EPF account Change! EPFO seems to have chalked a major improvement concerning EPF account transfer processes. This will be a boon to largely private-sector employees who are always changing jobs and are haunted by the never-ending EPF balance transfer problem.
A Big Relief: No More Employer Approval Needed for EPF Transfer
In its landmark decision, EPFO has removed employer approval as a requirement for transferring your EPF account from one organization to another. This would wipe out the biggest roadblock that comes in handy when employees are transitioning between jobs.
For the implementation of this change, EPFO has upgraded its software for Form 13 concerning EPF transfer. This upgrade will facilitate much faster and smoother functioning, with added transparency during account transfer processes. Now it will be a rare case when employees will have to chase for their employers’ approval or will fear delayed approval.
How Will It Work Now?
Earlier, there were approvals required from both the source and the destination employers to transfer the PF account. This caused long delays and unnecessary paperwork. After the latest update:
- Only the source office’s approval will be needed.
- After approval, the EPF funds will be directly transferred to the new employer’s account.
- The need for intervention by the destination office has been done away with altogether.
- This means that employees will get less time for EPF transfer and will focus on their new role without any financial uncertainties.
Massive Impact: Over One Crore Employees to Benefit Annually
This change is not just bureaucratic; it is life-changing. Over one crore EPF subscribers across India change jobs every year. Till now, many of them faced hurdles and delayed processes for these EPF accounts that were being transferred.
EPFO estimates that this will facilitate the smooth transfer of money to the tune of over ₹90,000 crore every year. It is a big win for the employee, who deserves easy access to his retirement funds.
A New Functionality: Bulk UAN Generation
The next major facility introduced by EPFO is Bulk UAN Generation. Employers can now generate Universal Account Numbers in bulk for their employees.
Key highlights are:
- No need for the employees to complete Aadhaar seeding at the time of UAN generation.
- Employers can register many employees in quick succession without delays for any individual employee.
- This will ensure speedier onboarding and compliance.
- This is in tandem with EPFO’s larger objective to provide greater convenience digitally and lesser manual intervention for both employers and employees.