To increase your retirement savings, it is always preferable to transfer the PF balance rather than withdraw it. This is also tax-efficient because the withdrawal of PF within five years of continuous service is taxed.
Employee Provident Fund (EPF) is a retirement benefit system in India offered by Employees’ Provident Funds Organisation (EPFO). It’s a government-sponsored savings plan that helps employees save for retirement.
This system requires employees to deposit a portion of their monthly wage (typically 12 per cent of their base pay+dearness allowance) to their EPF account. Employers contribute an equal amount. Contributions to the EPF account receive a set interest rate decided by the government from time to time.
If you are changing your company and looking to transfer your PF from your old one to the new one, here is a step-by-step guide for you.
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Follow these steps:
- Sign in to your EPF account. You will need a UAN and password for that. Click HERE https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- In the ‘Online Services’ section, select the option ‘One Member – One EPF Account (Transfer Request)’.
- Carefully verify personal information and the current PF account data.
- Click ‘Get Details’ to obtain the PF account data for the prior employment.
- Depending on the availability of an approved signature with DSC, you can testify to the claim form with either your prior or current employer.
- Select one of the employers and enter your Member ID or UAN into the appropriate areas.
- Click the ‘Get OTP’ button to obtain the OTP to your registered mobile number. To validate your identity, enter the OTP into the supplied field and click the ‘Submit’ button.
- Next, an online PF transfer request form will be produced, which must be self-attested and sent in PDF format to your chosen employer. The employer will also get an online notification on the EPF transfer request.
- The employer then authorises the PF transfer request electronically. Once approved, the PF is moved to a new account with the present employer. A tracking ID is also created, which may be used to trace the application online.
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Why should one transfer PF to a new company account?
To increase your retirement savings, it is always preferable to transfer the PF balance rather than withdraw it. This is also tax-efficient because the withdrawal of PF within five years of continuous service is taxed.
What documents are required to transfer the PF online?
- Form 13
- Aadhaar card
- PAN card
- Bank account details
- Previous employer details
- Old and current PF account details
Read More: EPFO Extends Time For Employers To Upload Details Regarding Pension On Higher Wages
Things to consider while transferring PF online:
- Employees must ensure below things:
- Their UAN is active.
- Your bank account is linked to your UAN.
- KYC is verified.
- Both the employers (previous and current) have registered authorised digital signatures.
- PF numbers of both employments (previous and current) are saved in the EPFO database.
- Your registered mobile number is active.
