There’s good news for employees. Now, when changing jobs, there’s no need to fill out forms or wait for manual EPF transfers. The Employees’ Provident Fund Organization (EPFO) has launched an automatic transfer system, which will be fully implemented by 2025. Under this new system, employees’ PF balances will be automatically transferred to their new employer’s account. This will ensure a seamless and transparent process, without any paperwork.
What are the new rules?
EPFO has significantly simplified the PF transfer process. In most cases, there will no longer be a need to submit an online transfer claim through the previous or current employer. Under the new rules, transfer claims will be sent directly to EPFO, eliminating the need for employer intervention. This simplified process has significantly reduced claim settlement time. Member complaints and claim rejections have also decreased. Large employers have also benefited significantly from this streamlined system, as previously they shouldered the entire burden of approving such transfers.
Will PF transfer be completed in 5 days now?
Previously, employees had to fill out Form 13 when changing jobs, which required verification from both the previous and new employers. This process took one to two months, and claims were often rejected due to technical errors or interest loss. These problems will now be eliminated under the new automated transfer system. EPFO says the transfer process will now be completed within just 3 to 5 days, providing a fast, transparent, and hassle-free experience for employees.
Benefits of the new EPF transfer system
– Transfers will now be completed in a few days instead of months.
– No need to upload any documents, as the system will process the transfer automatically.
– Interest will continue to accrue on EPF balance even during the transfer process.
– The entire amount will be available in a single account at the time of retirement.
– Changing jobs, especially in the private sector, has now become easier and more convenient.
