New EPFO Rules: The new automatic EPF transfer system has brought relief to crores of employees. This change will prove to be very beneficial especially for those who frequently change jobs in the private sector.
After changing jobs, your old PF account balance will now be transferred to your new account without any hassle. In fact, the Employees’ Provident Fund Organization (EPFO) is implementing an automated system from 2025, eliminating the need for employees to fill out any forms or visit HR or their old office. Simply join a new job, and your PF balance will automatically be transferred to the new employer’s account. Let’s explore the new EPFO rule every salaried employee should know…
According to EPFO, this system will be completely digital and paperless, which will speed up the process and almost eliminate the possibility of fraud.
What is the new EPFO auto transfer system?
The new system will be fully implemented by the first quarter of 2025. As soon as an employee joins a new job and the new employer updates the joining date, their old PF balance will automatically be transferred to the new account. Previously, this process required filling out Form 13 and obtaining verification from both the old and new employers. This entire process took one to two months, and claims were often rejected. But now this hassle will end, and the system will handle everything automatically.
How was PF transfer done earlier?
Previously, employees had to fill out separate forms for PF transfers. Signature verification was required from both the old and new offices. PF transfers were often pending due to errors in joining or exit dates. According to EPFO data, millions of claims remained pending for months each year, resulting in loss of interest.
UAN number will not change
In the new system, every employee will have a single Universal Account Number (UAN). Previously, two or three UANs were mistakenly created for the same individual, causing difficulties with transfers. Now, the EPFO has decided that if an employee already has a UAN, a new one will not be created. This will simplify PF management and allow for tracking of funds in one place.
Aadhaar and e-KYC will enable faster verification
EPFO has made the new system completely digital. Aadhaar-based e-KYC and e-Sign will now be used for PF transfers. This will significantly reduce the verification time. While it previously took 30-45 days, the process will now be completed in just 7-10 days. Once the transfer is complete, the balance in the old account will show “zero,” and the total amount will be added to the new passbook.
Employees will be able to update their exit date themselves
Now, if the previous employer hasn’t updated the exit date, the employee can update it themselves using their Aadhaar OTP. This will reduce the possibility of delays or technical issues.
Interest will also be available during transfer.
Previously, when the PF transfer process was underway, interest on the old account would stop. However, the EPFO has now clarified that interest will continue to accrue even during the transfer process. This means that your money will never remain dead; it will continue to grow.
Employees will get many big benefits
The new automatic transfer system brings relief to millions of employees. PF transfers will no longer waste time or interest. The hassle of filling out forms, uploading documents, or running around HR will be eliminated. Furthermore, the entire amount will be available in one place upon retirement, making financial management easier. This change will prove especially beneficial for those who frequently change jobs in the private sector.
How to activate your UAN
If you have not activated your UAN yet, do it immediately.
- Visit the EPFO member portal at https://unifiedportal-mem.epfindia.gov.in and click on “Activate UAN.” Enter your name, date of birth, Aadhaar number, and mobile number.
- Verify with OTP and create login.
- Once activated, you will be able to do all the work like PF balance, claim status and KYC update online.
With Digital India, the PF system is also completely paperless.
The EPFO is now moving towards digitizing its entire system. In the coming months, it is also preparing to automate the PF withdrawal process. The aim is to ensure secure, fast, and hassle-free management of employees’ retirement funds.
This move by the EPFO will be a game-changer for millions of employees who are changing jobs. Now, PF transfers will require no forms or HR approval. Your PF will automatically be transferred to your new account.
