EPFO account transfer process: Employees Provident Fund Organization (EPFO) is continuously improving the PF facility for its members to make it easier and facilitated. All facilities ranging from checking the remaining amount to transfer the account are provided by the EPFO. However, if you change your company, it is necessary to transfer your old PF balance with the new employer, otherwise you may face many difficulties such as withdrawal and change in interest calculation.
No interest is received on the old PF account.
Whenever you join a new company, it is very important to transfer your old PF balance to the new employer. The main reason behind this is that only the old passive PF accounts get interest for only a few years. Interest stops when the deadline ends. Interest is received on old PF accounts for 36 months i.e. three years. If no contribution has been made to PF for three years, the account is deactivated. In such a situation, interest stops getting interest.
If PF is not transferred, there will be loss.
EPF is the country’s most trusted retirement savings scheme. In which you get good interest along with tax exemption. But if you do not transfer your old PF account to a new company after changing the job, then you may suffer a lot. You will not be able to take advantage of interest. This reduces your PF amount at the time of retirement. It can also affect your retirement. In addition, problems may also occur during PF withdrawal. First of all you will have to undergo an account an EPF process. In which you will be able to remove PF only after the application is approved.
You can transfer yourself.
With an increase in features by EPFO, employees can now transfer their old PF account to the new account. In which the transfer process has to be completed by logging on to the EPFO website. Please note that the Universal Account Number (UAN) does not change. Only the amount deposited in the account is transferred. After logging in, you have to click on online services. In which you have to click on the One Member-One EPF account and fill the details. The application will have to be submitted after verification of OTP later. This requires verification from your old and new employers.
No benefit of compound interest will be available.
Closing the PF contribution in the old account will not give the benefit of compound interest and if there is no Aadhaar, bank and PAN details updated in the account, there may be difficulty in withdrawal and other services.
