New Delhi, Aug 11: Employees’ Provident Fund or PF account will be transferred automatically from next month when he or she changes job, said chief provident fund commissioner V P Joy. Aadhaar card has been made mandatory for enrollment and an employee doesn’t need to close the existing PF account. The worker can retain the same FP account for social security after switching job.
“Whenever there is a change of job, a lot of accounts are closed; then they (the employees) restart their account later on. Now we have made Aadhaar compulsory for enrollment. We don’t want accounts to be closed. The PF account is the permanent account. The worker can retain the same account for social security,” Joy was quoted as saying by Times of India. The chief provident fund commissioner has been pushing a slew of initiatives in the Employees’ Provident Fund Organisation (EPFO) to make it more worker-friendly.
Adhaar card will be used for verification and the money will be transferred in three days. “We are trying to ensure transfer of money if one changes jobs, without any application, in three days. In future, if one has an Aadhaar ID and has verified the ID, then the account will be transferred without any application if the worker goes anywhere in the country. This system will be in place very soon,” Joy further said.
They are also running a campaign to educate workers that money from PF account should be withdrawn for important works like housing, education of children, or serious hospitalisation. “…Only then will people get social security. So, we are now starting a campaign…to educate people that money must be withdrawn only for essential purposes,” Joy said.
Provident Fund provides an employee with lump sum payment at the time of exit from the organisation. The EPFO recently launched an online system to facilitate transfer claims and withdrawals by its members. Using the system, an employee can transfer his or her provident fund (EPF) balance with the previous employer to a new employer or can make a partial/complete withdrawal of his PF balance with ease.
