New EPFO rules: April 1st signals the start of a new financial year in India, bringing along revisions to regulations governing savings plans. Starting April 1, the Employees’ Provident Fund Organization (EPFO) will introduce important changes. According to various media reports, with the new rule, when an individual changes jobs, their old Provident Fund (PF) balance will be automatically transferred to the new employer. This eliminates the need for EPFO account holders to manually request PF transfers when joining a new company. Previously, despite having a Universal Account Number (UAN), individuals had to go through the hassle of requesting PF transfers, which would no longer be necessary.
“As many troublesome procedures are put in the past, employees won’t have to endure the inconveniences of manual requests and administration chores. With a streamlined process, it’ll be easier to move different employees from one department to the other,” said Ashish Aggarwal, Director, of Acube Ventures.
Imagine the satisfaction of no longer having to worry about keeping track of your Provident Funds as you explore new professional opportunities without the fear of managing your PFs.
As per the Director, of Acube Ventures, this reform of EPFO manifests their will for the opportunity to support workers by the hassle-free access to his/her own saved funds. Moreover, it promises to make the retirement journey safe and prosperous.
According to EPF regulations, employees must contribute 12% of their monthly basic salary, with employers required to match this contribution.
Importance of UAN in the online transfer of PF
The Universal Account Number (UAN) serves as a centralized platform for multiple Member IDs issued to an individual by different employers. It facilitates the linking of several EPF Accounts (Member IDs) to a single member. UAN provides a range of services, including a dynamically updated UAN card, an updated PF passbook with all transfer-in details, the ability to link previous members’ PF IDs with the present PF ID, monthly SMS notifications regarding the credit of contributions to the PF account, and the option for automatic transfer request initiation upon changing employment.
EPFO adds 16.02 lakh members in January 2024
In January 2024, the EPFO, according to payroll data disclosed on Sunday, saw an increase of 16.02 lakh subscribers, as stated by the Ministry of Labour. Approximately 8.08 lakh members were newly enrolled during this period. The provisional payroll data from the Employees’ Provident Fund Organization (EPFO) indicates a net addition of 16.02 lakh members in January 2024, the ministry noted.
The article originally appeared on LiveMint.