New Delhi: Subscribers of Employees Provident Fund Organisation (EPFO) will not be required to file Employee Provident Fund (EPF) transfer claims when one changes his/her job from the next fiscal year as the process would be made automated, stated a labour ministry official.
“The EPFO is testing the automation of EPF transfer on changing jobs on a pilot basis. The facility for all subscribers is expected to be launched any time next year,” a senior labour ministry official said.
The official further said, “The EPFO had engaged the C-DAC to study its operating systems to achieve the goal of becoming a paperless organisation. At present, 80 per cent of the work is being done online. The automated transfer of EPF on changing jobs is one of the tools to be used to achieve that objective.”
According to this, the moment the new employer would file the monthly EPF return including the Universal Account Number (UAN) of the new employee, the EPF contributions and interest earned on that would be automatically transferred.
Presently, the EPFO subscribers are required to file transfer of EPF claims on changing jobs despite having UAN. Apparently, the UAN account does not reflect the EPF contributions made during the subscriber’s previous job and interest accrued on that. One has to file an online claim to get credits of EPF contributions made during the subscriber’s previous job.
Post-filing an online claim, the employee gets the credits of his EPF contribution during his previous tenure with old employer into his or her UAN automatically.
The official added, “After the automation of the EPF transfer on changing jobs, the subscribers would be benefitted immensely as the UAN would be like a bank account. No matter a subscriber changes place or employer, his or her social security benefits would be accessed through the UAN. That would remain the same throughout his or her life.”
The EPFO gets about eight lakh EPF transfer claims every year.