Employees Provident Fund Organisation (EPFO) handling over 17.14 crore members (2015–16) is one of the largest social security organizations. But how does it matter to us? Investing in EPF is a good idea because here 12% of basic salary of employee’s and employer’s contribution goes to EPF account earning interest to the subscriber / employee exempted from taxes which later possesses various benefits including lifelong pension.
So what’s in it at present? Up until now, when employees/EPF subscribers switch their jobs, they are supposed to manually file their EPF transfer. Failing to do this may cause one to lose interest earnings because it will be declared as an inactive account due to no contributions. To prevent this, you must file your transfers without fail. And yes! One can understand the pain behind this task.
However, there’s good news for you! “Post this year (next FY), the transfers of your EPF accounts would be automated”, says EPFO. Now, no more filing through online for your EPF earnings made in the previous job. Sit back and enjoy!
EPFO (Employee Provident Fund Organisation) is currently testing this procedure on a trial basis. If passed and everything goes as planned, the automated procedure will be launched by the next fiscal year for actual subscribers. As a result, the extra burden on job-hoppers due to these silly activities will be eliminated and thus, can concentrate on their career.
The only thing employees need to take care of is-
Employees when switching their job just need to look back and verify whether their EPF account is linked with their Aadhaar number and bank details are seeded or not. If both are done, then you may easily claim online submissions after you change jobs, carry out withdrawals and much more. Once done, this remains the same throughout the employee’s service tenure.
What are the benefits?
- Improved interest returns on EPF
- Improved pension eligibility — min. 10 years of PF contribution for claiming as of now (MARCH ‘19)
- Burdens eliminated off subscribers
Disclaimer: All the information, views and opinions expressed in this write-up are those of the authors and their respective web sources and in no way reflect the principles, objectives or views of Pocket HRMS.
Sources: live mint, Business Today, NDTV Profit.