- Automatic PF Balance Transfer:
- Starting from April 1, when a salaried employee changes jobs, their PF balance will be automatically transferred to the new employer without any paperwork.
- The transfer occurs once the new employer deposits the PF contribution from the employee’s first month’s salary.
- The process requires the employee to share essential details like UAN, Aadhaar number, mobile number, and date of exit from the previous job with the new employer.
- Seeding of UAN & Aadhaar:
- For the auto-transfer to take place, the Universal Account Number (UAN) must be seeded with Aadhaar and verified at the previous establishment level.
- The date of exit from the previous job is crucial for initiating the transfer, and it can be any date in the month of the last contribution made by the previous employer.
- Transfer Process:
- Upon fulfilling the requirements, an SMS trigger will be sent to the registered mobile number of the employee to initiate the transfer.
- If the employee does not stop the proposed auto-transfer within 10 days, the first contribution from the new employer will be deposited into the PF account.
- Benefits of Automatic Transfer:
- Simplifies the process of managing PF accounts across different jobs for employees.
- Enhances EPFO’s digital initiatives and streamlines services for subscribers.
- Offers a hassle-free experience for employees changing jobs, according to Sandeep Agrawal, director and co-founder of Teamlease Regtech.
- Exclusions:
- Automatic PF balance transfer is not applicable to employees under exempted PF trusts.
- Transfer does not occur if UAN is not seeded with Aadhaar or if the date of exit is not updated by the previous employer.
Important Points:
- Transferring PF balance with each job change is essential to earn interest annually and allow the retirement corpus to grow.
- The EPFO has fixed the interest rate for FY23 at 8.25%, which is a three-year high.
Overall, the automatic transfer of PF balance aims to simplify the process for employees and ensure the growth of their retirement savings.
