I have multiple PF accounts under one UAN. How should I transfer the amount to my current employer? Also, how many days does EPFO take to transfer that amount under one PF account? Is there any benefit to transferring all amounts under one PF account? Please explain
Reply by Aarti Raote, Partner, Deloitte India
One of the foremost concerns for employees switching jobs is the transfer of their Employee Provident Fund (EPF) from their previous employer to their current one. The EPF account comprises a substantial part of an employee’s savings, hence it is important to understand the duration it takes for the transfer of funds between accounts.
To begin with, the EPF is a government-regulated retirement benefits scheme, where both the employee and employer contribute a certain percentage of the employee’s basic salary and dearness allowance, if any, every month. In the event of a job change, the accumulated corpus can be transferred to the new employer, ensuring continuity of the retirement savings account.
There are several benefits of transferring the PF balance from one account to another under the same UAN.
Read More: Do you have more than one EPF account UAN? Simple steps to merge multiple Universal Account Numbers
It provides multiple benefits like compounding interest and tax breaks for continuing the same account over 5 years.
The tax benefits on withdrawal are available if the employee has been an active member for 5 years or more. Thus, transferring the PF account from one employer to another is advisable. Apart from this, managing the account and withdrawal is a lot easier.
For transfers, you can submit an online request for transferring your old/previous employer’s PF account to your current employer’s PF Account through the Member e-Sewa portal of the Employees’ Provident Fund Organisation (EPFO).
Once your employer approves the request, the merger process will be initiated. Generally, the process will be completed in 3 to 6 weeks.
Read More: This Insurance Scheme By EPFO Offers Up To Rs 7 Lakhs To Nominees Of Deceased Employees
Overall, the transition process has been made seamless with the advent of digital channels. However, one should keep tabs on the entire process to ensure its smooth completion. It is always advisable to regularly reconcile your EPF statement, to be certain of its accuracy and to avoid last-minute hassles.
