The Employee Provident Fund (EPF) is one of the most popular savings schemes launched by the Government of India. In India, EPF schemes are governed by the Ministry of Labour. It is the primary scheme established by the Provident Fund & Miscellaneous Provisions Act of 1952. This savings scheme is managed by the Employees’ Provident Fund Organization (EPFO).
This scheme aims to provide an individual with a sufficient retirement corpus. It instils the saving habit of money in salaried employees.
Did you know?
Employees' Provident Funds came into existence on November 15th 1951, after the Employees' Provident Funds Ordinance was passed. The Employees' Provident Funds Act of 1952 replaced it.
What Are Provident Funds?
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A PF, which stands for Provident Fund, is a vital and standard investment tool for any working professional. The government created this tool for salaried professionals in the private and public sectors. It is a fund pool created by saving a portion of your monthly salary and depositing this with the Employee Provident Fund Organization (EPFO). Individuals' and employers' contributions to the fund accrue interest every year. However, when changing jobs, the employer may require to transfer the PF account to the new EPF account.
Provident Funds (PF) are a government-sponsored retirement savings plan that aims to provide investors with financial security after retirement. An individual can open a PF account as a Public Provident Fund (PPF) or by the employer as an Employee Provident Fund (EPF), in which both the employer and the employee deposit a portion of their earnings.
Form Required for PF Transfer
Form 13 is required for transferring PF funds from one account to another. When salaried individuals join a new organisation covered by the EPF Scheme, they must complete this form to transfer their PF balance from their old account to the new one.
EPF Form 13
EPF Form 13 is a transfer form available through the EPF and can be obtained online or in person. To transfer the EPF account, complete the PF Form 13 and submit it.
Eligibility for PF Transfer
- Employees must ensure that their UAN and registered mobile number are active on the EPFO portal.
- The PF subscriber must sync their bank information, such as bank account details and IFSC code, confirmed by the company during the transfer request.
- The employee must fill in their Aadhaar information on the EPFO portal.
- On the portal, the PF participant should include their joining date and leaving date.
- The employee must also state the reason for leaving.
- Please remember that the EPFO portal only accepts one PF transfer request at a time.
- Now that users know how to move PF online, it's time to figure out what documents you'll need to make the process go as smoothly as possible. The required documents for the PF move online process are listed below.
Options for PF Transfer
There are mainly two methods for PF transfer:
Offline PF Transfer
- The offline PF transfer method requires the employee to complete the PF Form 13 with all relevant data and publish it to the current employer.
- The application will then be forwarded to the EPF office by the current employer. In turn, the EPF office will send the form to the previous employer for verification.
- The EPF office will transfer the balance from the previous account to the current one once the previous employer has confirmed and attested the application.
- Copies of the applicant's Aadhaar card or UAN are not required.
- The EPFO provides a UAN to each employee, which serves as a unique identification number in the case of multiple staff IDs for the same person.
Online Method for PF Transfer
Online Transfer Claim Portal (OTCP): The PF member does not need to submit their UAN, Aadhaar, or other records to use this convenient online portal. You can transfer your PF by trying to enter a few banking information and information about your employer.
One Employee, One EPF Account: The One Employee, One EPF Account policy was implemented to avoid confusion caused by multiple PF subscriber data. The EPFO intends to integrate all existing PF accounts into this initiative. This is accomplished by allowing PF members to submit multiple PF transfer applications.
Automatic EPF balance transfer: This method of PF transfer needs the subscriber's UAN and is only available when the PF account is being transferred from a new account. The subscriber is not required to do much during this process. The PF will be assigned when their new employer enters their UAN into the system.
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Employee Provident Fund
An Employees Provident Fund (EPF) operates per the terms of the Compensation Act of 1952. It applies to organisations with 20 or more staff. Other organisations, however, may voluntarily participate in this scheme. The organisation could either join a government-approved project, or the employer can form a trust and start their own PF scheme. The Commissioner of Income Tax (CIT) must officially approve all Known Provident Fund Schemes.
Documents Required for EPF Transfer
- Identity Verification (Aadhaar, PAN, or Driving License)
- Form 13 Revised
- Universal Serial Number (UAN)
- Number of Establishment
- Employer information (must be your current employer)
- Financial institution information
- PF account information (for both old and current accounts)
How to Fill EPF Transfer Form Online?
Step 1: Use your credentials to access the main website EPFO portal.
Step 2: After logging in, go to the 'Online Services’ tab and select the 'Each Member - One EPF Account (Transfer Request)' option.
Step 3: Carefully review all the information on the screen and enter the necessary PF account information whereby the funds would be transferred.
Step 4: Select 'Get Details' to view the account information for the previous job.
Step 5: Select 'Previous Employer,' then enter the last number ID and UAN.
Step 6: Fill out the EPF Form 13 online.
Step 7: A tracking ID will be generated, which can be used to track the application process.
Step 8: Make a copy of the form and sign it. The applicant must submit the above form within ten days of the date of procurement.
Step 9: The information on the form must be confirmed by both the new and old employers.
Step 10: Before the money is transferred to the new account, both employers must endorse the details on the form.
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Conclusion
In the middle of a person's career, switching positions between PF registered firms is common, but transferring PF rather than withdrawing it helps to ensure that the PF is protected. The fact that PF withdrawals made within five years of work are taxed is another crucial tax factor. All of the PF funds from prior jobs are collected in your UAN account under several member IDs. You won't need to waste time seeking your own money because of the EPFO portal.
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