According to the sources EPFO is introducing a new scheme of automatic transfer within 3 days. After the implementation of this scheme an employee will no longer have to transfer their Employee Provident Fund Account.
The Employees’ Provident Fund Organization (EPFO) is pondering over the option of introducing automatic EPF transfer if he / she change their job.
Contribution to the EPF Account – In EPF account, every salaried person contributes a certain portion from their salary to their EPF account along with the same amount of contribution by their employer. The contribution then compounds at a rate declared by the EPFO every year. At present, the rate of interest is 8.65% per annum.
Features of New EPFO Scheme i.e. Automatic Transfer Scheme
- Easy Hassle – Free process
The new automatic transfer scheme is going to be very convenient for the employees as the account will be transferred automatically which does not even required an application.
- Linking PF Account with Aadhaar
As Government of India has mandated the 12 digit Aadhaar card to be linked with almost every other document, this linkage can save your PF account from duplicity. Also, in order to register with the unique identity number, the transfer of an employee’s account is simpler.
Though Government have declared in Aadhaar Privacy Case that “privacy is a fundamental right”, it is yet to see if it effects on linking Aadhaar with PF.
To know more about the Aadhaar Privacy Case read: Verdict of Aadhaar and Right to Privacy Case https://rupeenomics.com/verdict-aadhaar-right-privacy-case/
- Tracing Old Accounts
As there were lot of errors at the administration level, the employees mostly choose to withdraw their PF account.
It was also made it clear by the Employees Provident Fund Organization that an employee can withdraw their PF account only if they are unemployed for three – months or if they are retiring.
However, the authorities have introduced Universal account Number (UAN) which will find a way for the unclaimed PF accounts as the process is being worked upon to be less tedious.
UAN was introduced by the EPFO for a quick and hassle free transfer of PF accounts. With the introduction of the Universal Account Number an employee can simply transfer their PF account from one organization to another by providing the UAN number to the new employer.
To read on UAN activation you can also read: How to activate your UAN