PF account switch now doable with out approval from employer, 1.25 crore members to be benefitted
EPFO Alert: The transfer is anticipated to profit over 1.25 crore members, facilitating the switch of round Rs 90,000 crore yearly.
To make provident fund (PF) account switch simpler on job change, retirement fund physique EPFO has eliminated the requirement of approval from an employer within the majority of instances. “Now, with an goal to additional simplify the method, EPFO has eliminated the requirement of approval of all switch claims on the Vacation spot Workplace by launching a Revamped Kind 13 software program performance,” it stated in an official assertion.
Until now, the switch of Provident Fund (PF) accumulations concerned two Staff’ Provident Fund (EPF) offices– the Supply Workplace, from which the PF quantity was transferred, and the Vacation spot Workplace, the place the quantity is lastly credited, the Ministry of Labour & Employment stated.
Henceforth, as soon as a switch declare is permitted on the transferor (Supply) workplace, the earlier account will robotically be transferred to the member’s current account on the transferee (Vacation spot) workplace immediately, furthering the goal of ease of dwelling for members of EPFO.
This revamped performance additionally gives the bifurcation of taxable and non-taxable parts of PF accumulations to facilitate the correct calculation of TDS on taxable PF curiosity.
It’s anticipated to profit greater than 1.
25 crore members facilitating the switch of round Rs 90,000 crore yearly, henceforth, as all the switch course of shall be accelerated, the ministry stated.
Additionally, a facility for the majority era of UANs based mostly on Member ID and different accessible member info has been launched to make sure immediate crediting of funds to members’ accounts.
To that impact, a software program performance has been deployed and made accessible to Discipline Workplaces by way of the FO Interface, enabling bulk era of UANs in such instances and accounting for previous accumulations with out the requirement of Aadhaar within the EPFO software.
Nevertheless, as a measure of threat mitigation to guard the PF accumulations, all such UANs can be stored in a frozen state and subsequently made operational solely after the seeding of Aadhaar.
All these measures are anticipated to considerably enhance companies for members and cut back long-standing grievances, together with additional streamlining of validations for auto settlement of eligible claims.
