An employee can not withdraw his EPF (Employees' Provident Fund) even if he/she is changing jobs, an expert says.

Pankaj Mathpal, of Optima Money Managers, said in a recent interview that an employee could not withdraw the EPF even he/she is changing jobs, rather he/she would have to transfer that EPF account to the next employer.

Clarifying doubts regarding the EPF, Mr. Mathpal said, "Application for transfer is to be submitted in Form 13. It is a revised form, which has to be submitted to your new employer. As far as withdrawal is concerned, you cannot withdraw till you continue with your services."

However he added that a person who has been unemployed for two months from leaving his/her first job, can withdraw EPF.

He added that the new employer would take shoulder the responsibility to submit the new employee's the Form 13 to Provident Fund Commissioner.

The Employees' Provident Fund Organisation's recent decision to calculate and deduct PF on the basis of an employee's gross income rather than his/her basic salary raised many doubts.

An employee who has an EPF account contributes 12 per cent of his salary and gets the same amount contributed to his account by his/her employer. The EPFO's decision to calculate and deduct PF on the basis of an employee's gross income would lead to more savings but it would also decrease employees' take-home salaries.