April 1 marks the beginning of a new financial year in India, accompanied by revisions to savings plan regulations. Starting this date, the Employees’ Provident Fund Organization (EPFO) will implement significant changes. Under the new rule, when an individual switches jobs, their old Provident Fund (PF) balance will be automatically transferred to the new employer. This eliminates the need for EPFO account holders to manually request PF transfers upon joining a new company, a process that was previously required despite having a Universal Account Number (UAN).
“As many cumbersome procedures are left behind, employees will no longer endure the hassles of manual requests and administrative tasks. With a streamlined process, it will be simpler to transition employees from one department to another,” stated Ashish Aggarwal, Director of Acube Ventures.
This reform by EPFO demonstrates their commitment to supporting workers by providing hassle-free access to their saved funds, making the retirement journey smoother and more prosperous.
According to EPF regulations, employees are required to contribute 12% of their monthly basic salary, with employers mandated to match this contribution.
The Universal Account Number (UAN) plays a crucial role in the online transfer of PF, serving as a centralized platform for multiple Member IDs issued to an individual by different employers. It enables the linking of several EPF Accounts (Member IDs) to a single member and offers various services, including a dynamically updated UAN card, an updated PF passbook with transfer-in details, monthly SMS notifications regarding PF contributions, and the option for automatic transfer request initiation upon changing employment.
EPFO Records Addition of 16.02 Lakh Members in January 2024
In January 2024, the EPFO witnessed a surge of 16.02 lakh subscribers, according to payroll data disclosed by the Ministry of Labour. Approximately 8.08 lakh members were newly enrolled during this period. The provisional payroll data from EPFO indicates a net addition of 16.02 lakh members in January 2024, as highlighted by the ministry.
