Last updated on July 21st, 2017 at 04:02 pm
Provident fund (PF) or Employee Provident Fund (EPF) is a major mandatory savings scheme by the government. According to this, every government or private employees’ must contribute some part (usually 12% of your basic salary) off towards the provident fund. You can withdraw the amount in a lump sum on retirement or you can partially withdraw the amount anytime. Also, you may claim your PF online by logging to EPFO site http://www.epfindia.com/site_en/index.php . Then, you can also transfer your funds collected from one employer to another on changing your job. This scheme was mainly introduced such that post-retirement, people do not struggle financially and not dependent on others.
Your contribution towards provident funds starts right from your first salary. In the case of medical emergencies, education loan of children or marriage of children you can withdraw the amount partially. Also, proper reason must be provided for withdrawing the PF partially.
Why should you transfer your Provident Fund account rather than close it?
If you close your account before 5 years of activation the amount becomes taxable i.e you will receive the amount only after deduction of necessary taxes. You can withdraw the complete amount after 5 years. On transferring the account you can earn the benefits of the rate of interest from Employee Provident Fund Organisation (EPFO). Also, in the long run, this becomes a substantial sum due to the power of compounding.
What is UAN?
Earlier on leaving one company there was a huge amount of paperwork which followed. You had to fill several forms in order to avail the benefits offered to you by your previous company. Now, you can do everything online starting from claiming the PF to transfer of PF.
Universal Account Number (UAN) is a unique sequence generated by your first employer. This was introduced for all employees who joined after 2014. You can request your employer/HR to share your UAN with you. Also, if you have received only the PF number, you can apply for UAN online here. Usually, all government, as well as private companies, provide you with the UAN number. You may find your UAN number on your payslip itself.
How to transfer your EPF i.e. Employee Provident Fund Account?
Here is a step-by-step guide on how you can transfer your provident fund from your old employee to new one using your UAN. Ensure you have the UAN for the transfer from your old employee.
Step 1: Go to http://memberclaimstest.epfoservices.in/
Step 2: Login using your PAN number or any other identity. You should enter details such as PAN, Aadhaar etc and mobile number details of your previous employer.
Step 3: Check if your account is eligible for fund transfer. Search for your past employer by mentioning the state where you were employed and providing the establishment number.
Step 4: Click on check eligibility.
Step 5: It will show you if your account is eligible. If not, check the details again or contact your previous employer on the correct details. If yes, then you can transfer your PF on EPFO site.
Step 6: On the top of the page, find a tab called ‘Request for transfer of account’.
Step 7: Fill the PF transfer form (Form 13). It is divided into three parts- Personal information (personal details as well as details of your salary account), old PF account details, current PF account details. Fill all information correctly. Find the correct information from the HR of the company.
Step 8: Click on preview and recheck for all the details in your form.
Step 9: Then, enter the captcha and click on ‘I agree’ option.
Then it will initiate the transfer by submitting the form. You can also check the status of your transfer online. You can click on ‘know your status’ option on the site by clicking here.
Online transfer of PF has become very easy these days. Unlike earlier, you do not have to fill hundreds of forms and post it to the PF office. It is wise to transfer your PF and collect the money until required. With the fast changing world where people are changing jobs at a surprising rate, EPFO portal with the UAN has made the transfer of provident fund account easy and hassle free.
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