What is Withdrawal Benefit?
Definition of Withdrawal Benefit
Withdrawal benefit is payable to the employee in case of early retirement, termination or any other reason due to which the employee has left the employer. The employer as well the employee contributes in retirement plan. While leaving the organization, employee has a right to withdraw the amount of his/her own contributions as well as employers’ contribution if he/she is vested.
Explanation of Withdrawal Benefit
If an employee is leaving an organization because of early retirement, resignation or termination then he/she has withdrawal benefit which is based on the span of constant membership in SSS. Usually the amount is payable if the employee is leaving an organization before the age of 55. It is the amount that comprises of the personal contribution of an employee plus the interest applied at the Fund Earning Rate. Also, 2.5% of an employee’s contributions and annual interest of an employee’s scheme membership.
Withdrawal benefit, the below listed forms and documents are to be filled by the employer on behalf of an employee.
- Application for Withdrawal Benefit Form. After filling the form it must be signed by an employee in the presence of human resource official of the organization.
- Copy of the Identity Document.
- Bank Order form signed by an employee
- Certificate of Service from the Employer.