Streamlining PF Transfers: EPFO's New Simplified Process

The EPFO has simplified PF account transfers by removing the need for employer approval in most cases. A new form 13 software functionality allows direct transfers between accounts, aiming to benefit 1.25 crore members. Bulk UAN generation and improved processing measures promise better service and reduced grievances.

The Employees' Provident Fund Organisation (EPFO) has announced a simplified process for transferring Provident Fund (PF) accounts following a job change, according to an official statement on Friday. In most cases, the requirement for employer approval has been removed, streamlining the experience for countless employees.

Previously, PF transfers involved coordination between two EPF offices: the Source Office and the Destination Office. The Ministry of Labour & Employment now states that a revamped form 13 software functionality will eliminate the need for transfer claim approvals at the Destination Office. Approved transfer claims at the Source Office will now lead to immediate transfers, easing the process for EPFO members.

This new functionality aims to improve clarity on taxable and non-taxable PF components for more accurate TDS calculations. Catering to over 1.25 crore members and facilitating an annual transfer of about Rs 90,000 crore, the changes will accelerate the entire process. Additionally, bulk UAN generation based on Member ID has been introduced, streamlining fund credits without needing Aadhaar verification but requiring it for operational activation.

(With inputs from agencies.)