Whether it is withdrawing your provident fund (PF) or waiting for it to transfer when you switch jobs—the process is complex.
But now, with the initiation of automatic transfer of PF accounts from September, the process will get simplified as soon as your change your job.
According to Chief Provident Fund Commissioner V. P. Joy, this is one among the many initiatives pushed by Employees’ Provident Fund Organisation (EPFO) inching towards an employee-friendly sphere.
“From next month, your PF account will be transferred automatically when you change your job,” he told TOI.
Joy also explained that the organisation was trying to put an end to the challenge of premature account terminations through an upgradation of services.
“Whenever there is change of job, a lot of accounts are closed; then they (the employees) restart their account later on,” he added.
Under the new provision, the PF account can be retained as a permanent one for social security and need not be closed. However, the enrolment for the provision will be mandated only through Aadhaar.
The plan is to ensure transfer of money in three days after one changes their job, without the need for filling an application form. This is irrespective of where an employee chooses to work in the country. According to Joy, the Aadhaar ID powered system will soon be in order.
You can reach out to EPFO for more details here.