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Friday, 16 July 2021

Even after leaving the job, your PF money continues to earn interest for 3 years, know the rule

 Even after leaving the job, your PF money continues to earn interest for 3 years, know the rule

Even after leaving the job, your PF money continues to earn interest for 3 years, know the rule


    Interest is earned on PF account for 36 months i.e. 3 years after leaving the job

    Merge PF with old account after joining new company


People always withdraw all their money from their Employees Provident Fund (EPF) after leaving the job. But did you know that withdrawing all the money from the PF account can hurt you? It replenishes the funds and savings created for your future. As well as the pension is also closed. So merge the PF with the old account after joining the new company. Even after retirement, if you don't need money, let PF stay for a few years. At present, EPF is earning 8.5 per cent interest.


Find out what happens to your PF account and the amount deposited in it after leaving the job.


Interest is earned on PF account even after leaving the job

According to experts, even if an employee leaves the job or is fired for any reason, you can keep your PF for a few years. If you don't need PF money, don't withdraw it immediately. The PF continues to earn interest even after leaving the job and can be transferred to a new company as soon as the new job is found. PF can be merged into a new company.


The company offers this facility for three years

Interest is earned on PF account for 36 months i.e. 3 years after leaving the job. Here you need to know that the employee's PF account is placed in the category of inactive account if no contribution is made for the first 36 months. In such a case, to keep your account active, you have to withdraw a certain amount three years in advance.


Under the current rules, if an employee retires at the age of 55 and does not apply for withdrawal within 36 months, his account will be deactivated. Simply put, after leaving the company, the PF account continues to earn interest. And it doesn’t stay dormant until the age of 55.

read in gujrati

Interest on PF amount is taxable

As per the rules, PF account is not inactivated on non-contribution, but interest earned in the meantime is taxable. If the PF account is not claimed even after it has become inactive, the amount goes to the Senior Citizen Welfare Fund.

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