0

0

0

0

0

0

0

0

0

EPFO: Transfer of provident fund account won't be required with change of jobs soon

Mini

Currently, when a member changes his/her job, a new EPF account is opened with the new company. The employee needs to transfer the money held in the EPF account with the previous company to his/her new employer.

EPFO: Transfer of provident fund account won't be required with change of jobs soon
Transferring Employees' Provident Fund (EPF) or merging your PF account will soon become a thing of the past. The Employees' Provident Fund Organisation (EPFO) has approved a centralised system that will facilitate the de-duplication and merger of all PF accounts of any member. The decision was taken during the 229 meeting of the Central Board of Trustees (CBT).
"Approval was accorded for development of centralized IT-enabled systems by C-DAC. Post this, the field functionalities will move on a central database in a phased manner enabling smoother operations and enhanced service delivery. The centralized system will facilitate the de-duplication and merger of all PF accounts of any member. It will remove the requirement of transfer of account on change of job," as per the press release issued by the Ministry of Labour and Employment on November 20.
Currently, when a member changes his/her job, a new EPF account is opened with the new company. The employee needs to transfer the money held in the EPF account with the previous company to his/her new employer. It can be done online too. A new passbook is also created with every new company for easy understanding of the account.
Meanwhile, the EPFO has started crediting interest to 25 crore provident fund accounts from November 1. PF account holders will get 8.5 percent interest for the financial year 2020-21, the EPFO said in a recent tweet.
In a circular dated October 30, the EPFO had declared an 8.5 percent return on provident fund deposits for the last financial year. The rate was decided by the Central Board of Trustees, the EPFO’s apex decision-making body, in March this year. The rate was same for the previous fiscal as well.
next story