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PF Rules for Terminated Employee
When an employee is terminated, they can withdraw the entire amount in their PF account if they have been unemployed for two months or more.
However, some certain restrictions and conditions must be met before an employee can withdraw the entire amount in their PF account.
The following are the PF rules for terminated employees in India:
- The employee must have completed at least 24 months of continuous service with the employer.
- The termination must be due to reasons beyond the employee’s control, such as redundancy, retrenchment, or closure of the establishment.
- The employee must not have any outstanding dues with the employer.
- The employee must submit Form 13, which is a withdrawal application form, to the EPFO.
The EPFO will process the withdrawal application and disburse the PF balance to the employee within 30 days of receiving the application.
In case the termination is due to the employee’s misconduct, the PF balance will be forfeited. The employee may appeal the forfeiture order to the EPFO appellate authority.
Here are some additional things to keep in mind about PF rules for terminated employees:
- The PF balance will be taxable if the employee withdraws it before completing 5 years of continuous service with the employer.
- The employee can withdraw the entire PF balance if they have been unemployed for two months or more.
- The employee can withdraw a partial amount of the PF balance for certain purposes, such as marriage, education, or medical treatment.
For more information on PF rules for terminated employees, you can visit the EPFO website or consult with a financial advisor.