Attention PF account holders! EPFO Board takes THIS decision – Know details
The Provident Fund (PF) amount is considered to be the biggest investment for the future for the working class. Now, in a piece of good news for service class employees, the Employees Provident Fund Organisation or EPFO Board of Trustees has come up with an important decision regarding the transfer of PF funds upon changing a job.
The EPFO Board of Trustee, in its 229th meeting on Saturday (November 20), approved a centralised IT system of PF account whereby employees don’t have to get their PF fund transferred when they change jobs.
The PF account number will remain intact on changing jobs and the employee doesn’t have to worry about PF account transfer.
What are the current rules?
According to the existing rules, after leaving a job, the PF holder has to complete the paperwork at both the old and new workplaces. Due to all these complicated and time-consuming processes, many PF holders do not transfer the amount to the new account.
In the new company, another PF account is created based on the previous UAN number. It does not show the total amount in the PF account as the PF holder has not transferred the PF amount of the previous company.