, even though this defeats the purpose of adding to a retirement fund.
Unless in immediate need of money, such as joblessness or a financial emergency, it is best to keep this money saved. Keeping these contributions in the account helps to create a larger fund over time.
For those who still choose to withdraw, the following sections provide details on the process.
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Mandatory Requirements for Settling a PF Account
For a successful withdrawal process, the following conditions must be satisfied.
- Employee and Employer contributions should be current in terms of the latter’s regular payments. To find out the amount and employer contributions, one can perform a PF balance check.
- To minimize problems when the subscriber withdraws, personal information should be up to date.
- The employee must submit the claim form at least two months after their last day of employment.
- Additional terms disclosed by the employer before the employee’s departure from the organization or at the time of PF withdrawal.
Documents Required To Avail PF Amount After Leaving Job
The employee is required to submit a few documents to avail of their PF money. These documents are:
- UAN (Universal Account Number) if it was issued by the employer. Also, the employee’s official date of joining and leaving the organization, as noted by the regional PF authorities.
- Form 19.
- Details of the employee’s bank account are needed for EFT (Electronic Funds Transfer). These include the account number, IFSC, branch name, and a crossed cheque for reference.
Entire Process of Final Settlement of PF
Before applying, perform a PF balance check just to make sure the correct amount is transferred. Here’s a step-by-step guide to the EPF Withdrawal Process:
Step 1: The employee should visit their previous employer’s payroll or HR department at least two months after the last day of work. They should ensure to bring a checkbook along with the KYC documents attached for submitting a crossed check.
Step 2: The representative will provide Form 19. They will give guidance on how to complete the form. Once done filling out the required sections of the form, one must sign and submit it.
Step 3: The applicant must make sure to check and validate the information, as the EPF authorities may reject the application if it contains even the slightest mistake.
Step 4: Once it is completed, the HR department will attest the form and forward it to the regional EPF authorities. It can be either directly or through authorized agents.
Step 5: The employer will keep informing about the progress of the submitted application via email or phone call. If there is no update, follow up with them and seek an update.
Step 6: If the form is rejected, it will be sent back to the employer. They will ask for it to be resubmitted or for necessary corrections to be made.
How to Perform a PF Balance Check?
Before withdrawing money from a provident fund account, one can conduct a PF balance check. This helps to monitor the progress and keep track of withdrawals. PF balance checks can be easily conducted online and offline. There is no need to submit any documents for the PF balance check. Anyone can simply log onto the EPFO portal or call or message their EPFO account holder.
After the requisite forms and paperwork has been submitted, it usually takes about a month for the regional PF office to process and transfer the funds to the respective bank account.
Thanks to the advanced tech and streamlined processing, one can expect the money to be deposited into their bank account within 10 days.
If employees do not see the money in their account within the specified time, they can go to epfindia.com to get an update on the status of the transfer.
Additionally, people can reach out to their employer to inquire about any changes regarding the payment.
Common Reasons for PF Rejections
PF form 19 is often rejected due to:
- Mismatched signatures
- Duplicate applications
- Incorrect bank details
- Failure to meet the credit score requirements
It’s important to double-check all account credentials and make sure the signature on the form is the same as that used when opening the PF account.
Submitting multiple forms can also result in rejection, so only one should be filed at a time.
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Resigning from a job can be a stressful process, particularly when it comes to settling one’s provident fund (PF) account. With the right knowledge, however, the process can be made easier.
Performing a PF balance check and initiating the claim is quite straightforward as long as the employee remains vigilant with the procedures. With this guide in hand, employees will be able to settle their PF Accounts with ease and peace of mind.