Last Updated on Apr 3, 2020 by James W
PF or Provident Fund is a type of fund which is given to the employees of a company or a government sector for the retired or disabled. You have commonly heard about the term pension which is given to the employees of a company after they got retired. This fund is commonly given by the collaboration of the present employees and employer. Every month employees give out a part of their salary and employers also contribute for this purpose and every month it is given to the retired or disabled employees who cannot work further in the company. PF Transfer is available in different countries which are related to the United States of America and these countries include Pakistan, Malaysia, Mexico, Hong Kong, India and many other similar countries.
In every country there is a limit of age to work in a company as an employee, after this, they have to leave working. For this purpose government sets a plan as an act of kindness in order to help those people financially. There are many few people who turn towards the business and keeps on learning, while others who do not have any job experience prefers to stay at home. So this fund fulfils all the basic necessities of life for those retired or disabled employees. In order to receive this provident fund individuals have to get an account in some government bank where this retirement fund will be transferred directly and individuals can withdraw that money anytime.
In some countries, if an individual is not able to withdraw money themselves or dies before receiving the money then on to their behalf their spouse or children can also withdraw that money. When an individual joins a specific company they have to start a bank account in order to receive this retirement fund, as you all know that there are no fewer jobs especially in the private sector so whenever an individual resigns from the company they receive this PF. As this account is related to the company where you have been working before, so now you have to start another account with respect to the new company and it is better to transfer that provident fund from the old account to the new one.
In the past time, it was a very lengthy process to transfer provident fund from old account to new one. You need to get at least thirteen signatures from the old employer, authority letter which indicates that you are legally allowed to transfer your provident fund. There are different rules for the purpose of withdrawal of provident fund, which are as follows,
- Home Loan
- Medical Treatment
- House Renovation
- Construction of a New Home
And many other reasons, for which there are some rules to transfer provident fund. Like if you want your provident fund for the purpose of the renovation of your home, then you have to show enough proofs which indicate that, the house is registered in your or any of your blood relation’s name. After this, it is necessary that you are working in that specific firm or company for last five years. If you have completed your services in a firm for seven years then you are able to withdraw at least 50% from your provident fund for the purpose of marriage of your children or siblings.
Moreover if any of your siblings, children, or any other blood relation, or even if you yourself requires provident fund then you are able to withdraw at least six times of the total amount of your monthly salary and there is no time limit required for this purpose. Similarly, there are different rules for different purposes.