As mentioned in E.P.F passbook, there are two amounts, 1. Employee Share 2. Employer Share, so at the time of P.F. withdraw, what amount should be claimed? Employee share or Employer share or both are payable? Also share your valuable knowledge regarding the Gratuity amount like how and when to apply to withdraw this amount?
From India, Delhi
21From India, Delhi
Hi Richa,
When a employee can apply for his final EPF withdrawal , he is eligible for claim both Employee and employer share.
For gratuity: According to the law, an organization has to pay gratuity to an employee who has served it continuously for at least 5 years. For each year of service, the organization has to pay an amount equaling 15 days of last drawn salary. Salary here means basic salary plus dearness allowance plus commission, if commission is a fixed percentage of sales. Moreover, if a person works for over 6 months in the last year of service, it will be considered as a complete year for gratuity calculation. For instance, if a person completes 7 years and 6 months of continuous service, gratuity paid will be for 8 years.
For gratuity calculations, a month of work is calculated as 26 days. So the 15-day salary will be calculated as (monthly salary*15)/26. This number multiplied by the number of years in service will be the gratuity amount payable.
From India, Mohali
When a employee can apply for his final EPF withdrawal , he is eligible for claim both Employee and employer share.
For gratuity: According to the law, an organization has to pay gratuity to an employee who has served it continuously for at least 5 years. For each year of service, the organization has to pay an amount equaling 15 days of last drawn salary. Salary here means basic salary plus dearness allowance plus commission, if commission is a fixed percentage of sales. Moreover, if a person works for over 6 months in the last year of service, it will be considered as a complete year for gratuity calculation. For instance, if a person completes 7 years and 6 months of continuous service, gratuity paid will be for 8 years.
For gratuity calculations, a month of work is calculated as 26 days. So the 15-day salary will be calculated as (monthly salary*15)/26. This number multiplied by the number of years in service will be the gratuity amount payable.
From India, Mohali
Dear Pradeep, I had applied for P.F. amount of my last organization. I got the amount credited within 5 days. But,I got only employee share amount. What shall I do to claim employer share amount?
From India, Delhi
From India, Delhi
Hi Richa , You can receive payment in two installment from EPFO department, one is against form-19 and second is against form-10c so wait for some days maybe you can receive second installment.
From India, Mohali
From India, Mohali
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TAXABILITY ON EPF WITHDRAWAL.docx
Introduction Of One Employee One EPF Account Facility.pdf