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A centralised system okayed by EPFO’s board will enable merger of all PF accounts
In an employee-friendly move, the employees’ provident fund organisation (EPFO) has cleared the development of a centralised IT-enabled system by C-DAC, which will enable merger of all EPF accounts of its members and do away with the requirement of getting one’s account transferred in case of job changes.
In simple words, employees soon won’t have to worry about getting their EPF accounts transferred to their new organisations while changing jobs.
This centralised system will facilitate the de-duplication and merger of all PF accounts of members. It will remove the requirement of transfer of EPF account whenever a member changes jobs.
EPFO’s Central Board of Trustees (CBT) took this decision during their meeting, which was held on November 20, 2021.
As of now, if anybody changes jobs, then a new EPF account for that person is opened in the new organisation and the employee has to get his or her money – which is held in the EPF account created by the previous organisation – transferred to the new account.
This has to be done online on the Member Sewa portal of the EPFO if the employee’s Universal Account Number (UAN) is linked with Aadhaar. If UAN is not linked with Aadhaar, then the employee can get the money transferred to the new EPF account by submitting a form to the new employer.
According to a statement issued by the labour ministry after the board’s meeting on November 20, “approval was accorded for development of centralised IT-enabled systems by C-DAC. Post this, the field functionalities will move on a central database in a phased manner enabling smoother operations and enhanced service delivery. The centralised system will facilitate de‐duplication and merger of all PF accounts of any member. It will remove the requirement of transfer of account on change of job.”
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