Have you ever thought that as soon as you change jobs, your old PF money should automatically be transferred to the new account without any hassle? Now this dream is about to become reality. From the year 2025, EPFO ​​has made preparations to implement such a system in which employees will neither have to fill any form nor wait for months. Just change the job and the money will automatically be transferred to the account of the new employer. Everything will happen automatically with one click. Let us find out how this will happen.

Balance will be transferred automatically as soon as job is changed.

The hassle of PF transfer after changing job is now going to end. Employees’ Provident Fund Organization (EPFO) has started a new automatic transfer system, which will be fully implemented from 2025. This means that whenever an employee joins a new job, his old PF balance will automatically be transferred to the account of the new employer. Now there will be no need for any form, nor will you have to visit the old office.

What was the process before?

In the earlier system, employees had to fill Form-13. Money was transferred only after the verification process from both the old and new employers. This entire work took 1 to 2 months, and many times the claim was rejected. According to EPFO ​​data, every year lakhs of claims remained pending for a long time, due to which the employees had to suffer loss of interest.

Possibilities of fraud will be eliminated

Now this problem will be completely eliminated with the new automatic transfer system. EPFO says that this will benefit more than 10 crore employees. A senior official said that this system will be completely digital and paperless. This will not only speed up the process but also reduce the chances of fraud due to transfer on the basis of UAN.

With this, employees will now get these benefits

1- Time will be saved, because now the transfer will be completed automatically in a few days.

2- There will be no need to upload any document.

3- Interest will continue to be received, that is, whether the money is in transfer or in any process, there will be no loss of interest.

4- At the time of retirement, the entire amount will be available at one place, which will make financial management easier.

5- Job switching will now become easy and safe, especially for private sector employees.

EPFO said that this system will be completely implemented by the first quarter of 2025. The organization has appealed to all the employees to activate their UAN now, so that there is no problem in transfer.

This is how you can activate UAN

The process of UAN activation is also very easy. Go to EPFO’s member portal (https://unifiedportal-mem.epfindia.gov.in) and click on the Activate UAN link. After that enter UAN, name, date of birth, Aadhaar number and mobile number. Verify with the OTP received on the mobile and set the login credentials. Once the activation is complete, employees can check their PF balance, claim status and KYC updates online.

EPFO is now moving towards completely digitalizing the PF system. There are preparations to make PF withdrawal automatic in the coming months. If an employee’s UAN is old, then it should be updated immediately by visiting the app or website so that the retirement fund remains completely safe and connected.

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EPFO New Rule: Employees’ Provident Fund Organization (EPFO) has changed the deadline for premature final settlement of provident fund and pension accounts. Now the rules have become stricter than before. Under this, EPFO ​​subscribers can now apply for final settlement only after 12 months of leaving the job, whereas earlier this deadline was two months. Similarly, now pension withdrawal will be allowed after remaining unemployed for 36 months.

What are the rules now?

At present, if a member is unemployed for at least one month, he can withdraw up to 75 percent of the EPF balance from his PF account. Under Article 69(2) of the EPF scheme, a member who remains unemployed for two consecutive months is allowed to withdraw his entire EPF balance.

Regarding EPF withdrawal, Union Minister Mansukh Mandaviya said that in case of job loss, up to 75 percent of the amount in the Provident Fund can be withdrawn immediately. The remaining 25 percent amount, which has been fixed as the minimum balance, can be withdrawn after one year of leaving the job. He said that keeping in mind the convenience of the members and their security after retirement, it has been decided to make partial withdrawal simple and liberal.

Why is it important to maintain minimum balance?

Barring special circumstances, at least 25 percent minimum balance will have to be maintained in the EPF account so that the members continue to get the benefit of high interest rate and compounding, which is 8.25 percent annually.

This is also an advantage

One advantage of this change is that earlier members had to give reasons for partial withdrawal such as being unemployed or any natural disaster or closure of a company or institution, etc. Now members will not have to give any reason or submit any documents along with the application. This has made partial withdrawal much easier than before.

Why was this change considered necessary?

Earlier, if an EPFO ​​subscriber remained unemployed for 2 months, he could withdraw his entire PF and pension amount. Now when he gets a new job and then joins EPFO, he faces problems in the matter of pension. Actually, for pension it is necessary to have at least ten years of job experience. Now when people withdraw all the money after losing their first job, it breaks the cycle. Since the tenure of both the previous job and the new job cannot be added, one has to complete ten years of service again in the new job. In such a situation, if someone remains unemployed not just for one or two months, but for the entire 12 months, then he will be allowed to withdraw the entire amount of PF, understanding that he needs the money.

Rules regarding pension amount also changed

In the meeting of the Central Board of Trustees of EPFO, Labor Minister Mansukh Mandaviya also decided new rules regarding pension amount. Similarly, now the pension amount will also be able to be withdrawn in 36 months instead of 2 months. This means that now people may have to wait longer than before to withdraw PF money. This will also fulfill the financial needs and there will be no worry about financial security after retirement.

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