According to a report in Times of India, the PF account will be automatically transferred from next month onwards whenever there is a change in job. As an initiative to make PF account more user friendly the EPFO has taken the step to transfer PF account automatically whenever there is a job change. This changes will become active from September onwards. The account as well as the money will get transferred from the employees previous organisation to the new one with the help of Aadhaar card within 3 days. The PF account ensures the social security of the workers. However it has been observed numerous premature closure of PF accounts due to change in job. Thus to ensure that the account retains its permanency this initiative was taken.
According to V.P Joy, the chef provident Fund Commissioner
Eligibility: For automatic transfer of Pf account an account holder should have an Aadhaar id and must have it verified. Further the EPFO has made it mandatory for all employees to link there Aadhaar with there PF account. This in turn will help employees to make withdrawal claims and pension claims in the future as this will help in linking host of other accounts like EPF account, pension account and bank account.
UAN: The government of India has introduced the Universal Account Number in 2014 which acts as the umbrella for multiple member id. The member while changing his or her job is simply required to provide the UAN number to the new employer.The number allows multiple portability of PF accounts.
The various visible perks of this new initiatives are
- Now the retirement plan will become more defined and established.
- Moreover there will also be a more defined contribution by the employer and also an increase in participation rates of employees
- Further it will not only save time of the employee but will also ensure less employee intervention.
- While the employer’s contribution to the PF account differs from one employee to another.For instance part time employees gets lower rates than full time employees.With the introduction of the automatic PF transfer employers are bound to contribute(even if less) towards employee’s PF account without any discrimination.
- The EPFO is a non profit organisation of India with the primary motive to enhance the retirement security of Indian workers.