Interest rate on PF deposits is 8.15% for FY 2022-23.
Once an individual starts his career by taking up employment in any of the PF registered organization, an employee would be registered for PF purpose and both employee and employer contributions to employee’s PF and the fund earns interest till withdrawal. Further, it is not uncommon especially in early or mid-years of the career, to switch job for various reasons with or without break. In such scenarios, what happens to the PF account of the employee already created with the previous employer? The employee will have two options in such cases.
As already mentioned, in order to make it an ideal saving for retirement it is always better to transfer the PF balance instead of withdrawing. This is also advisable from the tax standpoint as withdrawal of PF within 5 years of continuous service attracts tax.
The Employees’ Provident Fund Organisation (EPFO) has been taking several measures to simplify the operation of EPF account both for employer and employees. Keeping up with technology revolution, EPFO is also striving towards making all the process related to EPF electronic, more specifically PF transfer and withdrawal of PF which are generally tedious and time-consuming. EPFO introduced Universal Account Number (UAN), which acts as an umbrella for the multiple Member Ids allotted to an individual by different employers. UAN enables linking of multiple EPF Accounts (Member Id) allotted to a single member. UAN offers a bouquet of services like dynamically updated UAN card, updated PF passbook including all transfer-in details, facility to link previous members’ ID with present ID, monthly SMS regarding credit of contribution in PF account and facility for auto-triggering transfer request on change of employment.
While the PF transfer was possible online earlier under ‘Online Transfer Claim Portal’, with the introduction of UAN, the process of transfer is revised and shifted under ‘unified portal’. However, in order to make online PF transfer, please ensure the following:
Now we know that PF transfer can be made online and above criteria need to be fulfilled. Let us understand the procedure step by step with the help of screenshots:
Step 1:Login to Unified portal (member interface) by using your credentials i.e., UAN number and password
Step 2: After login, click on ‘One Member – One EPF Account (Transfer Request)’ under Online Services
Step 3:Verify personal information and PF account for present employment:
Step 4: PF account details of previous employment would appear on clicking on ‘Get details’ below.
Step 5:You have the option of choosing either your previous employer or current employer for attesting the claim form based on the availability of authorized signatory holding DSC. Choose either of the employers and provide member id/UAN:
Step 6: In the next step, click on ‘Get OTP’ to receive OTP to UAN registered mobile number and enter the OTP and click on submit.
Step 7: Once you click ‘Submit’ you can see the Tracking ID and PF account details. Take a printout of ‘Form 13’ and sign it. This form must be submitted to the employer within 10 days of obtaining it.
Step 8: Your previous employer will review and approve the claim and forward it to the EPFO for approval and transfer of PF accounts. You will get an SMS when your employer and EPFO approve the transfer claim.
When an employee changes a job, it is better to transfer the old PF corpus to new PF account created by the current employer. EPF is a long-term investment backed by the government. Thus, it can be withdrawn in case of emergency. Transferring the balance of the PF account from the old to the new has the following benefits-
No, you cannot edit details like father’s name, DOB, date of joining, date of exit as available in EPFO database.
Yes, you require to take a printout of the claim submitted and give it to the employer after signing it.
You can request only one PF transfer against a previous employment member ID.
You can withdraw PF amount up to three times for emergency purposes.
EPF withdrawal is taxable only when it is withdrawn within 5 years of employment. However, if EPF is withdrawn after 5 years of employment, it is tax-free.
Yes. You cannot withdraw EPF at any time. Some conditions must be fulfilled to be eligible for PF withdrawal, such as the reason for withdrawal, employment tenure, the account holder’s age, etc.