The Employees’ Provident Fund Organisation (EPFO) has introduced a new rule to simplify the process of transferring Provident Fund (PF) accounts when switching jobs. Previously, employees needed verification from their new employer to transfer their PF accounts, leading to delays and administrative hassles.
Now, under the updated rule, employees can transfer their PF accounts online without requiring employer verification, provided their UAN (Universal Account Number) is linked with Aadhaar and other details match.
Who Can Benefit From EPFO’s New PF Transfer Rule?
The new rule provides relief to specific groups of employees:
- UAN Allotted On or After October 1, 2017:
- If an employee’s UAN is linked to multiple Member IDs and Aadhaar, all accounts will be treated as one in the system, allowing seamless transfers.
- UAN Issued Before October 1, 2017:
- Transfers are allowed within the same UAN, provided the UAN is Aadhaar-linked and the personal details (name, date of birth, etc.) match.
- Multiple UANs Linked to Aadhaar:
- If multiple UANs are linked to a single Aadhaar, they will be merged, enabling smooth PF account transfers.
- Unique Transfers Between UANs Issued Before October 1, 2017:
- Transfers between different UANs are possible if both are linked to Aadhaar and all personal details match.
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How Does the PF Account Work?
A PF account is a savings scheme managed by EPFO where both the employee and employer contribute to build a financial cushion for retirement.
- Employee Contribution: 12% of the employee’s salary is deposited in the PF account.
- Employer Contribution: The employer also contributes 12%, of which 8.33% is deposited into the pension fund.
This scheme ensures long-term financial security for employees in the private sector.
What Are the Steps to Transfer Your PF Account Online?
To take advantage of the new rule, employees need to:
- Ensure UAN is Aadhaar-Linked:
- Visit the EPFO Portal and check if your UAN is linked to Aadhaar.
- Update any incorrect details such as name, date of birth, or gender.
- Initiate PF Transfer Online:
- Log in to the EPFO portal.
- Submit a claim for PF transfer through the “One Member – One EPF Account” facility.
- Complete Verification:
- Ensure your personal details in the Member ID and Aadhaar match to avoid delays.
- Receive Transfer Confirmation:
- Once the application is processed, the PF balance will be transferred to your new account.
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Why Is This Change Important?
The new rule is a major step toward reducing bureaucracy and streamlining processes for employees. Here’s why it matters:
- Faster Transfers: Eliminates delays caused by employer verification.
- Transparency and Accountability: Employees gain more control over their PF accounts.
- Digital Convenience: The process is fully online, making it accessible and hassle-free.
- Financial Continuity: Ensures uninterrupted credit balance when switching jobs.
FAQs
What is the new rule for PF account transfers?
EPFO’s new rule allows employees to transfer their PF accounts online without requiring verification from their new employer.
Who is eligible for seamless PF transfers?
Employees with UANs linked to Aadhaar and matching personal details are eligible for seamless transfers.
What happens if I have multiple UANs?
If your UANs are linked to the same Aadhaar, they will be merged into a single account, enabling easy transfers.
How can I transfer my PF account online?
You can transfer your PF account by logging into the EPFO portal and submitting a claim through the “One Member – One EPF Account” feature.
How long does the PF transfer process take?
Once all details are verified, the PF transfer process is typically completed within a few days.
What percentage of the salary is contributed to the PF account?
Both the employee and employer contribute 12% of the employee’s salary, with 8.33% of the employer’s share going to the pension fund.
Do I need to update my personal details for a PF transfer?
Yes, ensure your personal details (name, date of birth, and gender) match across your Member ID and Aadhaar to avoid delays.
Can I initiate a PF transfer if my UAN was issued before October 1, 2017?
Yes, transfers are allowed for UANs issued before October 1, 2017, provided they are linked to Aadhaar and other details match.
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