When leaving a job, one of the questions many people wonder about is, “What do I do with my Provident Fund (PVD) savings?” In this article, we outline key options for managing this lump sum to help you make a thoughtful and cost-effective decision, along with pros and cons to help you make a confident decision.
Option 1: Keep the money in the original provident fund.
You can choose to keep your contributions in your previous company’s provident fund even after leaving your job, as detailed below:
- Still receiving continuous returns from investments
- Able to switch investment plans
- No employer contributions
- There is an annual fee: generally around 500 baht per year (depending on the fund management company’s policy).
Suitable for those who are not sure whether to change jobs immediately or do not have a definite short-term plan.
Option 2: Transfer to the new company’s provident fund.
If you start a new job with an organization that has a provident fund, you can choose to transfer your money from the old fund to the new fund, with the following details:
- No Fees or Taxes: Fund transfers are not considered income, so there are no taxes or fees.
- No need to start collecting again
- Increase your chances of long-term returns
- It is recommended to transfer after the probation period: to avoid problems in case of not being hired as a permanent employee.
- The money continues to be invested without interruption.
Transfer Procedure
- Contact the original fund management company to request a balance sheet and transfer form.
- Submit the form to the new company’s HR along with supporting documents.
This option is suitable for those who want to manage a centralized fund and plan to stay in their new job for a long time.
Option 3: Resign from the Provident Fund
You can withdraw all of your money from the fund, but you will be taxed if you do not meet certain exemption criteria, such as being under 55 years old or working for less than 5 years.
- Get a lump sum payment immediately
- Suitable for those who need to use money in the short term.
- Lost investment opportunities and future tax deductions
This should be considered carefully as it could have long-term negative effects on your retirement plans.
Option 4: Transfer money into the RMF for PVD mutual fund.
This option is suitable for those who want long-term tax-free investment by transferring money from PVD to RMF for PVD.
- No transfer tax
- Continuous investment until age 55 and above
- Choose your own investment policy according to your risk level.
- Receive continuous tax benefits according to RMF criteria.
Suitable for those who have long-term retirement goals and do not want to withdraw money immediately.
💡 Compare the pros and cons.
Summary from COACH HCM
Transferring or retaining funds in your provident fund should be considered based on the stability of your new job, your personal financial plan, and your long-term retirement goals. If your organization needs an HR COACH Payroll system that can manage your provident fund benefits comprehensively, COACH HCM is ready to help manage everything from finances, benefits, and the resignation process.