Centralized System / EPFO's Big Announcement: No need to transfer PF account if you change jobs now, new rule has come.
A big announcement was made on Saturday at the board meeting of the Central Board of Trustees of the Employees Provident Fund Organization (EPFO). The meeting decided that the centralized IT system of the Provident Fund (PF) account would be approved.
Big announcement from Employees Provident Fund Organization (EPFO)
No more transfer to PF account on job transfer
The work will be done with a centralized system
This means that if an employee changes jobs or joins another company, there will be no hassle of transferring PF account. This work will be done automatically. The employee's account will be merged with the help of centralized system. Yet the rule is that when an employee leaves one company and moves to another, he withdraws the PF rupee or transfers it to another company. Yet this transfer work will be done automatically.
What is the current rule?
For this the old and new company have some paper formalities that have to be completed. Some people leave PF money in older companies because of this paperwork. The new company becomes the second PF account on the previous UAN. But this PF account does not show full balance as the employees could not merge the old account with the new one. Now this mess will be over.
What will change?
However, centralized system will be created by merging different accounts of PF account holders. The hassle of merging these accounts will be eliminated and the employee will be able to avoid some kind of paperwork. The decision was taken at the 229th board meeting of the EPFO chaired by Union Minister Bhupendra Yadav. The EPFO's Central Board of Trustees is considering a number of issues. With the increase in interest rate of PF, the minimum pension amount for pensioners is likely to be increased from Rs.1000 to Rs.3000.
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