New Delhi: The Employee Provident Fund Organisation (EPFO) has now made the process of transferring Provident Fund (PF) amounts significantly easier for crores of employees changing jobs. The biggest change is that you will no longer have to wait for approval from your old or new employer to transfer your PF amount from one account to another.
The Ministry of Labour and Employment recently provided information regarding this, stating that EPFO has made necessary changes to Form 13 for this purpose. Previously, when an employee changed jobs, transferring the PF amount involved the role of two EPF offices – the source office from where the money is to be transferred and the destination office where the money is to be credited. Approval for the claim was required from both offices, and employer approval was also a significant part of this. This process often caused delays and inconvenience to members.
Now, to simplify this entire process, EPFO has made the required changes in the Form 13 software. Under this new system, the need for approval of the transfer claim from the destination office has been eliminated. This means that once the transfer claim is approved by the source office, the amount from your previous PF account will be automatically transferred to your current account in the new establishment at the destination office.
More than 1 crore 25 lakh EPFO members are expected to directly benefit from this significant step. It is estimated that this change will facilitate and significantly expedite the transfer of approximately ₹9000 crore in PF every year. Furthermore, EPFO has also introduced the facility to separately display the taxable and non-taxable components of the deposited PF amount. This will make the calculation of TDS (Tax Deducted at Source) on taxable PF interest accurate and easier.
Relaxation also given in UAN Bulk Generation in Some Cases:
In some specific cases, such as where an exempted PF trust has surrendered its exemption or has handed over the money to EPFO after cancellation, or in cases involving the payment of past contributions due to quasi-judicial/recovery proceedings, EPFO has introduced a facility for bulk generation of UAN (Universal Account Number) even without immediate Aadhaar seeding for such members. However, to ensure the security of the deposited amount, all such UANs will remain frozen until Aadhaar seeding is completed. This bulk generation will be possible based on member ID and other details, so that funds can be sent to the accounts of the concerned members as soon as possible.
ESIC Added 15.43 Lakh New Members in February:
Meanwhile, a separate update has come regarding the Employees’ State Insurance Corporation (ESIC). In the month of February, 15.43 lakh new members joined ESIC. According to the data released on Friday, 23,526 new establishments also came under the ambit of the ESI scheme in February. Among the new members who joined in February, 7.36 lakh employees are up to 25 years of age, constituting about 47.7% of the total new members. The net enrollment of women in February was 3.35 lakh.
