PF Transfer Online

Introduction:

Employee Provident Fund (EPF), more commonly known as Provident Fund (PF), is a retirement benefits scheme in which a part of the employee’s salary is deducted, collected, and compounded over a period of time. This scheme is put in place by the Employee Provident Fund Organisation of India, also known as EPFO, for all salaried employees working in a corporate organization.

The scheme is set up with the goal of keeping the employees financially independent even after they retire, or in situations where they aren’t able to work anymore, by accumulating a sizeable fund for the employees during the course of their working tenure.

Both, the employees as well as the employers, contribute part of the salary every month towards the accumulation of the Provident Fund. The scheme has been made mandatory for all corporate organizations having a minimum of 20 employees.

But what happens to the accumulated provident fund if you change your job? What if the new job is in a different city altogether? Should you close the previous PF account and open a new one? Can the PF be transferred online? These and many other frequently asked questions about the provident fund are answered in this blog. Read on till the end to learn how to navigate the intricacies of how to transfer PF online.

The Basics:

So, let’s understand the basics of the Provident Fund (PF) first –

Each employee gets a unique number associated with his/her PF account. This is called the Universal Account Number (UAN) and is allocated by the EPFO.

Your UAN number and your PF number are not the same. PF number is a combination of either numeric or alphanumeric codes (depending upon the type of the organization) given by an employer to the employee working in his establishment. The PF number changes as you change your employer.

In contrast, the UAN number is a 12-digit employee-specific number and stays the same regardless of the change in employment over the employee’s working lifespan. An employee cannot have more than one UAN number.

Is it possible to transfer PF online?

Yes. Through its online portal, the EPFO has made it possible for employees to transfer their old EPF accounts to the new one. The employees must follow a few steps of filling in some details and uploading necessary documents. This helps the employees to transfer PF online with the convenience of place and time.

Why should you transfer your PF: The Benefits of Transferring PF online

The most common mistake employees make while changing jobs is that they withdraw the funds from the PF account of the previous employer and start afresh with a new PF account with the new employer. This is not advisable because:

• The PF accounts get compounded rate of interest as set by the EFPO. This means that you would reduce the interest earned and will have to start from scratch every time you close and open a new PF account, nullifying the benefits of compounding.

• You will be charged TDS (Tax Deductible at Source) if you withdraw the funds from the PF account before completing 5 years of work tenure. Transferring the PF accounts enables you to continue with the PF account and maintain it for more than 5 years making you eligible for tax-free withdrawals.

• Employees can avail of pension after the age of 58 provided that their EPF account is more than 10 years old. Opening and closing PF accounts with every job change makes this impossible.

The pre-requisites of transferring PF online

Before you transfer your PF online, there are a few eligibility criteria that need to be met. These are:

• The employee must have an active UAN. If you haven’t activated your UAN yet, you can visit the EPF portal to activate it (EPF portal link: https://unifiedportal-mem.epfindia.gov.in/memberinterface/)

• The mobile number that the employee used for the activation of the UAN should also be active.  

• The UAN must be linked with the employee’s Aadhaar card

• The employee must also have linked his bank details including IFSC. These details must be verified by the employer at the time of the transfer request.

• The employee’s previous and new employers must have registered authorized digital signatures.

• The EPFO accepts only one transfer request against one member ID

• The employee must also mention his Date of Joining (DoJ) and Date of Exit (DoE) along with a reason for his exit on the portal.

How to transfer PF online: A stepwise guide for the employees

To transfer PF online, follow these steps on the EPF portal –

• Click on https://unifiedportal-mem.epfindia.gov.in/memberinterface/Login with your UAN and password. This will get you into your EPF account.

• In the ‘Online Services Section’, click on ‘One Member – One EPF Account (Transfer Request)’

• Verify your current PF account details and your personal information

• Next, click on ‘Get Details’. This will open your PF account details from your previous employment

• Here, you get an option of choosing either your previous employer or current employer for attesting the claim form based on the availability of an authorized signatory holding DSC. Choose either one of the employers and put in your member ID or UAN in their designated fields

• Click on ‘Get OTP’. This will send a text message containing the OTP on your registered mobile number.

• Input the OTP in the space provided and click on ‘Submit’

• Once you hit the ‘Submit’ button, an online pre-filled PF transfer form will be generated. You will have to self-attest it and submit it in a PDF form to the employer you choose previously

• The employer will need to approve the PF transfer request online/digitally after receiving the notification

• Once the employer approves the PF transfer request, the PF amount is transferred to the employee’s new account with the new employer

• A tracking ID will also be generated that will help you in tracking the status of your application online

You Will Also Need:

The employee also needs the following forms for transferring PF online. These are –

• FORM 13

• Provident Fund Transfer Form

Conclusion:

The EPF is a government-backed retirement scheme that also allows for a pension after retirement if the necessary criteria are met. It is recommended that the employee must transfer his PF accounts along with the change in his job rather than closing the PF accounts every time to maximize the benefits of the PF scheme. The EPFO has made it extremely easy for employees to transfer PF online to eradicate place and time restrictions.