New EPFO rule effective from today: Know what has changed
The Employees' Provident Fund Organization (EPFO) has introduced changes to its regulations, effective from April 1, aimed at simplifying the process of Provident Fund (PF) transfers. With the new rule, when you change jobs, your old PF balance will automatically be transferred to the new employer. This eliminates the need for EPFO account holders to manually request PF transfers upon joining a new company.
Universal Account Number facilitates online PF transfers
The Universal Account Number (UAN) plays a crucial role in enabling online PF transfers. It serves as a unified platform for multiple Member IDs issued to an individual by different employers. The UAN offers several services including an updated PF passbook with all transfer-in details, monthly SMS notifications about contributions credited to the PF account, and automatic transfer request initiation when changing jobs.
Industry experts praise EPFO's new transfer process
Ashish Aggarwal, Director of Acube Ventures, has praised the changes implemented by the EPFO. He stated that the elimination of "troublesome procedures" such as manual requests and administrative tasks will ease transitions for employees. Aggarwal noted these reforms highlight EPFO's commitment to supporting workers by providing hassle-free access to their saved funds and ensuring a secure retirement journey.
EPFO witnesses surge in subscribers in January 2024
According to provisional payroll data released by the Ministry of Labour, the EPFO saw a significant increase in subscribers by 16.02 lakh in January 2024. The data suggests that approximately 8.08 lakh members were new joinees, indicating a positive response to the organization's efforts to simplify PF transfers and enhance user convenience.