Great News for Employees under EPFO –
Subscribers registered under Employee Provident Fund Organisation (EPFO) are in for a pleasant surprise. Now, they would not require to file employee provident fund (EPF) transfer claims on changing jobs from the next fiscal as the process would be made automated.
Currently, the subscribers of the Employees Provident Fund Organisation (EPFO) are required to file transfer of EPF claims on changing jobs despite having a universal account number (UAN).
On changing job, a subscriber provides his UAN to the new employer, who uses it for depositing his or her EPF contributions. But the UAN account does not reflect the EPF contributions made during the subscriber's previous job and interest accrued on that. The subscriber has to file an online claim through the activated UAN to get credits of EPF contributions made during his or her previous job.
Automation of PF transfer will use the UAN to eliminate the need to manually file PF transfer claims every time. The initiative is being tested on a pilot basis and will be implemented any time next year. The moment the new employer would file the monthly EPF return including the UAN of the new employee, the EPF contributions and interest earned on that would be automatically transferred.
This will enable the employee to get the credits of his EPF contribution during his previous tenure with old employer into his or her UAN automatically.
After the automation of the EPF transfer on changing jobs, the subscribers would be benefitted immensely as the UAN would be like a bank account. No matter a subscriber changes place or employer, his or her social security benefits would be accessed through the UAN. That would remain the same throughout his or her life.
Before switching jobs, the employee should ensure that his PF account has Aadhaar and bank account details seeded and verified by the previous employers. This is important as seeding Aadhaar and bank details with the PF account is required for online submission of PF Withdrawal /Settlement /Transfer claims.
The employee will have to fill the Composite Declaration Form (F-11) to avail the benefits of automated PF transfer on job change, complete with his UAN and the previous PF number. The moment the new employer files the monthly EPF return via the UAN of the new employee, the EPF contributions and interest earned earlier on that would be automatically transferred. This will enable the employee to get the credits of his EPF contribution during his previous tenure with old employer into his or her UAN automatically. The employee will be notified via SMS once the transaction goes through.
The EPFO has roped in C-DAC to study its operating systems in order to go paperless soon. EPFO gets about eight lakh EPF transfer claims every year and once the system is automated, it will ease the workload on the organisation. EPFO is currently testing the automation on a pilot basis and it is expected to be rolled out soon.