EPFO: The Employees’ Provident Fund Organization (EPFO) has introduced two significant services for working professionals. Employees with up to Rs 1,000 in old or closed PF accounts will no longer need to submit a separate claim to withdraw their funds. The EPFO will automatically settle this amount in eligible accounts. Additionally, PF account holders will no longer need to visit the EPFO office or website to check their balance, view recent transactions, or access passbook information. All these services will now also be available via WhatsApp.
Mansukh Mandaviya initiated
Union Labor and Employment Minister Mansukh Mandaviya unveiled these two services during the EPFO’s 74th Foundation Day celebration in New Delhi on November 1. The government’s goal is to streamline PF-related services and alleviate the need for employees to make frequent office visits.
You will receive funds without any claim
Another new feature from the EPFO offers relief to employees with small amounts trapped in their old and inactive PF accounts. Now, with Aadhaar verification, if there is a balance of up to Rs 1,000 in such inactive PF accounts, eligible account holders will not need to file a separate claim to access their money. The EPFO will automatically begin the settlement process after verifying the necessary identification and bank details.
According to the ministry, this initiative is anticipated to benefit around 100,000 PF accounts, with approximately Rs 5 crore held in these accounts. This could be especially advantageous for employees who have stopped withdrawing or transferring small amounts from their old PF accounts to a new one when changing jobs. The Rs 1,000 limit is specific to the automatic settlement feature. This does not imply that employees cannot withdraw more than Rs 1,000 from their regular PF accounts. PF withdrawals and transfers will continue as per the usual regulations.
When is a PF account considered inactive?
Many employees think that their old PF account becomes inactive immediately after leaving their job, but this is not the case. Under the EPF Scheme 1952, an account is generally considered inactive if contributions are not received for three consecutive years after a member reaches the age of 55 or retires, whichever is later.
Therefore, if an employee changes jobs and has deposits in the old account, the account does not become inactive simply because contributions stop. Employees are advised to transfer the old PF account balance to the new account upon changing jobs, so that the money does not remain stuck in different accounts.