With the change of job, withdrawing the entire PF of the former company can be a loss-making deal for you.
New Delhi. There is a trend of changing jobs in the private sector in two to three years. But with the change of job, withdrawing the entire PF of the former company can be a loss-making 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 and combine the pf with the old one. Even after retirement, if you do not need money, then you can leave PF for a few years.
Take advantage of Covid-19 Advance Scheme thoughtfully
The Employees’ Provident Fund Organization (EPFO) has once again started the Kovid-19 Advance Scheme. Under this, you can withdraw money from your Provident Fund (PF account) equal to 3 months’ salary. However, the benefit of this scheme should be taken only when there is a great need because withdrawing money from PF fund can cause a big loss to your retirement fund.
Interest accrues for three years
If you do not withdraw PF money even after retirement, then interest continues for three years. It is considered a dormant account only after three years. Most of the people keep PF amount as a future safe fund. Let us tell you that if you have to withdraw money due to some need, then it is very important to have KYC.
If a person remains unemployed for two months, then the entire amount of PF can be withdrawn, whereas 75 percent of the money can be withdrawn after one month of leaving the job. If the service period is less than ten years, then the entire pension amount can also be withdrawn. Generally, the entire PF amount can be withdrawn only after retirement.
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