EPFO Update: Changing jobs is essential for career advancement. Many people look for a new job for better pay, better working environment and more. However, a common problem faced by many while changing jobs is transferring their old PF account money to a new account. Although transferring PF to another account has become easy now, there are often some challenges from the previous employer side, which creates additional complications.
HR departments are reluctant to approve PF transfer requests after an employee leaves, or sometimes the previous company may close down completely – such incidents are not uncommon. As a result, numerous people leave their PF money behind and later forget about it.
Worrying salary in hand for employees, will reduce
But now there is good news in this regard. EPFO has made this process so easy that you no longer have to request your old HR for help! Now you can merge your PF without the digital signature of your previous employer. In this report, let’s know the ‘solution’ step by step.
Why is it important to merge your PF?
Many people think that leaving their old PF money as it is is the best option. But this is a big mistake! If you do not transfer the money from your old account to the new one, it may become inactive after three years and interest will stop accruing. Also, if you withdraw money directly from your old account, you may have to pay tax (TDS). By consolidating your employment records, you improve your overall employment history, which allows you to withdraw money tax-free after completing five years of service. Also, consolidating accounts means that your pension service is linked to your overall service, which helps you get a bigger pension at the time of retirement.
How will it work without the old company?
Earlier, the rule was that PF transfer requests could only be approved by the HR of the previous company. But now, EPFO has given a new option to employees. You can now send your transfer request to your current employer. You just need to ensure that your KYC is updated with your current company and your UAN is active.
So, if your new company’s HR digitally signs your request, you don’t need to visit your old company.
Step-by-step process for online transfer
Follow these steps to complete your task without involving HR.
Step 1: Log in to the EPFO portal. First, go to the ‘Unified Member Portal’ and log in using your UAN number and password. Don’t forget to fill the captcha code.
Step 2: Select ‘One Member – One EPF Account’
After logging in, click on the ‘Online Services’ tab at the top. You will see the option ‘One Member – One EPF Account (Transfer Request)’; click on it.
Step 3: Confirm your details.
A page will appear where your current job details will be displayed. Make sure that your name, bank account and Aadhaar card details are correct.
Step 4: Enter your old company details.
Click on the ‘Get Details’ button. Now you will see your old PF account details. Here, you have to decide whether you want to send your request to the old company or the new company. This is where you will select your current employer.
Step 5: Enter your UAN number and click on ‘Get OTP’. An OTP will come on your registered mobile number. Enter it and submit. After that, your request will be sent to the HR team of your new company.
What if the old company closes?
The biggest problem arises when the company closes or ceases to exist, but the law supports you. If the company is closed and there is no one to sign, then you can also get the request authenticated through the bank manager.
Is there any tax on PF withdrawal?
- It is also very important to understand the withdrawal process.
- If your total employment period is more than five years, PF withdrawal is completely tax-free.
What should PF holders keep an eye on?
- Make sure that all your previous jobs have the same UIN number. If they don’t match, you need to merge them first.
- If there is a mismatch between your name or date of birth in your old company’s records and Aadhaar, your online transfer may be rejected.
- So, first get it sorted out through a ‘Joint Declaration Form’.
- Also, double check that your previous employer has updated your date of exit on the portal. Without this, you won’t be able to transfer your funds.
Say goodbye to HR hassles
Your PF money is your hard-earned money. Don’t let it slip away due to the company’s negligence. In this era of Digital India, you are in control. If your old company’s HR doesn’t pick up your phone or harasses you, Submit a request through your new company following the procedures mentioned above. The money will start to be deposited into your new account within 15 to 20 days.
Avijit
A digital media professional with 4 years of experience, skilled in online content creation, media and information work, his goal is to regularly bring updates on government projects, scholarships and jobs to his readers.
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