l EMPLOYEES PROVIDENT FUND REDUCES PAPERWORK: PF balance transfers go automatic
WHEN a salaried employee switches jobs, her provident fund (PF) balance will now get automatically transferred to the new employer without any documentation. The account will get seamlessly transferred the moment the new employer deposits the PF contribution from the employee’s first month’s salary.
This seamless transfer of PF balance has started from April 1. The employee will have to share details such as UAN, Aadhaar number, mobile number and the date of exit to the new employer to enable auto-transfer. The PF balance will trigger an auto-transfer process against the employee’s previous PF ID to the new PF ID if the Universal Account Number (UAN) is seeded with Aadhaar and verified at the previous establishment level.
The date of exit of the previous job is mandatory for the transfer. The date of exit can be any date in the month in which the last contribution was made by the previous employer.
Seeding of UAN & Aadhaar
An SMS trigger will be sent to the registered mobile number of the employee and a transfer will be initiated. If the employee does not stop the proposed auto-transfer within 10 days, the first contribution of the employer will be deposited to the employee PF account and reconciled. The Employees’ Provident Fund Organisation (EPFO) will send an SMS and email to the employee after the auto-transfer also. The transfer includes both the EPF as well as EPS amount. The transfer will be shown as a credit entry in her latest passbook.
The automatic balance transfer simplifies the process of managing the PF account across different jobs. Sandeep Agrawal, director and co-founder of Teamlease Regtech, says the EPFO introduced the automatic transfer of EPF accounts to enhance its digital initiatives and
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