EPFO: Big news for EPFO members. If you have recently switched jobs and assumed that your Employees’ Provident Fund (EPF) balance would be immediately moved to the new company’s PF account, that’s not the case. The Employees’ Provident Fund Organization (EPFO) has made a significant update regarding its new automatic transfer system.
Under this new system, the PF balance will be transferred to the new company’s account only when the new employer makes the first EPF contribution to your account. This means that the PF transfer will not occur just by changing jobs; it will only happen once the initial PF deposit is made by the new company, triggering the automatic transfer of the old PF balance to the new account. Let’s delve into the details.
As per the EPFO, if an employee’s Universal Account Number (UAN) is linked to Aadhaar and their KYC details are fully updated, they will not have to file a separate PF transfer claim. The entire process will happen automatically unless the employee requests to halt it.
Recently, Union Labor and Employment Minister Mansukh Mandaviya announced that PF transfers for employees with Aadhaar-linked UANs will now be entirely automatic. Previously, employees had to seek approval from both their old and new companies and submit separate transfer applications to the EPFO, causing delays of weeks or even months. However, with the new system, the UAN will remain constant throughout an employee’s career, automatically linking all PF accounts associated with it. This will streamline paperwork and eliminate the need for repeated applications by employees.
EPF is a significant retirement savings scheme by the Indian Government, where both the employee and the employer contribute 12% each of the basic salary and dearness allowance (DA). Currently, EPF earns an annual interest rate of 8.25% for the financial year 2025-26, calculated based on the monthly closing balance and credited at the end of the financial year.
Consolidating all PF accounts under a single UAN is crucial for employees changing jobs, ensuring their complete service history remains in one place. It also simplifies the processing of future PF advances, final settlements, or pension claims.
The EPFO clarified that the auto-transfer system is part of a broader database upgrade and software enhancement. While some PF claims and services may experience minor delays during the system’s implementation, employees can access their complete employment and PF records in the “Service History” section by logging into the EPFO member portal with their UAN.
For those with complete KYC and Aadhaar linked to UAN, the old PF balance will automatically transfer to the new account once the first PF installment is deposited in the new job, making retirement savings management easier than ever.