EPF transfer on occupation change to become automated from next fiscal

Subscribers of retirement fund body EPFO would not require to record employee provident fund (EPF) transfer asserts on changing employments from the next fiscal as the procedure would be made automated, as per a labour ministry official. At present, the subscribers of the Employees Provident Fund Organization (EPFO) are required to file transfer of EPF guarantees on changing occupations regardless of having universal account number (UAN). The EPFO gets around eight lakh EPF transfer claims each year.

“The EPFO is testing the automation of EPF transfer on changing jobs on pilot basis. The facility for all subscribers is expected to be launched any time next year,” a senior labour ministry official said.

The official said, “The EPFO had engaged the C-DAC to study its operating systems to achieve the goal of becoming paperless organisation. At present, 80 per cent of the work is being done online. The automated transfer of EPF on changing jobs is one of the tools to be used to achieve that objective.”

The authority clarified that the moment the new employer would record the month to month EPF return including the UAN of the new worker, the EPF contributions and interest earned on that would be automatically transferred.

This will empower the worker to get the credits of his EPF contribution amid his past residency with old employer into his or her UAN naturally.

At present in the wake of changing job, a subscriber gives his UAN to the new employer, who utilizes it for keeping his or her EPF commitments. In any case, the UAN account does not reflect the EPF commitments made amid the subscriber’s past activity and intrigue collected on that. The subscriber needs to record an online case through the enacted UAN to get credits of EPF commitments made amid his or her past activity.

The authority stated, “After the automation of the EPF transfer on changing jobs, the subscribers would be benefitted immensely as the UAN would be like a bank account. No matter a subscriber changes place or employer, his or her social security benefits would be accessed through the UAN. That would remain the same throughout his or her life.”