EPF Account- If you are an EPFO member, then this article is for you. Employees Provident Fund (EPF) plays a big role in the retirement planning of people doing private jobs. Employees maintain discipline in investing in EPF. Every month 12 percent of his basic salary (plus DA) goes into the EPF account. The employer also contributes the same amount every month to the employee’s EPF account.
The interest rate of EPF is quite attractive. It is 8.25 percent for the financial year 2024-25. If the employee transfers the EPF account to the new employer every time he changes jobs and continues to contribute to it till retirement, then a very good fund can be created for him on retirement.
Withdrawing money can cause huge losses in the long run
Experts say that many employees withdraw money from EPF when they change jobs. This causes them a lot of loss. They miss out on the magic of compounding. If an employee changes jobs, he should transfer his EPF account to the new employer. EPFO is constantly trying to simplify the process of account transfer. Its focus is on making the process digital. This eliminates the need for employees to visit the EPFO office.
Monitor Service History on EPFO Member Portal
If you have changed your job or are going to change it, then it is important for you to understand the process of transferring EPF. If you have started a job after September 2014, then you will get the facility of EPS only if your basic salary is less than Rs 15,000. Experts say that employees should keep their salary slips of every month safely. This gives immediate information about the entire salary structure including the basic salary. Employees can also monitor their service history on the EPFO member portal.
Start the transfer process within six months of changing jobs
Experts say that the process of transferring EPF should be started within six months of changing the job. This reduces the chances of problems in transfer. Online account transfer request can be made through the EPFO website. You have to log in to the website with your Universal Account Number (UAN) and password. After that, in the ‘Online Services’ section, you have to select ‘One Member-One EPF Account (Transfer Request)’.
After verifying the personal information, you will have to enter the details of the old and new employers. You can select either the old or the new employer for claim attestation. After this, you will have to click on ‘Get OTP’. After entering the OTP, you will have to click on submit. You will get a tracking ID and PF account information. After this, you will have to print Form 13 and sign it. Then within 10 days, it will have to be submitted to your employer. After the employer and EPFO approve your transfer request, you will get information about it through SMS. Your EPF account will be transferred within two to three weeks.