EPFO News: If an EPFO member changes job, his PF amount will be automatically transferred to the new company or employer. Form-31 will not have to be filled to transfer PF amount from old to new company. This will provide relief to crores of government and private employees.
Employees Provident Fund Organization (EPFO) has made a major change in the rules for crores of its members. Under this, now if an EPFO member changes job, his PF amount will be automatically transferred to the new company or employer. The member will not need to apply for this. The new rule has been implemented.
It is being told that after the introduction of the new facility, employees will not have to fill Form-31 to transfer PF amount from the old to the new company. Earlier, while changing jobs, PF account holders had to complete application related formalities despite having Universal Account Number (UAN). Under this, a special form-31 had to be filled and submitted. After this the amount was transferred to the new company within a few days. In the new system, one will be freed from completing many formalities.
Possibility of error will be eliminated
It is noteworthy that when an employee changes job, the new company or employer is added to his UAN (PF account). He had to go to the EPFO website and link the old PF account with the new account online. EPFO members often had to face difficulties in this process. There was always a possibility of something going wrong. Apart from this, old and new employers also had to complete its formalities. Now the member will not have any role in this process.
This is why UAN is necessary
Universal Account Number (UAN) acts as a centralized platform for PF account holders. It allows a member to link multiple PF accounts simultaneously. Apart from this, UAN also provides other services. Under this, EPFO member can download his UAN card and PF passbook with its help. Information about total balance can be obtained through SMS.
12 percent contribution of salary
According to EPFO rules, employees have to contribute 12 percent of their basic salary towards PF. Employers also have to contribute an equal amount. Through this account, pension is given to an employee later on.
