After approving 8.25% interest rate on Employees Provident Fund for the financial year 2024-25, EPFO has given another great relief to the employees. EPFO has made the process of PF transfer even easier. Under this, now the claim to transfer or withdraw PF funds will not be rejected just because there is ‘overlap’ in the service period – that is, if the job is shown in two companies on the same day.
A circular has also been issued by EPFO in this regard, which is a big relief for lakhs of employees. This step will reduce the time taken in settlement of PF claims and save employees from unnecessary trouble.
PF transfer claim will not be rejected even if there is an overlap in the service period
The circular issued by EPFO on 20 May 2025 clearly states that now the transfer claim will not be rejected directly only due to overlap in the service dates of two companies. Transfer claims should not be rejected outright due to overlapping service, as sometimes it may also be due to genuine and genuine reasons.
Instructions to regional offices
If overlapping dates are found in a transfer claim, the regional office concerned should not reject that claim outright. In such cases, clarification will be sought only if it is needed.
Responsibility of the transfer office
The transfer office has been given the responsibility to take the process forward without returning or rejecting the claim and to seek clarification only in important cases. This move will reduce unnecessary delays and paperwork, allowing employees to get their funds on time.
EPFO reiterates old instructions
The circular reiterates the old instructions and says that it is the responsibility of the transferring (source) office to check all the details and ensure that there is no mistake in the transfer. This means that the HR department or PF office of the old company will ensure that all the details are correct before the employee leaves, so that there is no problem in the transfer later.
Guidelines for EPS (Pension Scheme) too
The Pension Division has also given guidelines for employees who have more than one PF account number, so that they can get the benefit of EPS (Employees Pension Scheme). This will ensure that employees get the benefit of their full pension even if they have worked in multiple companies.
Let us tell you that when an employee changes jobs, he can transfer the balance from his old employer’s EPF account to the new employer’s EPF account. This process is called ‘transfer claim’. This new rule of EPFO will make this process more seamless and employee-friendly than ever before, giving great relief to millions of employees.
Why is the new rule important
This new rule is important for employees in many ways:
- Now claims will not be rejected unnecessarily due to overlap, which will relieve employees from mental stress.
- The process of claims will now be completed more quickly, as regional offices will not need to seek clarification on every small overlap.
- It is often observed that some employees have a gap of one or two days between the date of leaving and joining the old and new employer, which was considered as an ‘overlap’. Now such genuine overlaps will be accepted.
- Employees with multiple PF accounts will find it easier to secure EPS benefits, as EPFO is now paying special attention to this aspect.
- This ensures that the hard-earned money of the employees is available to them without any unnecessary interruption, thereby increasing their financial security.
This is a progressive move by EPFO which promotes the principles of Digital India and ‘Ease of Living’, which will now make PF related work even easier for the employees.