You can easily initiate a provident fund transfer online on the EPFO portal, which you may need to do if you switch jobs. If required, your employer will register you on the Employees Provident Fund Organisation (EPFO) portal. As per the regulations, both you and the employer contribute to your account to build a corpus for retirement.
While you can withdraw the invested sum in your EPF, opting for a provident fund transfer is always better to build a substantial corpusfor retirement.
To know more about the PF transfer procedure and why it is significant, read on.
When you are employed by a PF-registered employer, the company will open your Employee Provident Fund account. Both you and the employer contribute 12% of your gross salary into this account, which earns interest. This helps you accumulate funds, which you can use during retirement or during other times of need.
However, when you leave a job, you have two options with respect to your EPF account and savings:
Retaining your EPF membership by following the PF transfer online process is advisable because it allows you to build a good corpus for the future. Retaining your account is also advisable from a taxation standpoint, as you will have to pay the tax deducted at source (TDS) if you withdraw the EPF amount without completing 5 years of service with the current employer.
Also Read: Check your EPF Balance Online
To complete the provident fund transfer online, ensure that you have the following documents ready and complete the prerequisites:
To complete the PF transfer online process, you need to follow these simple steps:
Once your previous employer approves the claim and sends it to EPFO authorities for approval, your provident fund transfer will be completed in a few days. As mentioned above, you must refrain from withdrawing the PF amount when switching jobs and instead complete the PF transfer procedure.
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You can complete the employee provident fund transfer online through the EPF Member portal. All you have to do is fill out a Composite Claim Form to apply for the EPF transfer when switching jobs.
There can be several reasons why your provident fund transfer could have failed. For instance, your application does not have a signature from the previous employer. There can be other reasons, like your UAN may not be linked on the EPFO portal, your KYC details may not be verified on the EPFO portal, etc.
When you leave a job, you can withdraw the EPF amount and settle your account if you don’t join another job after 2 months. However, if employed, you can also opt for a provident fund transfer to keep your savings intact and continue your membership.
When you switch jobs, you can close your current EPF account and open a new account with the new employer. On the other hand, you can complete the provident fund transfer online process to transfer your funds and keep your EPFO membership.