EPF–Withdrawing PF money as soon as you change jobs can be costly, don’t make this mistakes 

EPF Account – Lakhs of employees working in the private sector consider Employees Provident Fund (EPF) important in their retirement planning. Every month 12 percent of the employee’s basic salary and DA is deposited in the EPF account. Also, the employer also contributes the same amount. This amount gets deposited in the EPF account and keeps increasing through compounding over a long period of time. The interest rate on EPF for the financial year 2024-25 has been fixed at 8.25 percent, which is quite attractive compared to other options in the market.

Withdrawing EPF as soon as you change your job can be costly

It is often seen that many employees withdraw EPF amount while changing jobs. Experts say that this decision can cause great harm in the long run. The money deposited in EPF remains for years and gives the full benefit of compounding, which creates a large fund at the time of retirement.

Therefore, the EPF account should be transferred to the new employer as soon as the job is changed. EPFO ​​(Employees Provident Fund Organisation) is constantly trying to make this process easier. Now it has become very easy to transfer EPF through digital medium, so that the employee does not have to visit the EPFO ​​office.

How to transfer EPF account?

If you have changed your job or are about to change it, then it is very important to understand the process of EPF transfer. Especially for those who have started working after September 2014. Keep in mind, if your basic salary is less than Rs 15,000, then you will get the facility of Employee Pension Scheme (EPS).

Every month’s salary slip should be kept safely so that information about the basic salary and salary structure is available. You can also check your service history by visiting the EPFO ​​website, which will tell whether your EPF account is being updated correctly or not.

Get the transfer done within six months

Experts advise that one should apply for EPF account transfer within six months of changing jobs. This reduces the risk of facing any problems later. Go to the EPFO ​​website and login with your Universal Account Number (UAN) and password.

Go to the Online Services section and select One Member-One EPF Account (Transfer Request) option. Verify your personal information, enter the details of old and new employer. You can choose either old or new employer for claim attestation.

After this, click on Get OTP and enter the received OTP and submit it. You will get a tracking ID and PF account details. Print and sign Form 13 and submit it to your employer within 10 days. After approval from both the employer and EPFO, you will get an SMS notification. Usually your EPF will be transferred within two to three weeks.

EPF secures retirement

Regular investment in EPF not only secures your retirement, but it also teaches you financial discipline. When changing jobs, avoid withdrawing EPF money and keep transferring it. This work of EPFO ​​has become easy through digital medium. This will not only keep your fund growing, but you will also have a strong source of financial security at the time of retirement.