More reports on: Economy - general, Government policies

Provident fund to be portable with change of job from next month

news
11 August 2017

With the provident fund account number becoming portable from next month, employees will be able to get their PF accounts transferred automatically on a change of job.

Reports quoting chief provident fund commissioner V P Joy said employees may also retain the same PF account, which is now a Universal Account Number, for social security after switching job.

For enrollment into PF and subsequent transfers, Aadhaar card has been made mandatory, although it is not necessary for closing an existing PF account.

Portability will help PF accounts to be transferred seamlessly, avoiding the need for closure of accounts and starting afresh with change of jobs. Now, with Aadhaar becoming mandatory for enrollment, PF numbers get tagged with Aadhaar numbers, making these portable.

Like Aadhaar and PAN, the PF Universal Account Number is also a permanent account and the employee can retain the same account for social security.

Adhaar ID will be used for verification and in future, the account will be transferred without any application if the employee goes anywhere in the country.

The EPFO recently launched an online system to facilitate transfer claims and withdrawals by its members.

Using the system, an employee can transfer his or her provident fund (EPF) balance with the previous employer to a new employer or can make a partial/complete withdrawal of his PF balance with ease.

Employees need to have only one UAN throughout their working life irrespective of the number of companies they change.

The UAN can be used to know the balance and it is an easy process if it has been allotted by the EPFO.

Employees can get the 12-digit UAN activated through employer, which can then be used to know the summary of PF deducted through EPFO portal.

All employees need to have only one UAN throughout their working life irrespective of the number of companies they change. It is a universal account number (UAN) which facilitates in linking of multiple EPF accounts of a member.





 search domain-b
  go