Switching Jobs? Your PF Can Be Transferred Automatically If You Do This One Thing..
Automatic transfer of PF will save weeks for the employees
In a salaried employee’s life, Provident Funds has a special place – The employees save money from the regular salary, and accumulates a fund which can be used during an emergency or an urgent need.
However, while switching jobs, the transfer of PF money from the old employer’s account to the new employer’s account takes weeks to get processed and needs a series of paperwork.
But not anymore.
Govt. controlled retirement fund body, Employees Provident Fund Organisation (EPFO) has now issued guidelines for automatic funds transfer when a job is changed.
But, there is a catch: You need to do this one thing before the automatic PF funds happen.
Automatic PF Transfer: How To Start The Process?
Aadhaar is the catalyst which will enable automatic PF transfer from your old job, to the new one. EPFO has now issued new, fresh guidelines to enable automatic PF transfer on switching to a new job.
There are only things which need to be done here:
Step 1: The employee will need to fill up Composite Declaration Form (F-11), during the employment phase. In this, the employee will need to enter the 12-digit Universal Account Number or UAN
Step 2: Link their UAN with Aadhaar and bank details, which had to be verified by the employer.
Once these two steps are taken, the employee need not worry about anything else – As soon as he or she changes a job, the PF will be au transferred to the new job. The process of automatic PF transfer will start kick in once the employer deposits their share of PF contribution into the employee’s PF account.
Any UAN linked with Aadhaar can enable seamless Withdrawal/Settlement/Transfer of PF funds for the employees.
This is what EPFO websites says: “Members with authenticated Aadhaar and bank details seeded against their UAN can now submit their PF Withdrawal/Settlement/Transfer claims online.”
What If Aadhaar Is Not Linked With UAN?
In that case, the employee will have to take the offline route and fill Form 13 (revised) after leaving the old company, and joining the new organization. This offline route may take upto 4 to 6 weeks, as the whole process becomes manual.
Note here, that in case the organization is exempted from paying PF for employees, then the Aadhaar based online transfer of PF funds won’t work, and the employee will have to fill Form 13 (revised) for processing and transferring the PF.
This process of automatic PF transfer on switching jobs will kickstart from next fiscal year onwards.