Job changes are building blocks for your career growth and development. Each job change brings you better earning opportunities, learning opportunities, and advancement avenues. However, provident fund (PF) is one crucial aspect you should be mindful of when switching employers. Thankfully, the EPFO has introduced an online portal to facilitate digital transfers of old accounts to new ones, simplifying the cumbersome process.
In this article, we discuss how to transfer PF online and understand the documents, eligibility requirements, and benefits.
Why transfer your PF
When changing jobs, employees can choose to close their old PF account and open a new one or transfer the old account to the current employer. It is wiser to pick the latter option since PF is aimed at creating a stable income source in your retirement years. Intermittent withdrawals impact your savings corpus. Learning how to transfer your PF account from one company to another is also essential to enjoy continuous benefits.
Withdrawing your PF contributions within the first 5 years of continuous service can attract tax implications and compromise your retirement planning. Transferring your PF account also ensures you don’t lose out on your years of service and contributions. Additionally, you also get to keep the tax benefits alive. In other words, you can keep earning the tax deductions on PF contributions u/s 80(C) at the new company.
Required documents to submit an EPF transfer online
When researching how to transfer an EPF account, it is important to understand the set of documents and information needed to complete the transfer. Here’s a comprehensive list you should keep handy:
- Universal Account Number (UAN)
- ID proof (Aadhaar Card/PAN Card/Driving License)
- Establishment number
- Old PF account details
- Form 13
- Bank account details of salary account
- Current employer’s details
How to transfer EPF online/step-by-step process at EPFO portal
Here’s a step-by-step guide on how to transfer EPF online from one account to another:
- Go to the official EPFO website and log in using your UAN and password.
- Click on the ‘Online Services' tab.
- Select the ‘One Member - One EPF Account (Transfer Request)’ option.
- Meticulously verify your personal information and PF details for the present employer.
- Click on ‘Get Details’ to review PF details from the previous employer.
- Based on DSC availability, choose your current or previous employer to attest the transfer claim form.
- Click the ‘Get OPT’ option and submit the OTP that is sent to your registered mobile number.
- Save the tracking ID for status tracking.
- Print and sign Form 13 and submit it to the employer within 10 days.
- Your employer will verify the transfer request and forward it for approval to the EPFO for the transfer.
Note: Starting April 1st, 2024, the EPFO will automatically transfer the old PF balance to the new employer each time the member switches jobs.
Eligibility conditions
Now that you know how to transfer Provident Fund from one company to another, it is time to shed light on the eligibility conditions you must meet to initiate such transfers:
- Active UAN: You should have activated your Universal Account Number on the EPF portal. The mobile number linked to the UAN should also be active.
- KYC details: Your KYC details, like Aadhaar and PAN Card, should be seeded and verified with the UAN.
- Bank details: Employer-verified banking details like your account number and IFSC code must be linked to your UAN.
- Service tenure: EPF transfers are permitted online only if you have worked for the current employer for at least 3 months.
- Existing EPF account: You must have an existing EPF account (linked to your UAN) with the new employer.
- DOJ and DOE: The Date of Joining and Date of Exit should be mentioned on the portal, along with a valid reason for exit (eg. changing jobs or relocation).
Note: EPFO only accepts one transfer request against a previous member ID.
How to check the status of PF transfer
Apart from learning how to transfer PF online from one company to another, it is also essential to understand how to check the transfer status online:
- Visit the EPF member portal
- Log in using your UAN and password
- Go to the ‘Online Services’ tab and click on ‘Track Claim Status’
- Review your claim status displayed under the ‘Transfer Claim Status’ option
An ‘Accepted by Employer’ update will be displayed on this screen once the transfer request is approved by the employer.
Benefits of transferring PF online
Understanding how to transfer an old PF to a new PF account can help you avoid withdrawals. Transferring PF online brings you the following benefits:
- Simple and easy: Online PF transfers are simple and easy since they can be initiated from the comfort of your home without the hassles of visiting the EPFO office.
- Fund consolidation: Transferring your old account to a new one consolidates your EPF savings in one account, making it easier to manage and track retirement savings.
- Service continuity: EPF transfers also transfer your past service years, contributing to service continuity. Continuous years of service are essential for enjoying certain EPF benefits like withdrawals with TDS and pension benefits. For instance, if you maintain your PF account for 5 years, you become eligible for tax-free withdrawals.
- Interest earnings: EPFO offers compound interest on your PF balance. If you withdraw instead of opting for a transfer, you stand to lose out on higher interest earnings.
- Transparent tracking: Learning how to transfer PF helps you not only simplify the request filing process but also the tracking process. You can easily check the status of your request online via the EPFO website or member portal.
- Pension benefits: Employees who contribute to the same EPF account for 10 years become eligible for pension benefits after attaining 58 years of age. You lose out on this benefit if you close your account, withdrawing the sum every time you switch jobs.
Conclusion
Understanding the nuances of how to transfer your PF from one company to another is a great way to safeguard your retirement corpus, enjoy tax benefits, and easy fund management. The online transfer facility offered by the EPFO has simplified the process to make it super convenient for us digital natives.
You can complement your PF earnings with highly secured interest returns of up to 8.85% p.a. with a Bajaj Finance FD. With flexible interest payout options, you can maintain easy liquidity while letting your corpus grow.
