Soon after you changed your job be it in the same city or outside, you must have been told from the human resource (HR) personnel of your new organisation to get the EPF (employee provident fund) transferred from the previous employer.
This is supposedly the standard procedure across organisations but not anymore. Thanks to the new employee-friendly policy rolled by the PFRDA (Pension Fund Regulatory and Development Authority), employees can expect an automatic transfer of their EPF account balance when they change their employer i.e., at the time of changing the job.
Let us explain this in greater detail here:
What are prerequisites for the automatic transfer?
The UAN (Universal Account Number) and aadhaar given by the new employer to PFRDA must be the same as what the pension fund authority has in their data. Additionally, the mobile number must be linked to the UAN.
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What is the Universal Account Number (UAN)?
UAN acts as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number. UAN is allotted to all the contributory members of EPFO.
What is the role of the previous employer?
The previous employer should inform the authority of the joining and date of exit of the employee.
Do you need to get the UAN activated
Yes, it is important that UAN is activated and the mobile number linked to it is also operational.
How does the transfer take place?
It starts as soon as the first salary gets transferred and the new employer has transferred PF contribution to the employee, the automatic transfer of EPF takes place.
What is the coverage of this transfer facility?
Only those provident fund (PF) contributions are covered which are under the EPFO’s umbrella, whereas the trusts that are exempted from provident fund are not covered under this.
