EPFO is among the world's largest social security organisation.
In case you have changed your job, or planning to then you might not need to consider transferring your Employee Provident Fund account yourself anymore.
According to a report published in the Times of India last month, the retirement fund body, Employees’ Provident Fund Organisation is mulling over option to introduce a process in September where the PF account of an employee will automatically be transferred if he/she changes their job.
The new rule will make the tedious process of transferring the PF account simpler and will also increase the account’s security.
Quoting chief PF Commissioner, V Joy, the TOI report stated that the new scheme will also facilitate the transfer of the account within just three days without filing any application.
Contribution to the EPF account: Every salaried individual contributes a certain portion of their salary to the PF account along with the same amount of contribution by their employer. The contribution then compounds at a rate declared by the EPFO every year. At present, the rate of interest is 8.65% per annum
Following are the listed features of the new EPFO scheme:
Simple, hassle-free process:
Many employees prefer to withdraw their PF as the process of transferring is time consuming. However, with the introduction of the new scheme, the transferring of account will be done automatically within just three days of a job change, that too without filing any application.
This will also led to the employees to save more funds for the future.
Linking of PF account with Aadhaar:
The linking of an individual’s Aadhaar card with PF account has been made mandatory. However, it is yet to be seen that if in wake of the Supreme Court’s latest order on Aadhaar breaching privacy, changes anything or not.
The Aadhaar-PF linking helps avoid any fraudulent withdrawal of money from one’s PF account. Also, in order to register with the unique identity number, the transfer of an employee’s account is simpler.
Tracing old accounts:
Earlier, the Provident Fund accounts were encountered with a lot of glitches at the administration level. Since there was not a provision to port the account, employees used to abandon their account or chose to withdraw the amount.
The rules also made it clear that an employee is only eligible to withdraw their PF money if, they are retiring or having a three-month unemployment period.
However, with the introduction of Universal Account Number (UAN) in 2014, the EPFO facilitated portability after which employees’ EPF accounts came under one UAN.
But still there are several of PF accounts which were waiting to be claimed due to many procedures involved.
Experts believe in presence of linking the UID number with one’s PF will solve the problem of unclaimed accounts as the process is being worked upon to be less tedious.
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