AUTOMATIC TRANSFER OF EPFO ACCOUNTS ON JOB CHANGE - SOONER GOING TO BE ACTIVE
Soon, we will not have to worry about transferring or merging our Employees’ Provident Fund (EPF) account on job change. This is because the Employees’ Provident Fund Organisation (EPFO) has approved the development of centralised IT-enabled systems by C-DAC. This centralised system will facilitate the de-duplication and merger of all PF accounts of members. It will remove the requirement of transfer of EPF account whenever a member changes jobs.
This decision was approved in a meeting of the Central Board of Trustees (CBT) held on November 20, 2021.
Currently, as per the EPF rules, once a member changes his/her job, a new EPF account is opened with the new company. The employee is required to transfer the money held in the EPF account with the previous employer to his/her new employer. This can be done online on the Member Sewa portal, provided Universal Account Number (UAN) is linked with Aadhaar. If UAN is not linked with Aadhaar, then the employee will have to do this offline by submitting a form to the new employer.
Prashant Singh, Vice President and Business Head of CPO- Teamlease services says, “So far employees had been undergoing nightmare to transfer their PF from earlier employer to the new one. Paperwork, timelines and back and forth led to confusion and delay in the entire process. With this new initiative, it would ease the way to transfer the PF from earlier employer to new employer seamlessly. The employee just needs to ensure that his/her UAN is linked to Aadhaar. If not linked a small manual/offline form submission can be given to new employer to establish that. This is another big relief for employee and employer as this is used to consume huge amount of time between both of them to process and transfer...
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