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India
07 Mar 2019

#FinancialBytes: What happens to EPF balance when you switch jobs?

Everything about EPF transfer process after changing job

The Employee Provident Fund (EPF), popularly known as Provident Fund, is a long-term investment instrument for the salaried individuals.

EPF is managed by the Employees' Provident Fund Organization (EPFO) and is an essential tool of retirement planning for employees.

However, a common question among EPF subscribers is what happens to their EPF balance if they switch their job.

Here's everything you need to know.

In context

Everything about EPF transfer process after changing job
What is Employee Provident Fund?

About

What is Employee Provident Fund?

The Employee Provident Fund is a corpus of funds built by employees and their employers through regular, monthly contributions to create a fund that can be used by employees after retirement.

Employees are required to contribute 12% of their basic pay+dearness allowance+retaining allowance towards EPF and an equal contribution is payable by the employers too. The EPF interest rate for FY 2018-19 is 8.55%.

Options

What exactly happens to EPF when you change jobs?

When individuals change their job, they can either withdraw their EPF balance or transfer it to the EPF account created by their new employer.

However, their UAN (Universal Account Number) remains the same; new EPF account is opened under the same UAN.

However, if the new employer has created a new UAN, individuals can withdraw the old EPF balance.

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Employees can merge old and new UANs too

If a new UAN is created by the employer, individuals can withdraw their old EPF account balance two months after changing the job. They would also have an option to merge their different UANs and then transfer the old account balance to the new one.

How can employees transfer their EPF balance online?

Online procedure

How can employees transfer their EPF balance online?

EPF balance can be transferred to new account online or offline. For online transfer, individuals should log in to UAN Member Portal. They must have activated their UAN and linked it with their Aadhaar.

After entering UAN/password, select "Online Services", click "Transfer Request", provide old EPF account/Member ID. Next, they should send the EPF for digital attestation, provide required details, authorize OTP, and submit.

Approval

Self-attested copy of transfer request should be submitted to employer

After submitting the online request for EPF transfer, a tracking ID would be generated that can be used for tracking the status of the request.

Individuals will have to submit a self-attested copy of the online EPF transfer request to the selected employer in 10 days. After the employer's approval, the old EPF balance is transferred to the new account.

What about the offline procedure?

As per the latest rules, for offline EPF transfer request, employees should fill the composite F-11 form while joining the new company and give a declaration about their old EPF account. The old balance will then be transferred into the new EPF account.

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Most asked questions

How to merge two PF accounts?

How to check my Employee Provident Fund balance?

When can employees withdraw their EPF balance?

How can I deactivate my EPF account?

How many days does it take to withdraw money from PF?

More questions

How to merge two PF accounts?

Asked on 07-03-2019 by Rajeev Shishodia

Answered by NewsBytes

To merge more than one existing PF accounts, visit the EPFO website and under 'Our Services' tab, click on 'For Employees'. Now under 'Services' section, click on 'One employee - One EPF account' option. You'll be redirected to a news page where you will have to fill the form using current member ID. You'll get the account merger facility three days after form submission.

How to check my Employee Provident Fund balance?

Asked on 07-03-2019 by Harini Tambe

Answered by NewsBytes

Employees can check their EPF balance in several ways. One can check the balance by visiting the EPFO website, EPFO's m-Seva app, the government's UMANG mobile app, through SMS by sending "EPFOHO UAN ENG" to 7738299899 from their registered number, or give a missed call on 011-22901406.

When can employees withdraw their EPF balance?

Asked on 07-03-2019 by Devansh Mehta

Answered by NewsBytes

Employees can withdraw their entire EPF balance either when they retire from employment after turning 58 or before reaching that age in case they remain unemployed for at least two months. They can also withdraw the balance partially (under some circumstances subject to certain conditions) for marriage, purchase of land/house, repayment of home loan, house renovation, or after turning 57.

How can I deactivate my EPF account?

Asked on 07-03-2019 by Rishika Singhal

Answered by NewsBytes

You can deactivate your EPF account by following this procedure: Report the matter to your immediate employer or to the EPFO through uanepfo@epfindia.gov.in. In the mail, mention your current UAN and after the verification process, it will be deactivated.

How many days does it take to withdraw money from PF?

Asked on 07-03-2019 by Dhruv Bhatnagar

Answered by NewsBytes

The PF withdrawal is basically categorized into three types: (1) PF final settlement, (2) PF partial withdrawal, (3) Pension withdrawal benefit. It takes about 1-2 weeks to withdraw the money from your PF account.

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