Can I still claim my provident fund if my job is terminated?


Question:

If I have worked for 5 and a half years and contributed towards a provident fund, and my job was to be terminated/I'm dismissed, can I still claim my provident fund? Please advise further, very urgent.

Answer:

Fathima,

The money in your provident fund, as reflected on your latest benefit statement, belongs to you (even if your employer made all the contributions). It does not matter whether you are resigning, or you are retrenched or dismissed, this money is yours, and you can cash it in or transfer it to another fund. If you transfer it to another fund, no tax is due, but if you cash it in, it will be taxed per the withdrawal lump sum tax table. The first R22 500 is paid out tax free.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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