Soon: Automatic transfer of your EPF accounts on the job

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The Employee Provident Fund (EPF) is one of the recommended savings schemes driven by supervision under the Government of India, the Ministry of Labour regulates EPF schemes in India. 

It is the foremost scheme under the Employee Provident Fund and Miscellaneous Provisions Act,1952. Employee Provident Fund Organisation(EPFO) manages this savings scheme. 

Shortly, you will not have to bother about now transferring merging your Employees’ Provident Fund (EPF) account when you are switching jobs. 

Because the Employees’ Provident Fund Organisation (EPFO)  has confirmed by C-DAC the advancement of centralized IT-enabled systems.

This centralized system will expedite the de-duplication and alliance of all PF accounts of members. So whenever a member changes jobs, it will eliminate the requirement of transfer of EPF account.

This decision was confirmed in the Central Board of Trustees (CBT) meeting, held on 20 Nov 2021.

Once member changes their job, a new EPF account is open with the new company, as per the EPF rules.

It will be done online by providing Universal Account Number (UAN) was linked with Aadhaar on the Member Sewa portal. 

If UAN is not linked with the Aadhaar, then the employee will have to do this offline as well by proffering a form to the new employer.

It is important to transfer one’s EPF account to the new from the previous employer to ensure that the perpetual service period is certainly captured for the purpose of calculation of pension for the Employees’ Pension Scheme and for also income tax purposes.

The admiration for the development of a centralized IT-enabled system was granted by C-DAC. 

Hereafter, the sectoral activities would induce a central database in a phased manner. Through, smooth operations and better service delivery will be possible. 

Few other important decisions were taken by the CBT in its meeting held on  20Nov. This will cover all the decisions to empower the Finance Investment & Audit Committee (FIAC) to circumscribe the investment options, based on case-to-case.

For investment, in all such asset classes in which was covered in the Pattern of Investment as announced by the Government of India.

The board has recommended investments in AIFs

We should only focus on government-backed alternatives in which are category one funds like public sector Invest in ITs and it would be on a case-to-case basis, secretary of labour and employment Sunil Barthwal said after the 229th CBT meeting.

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