Employees Provident Fund (EPF) is the retirement savings scheme run by EPFO for employees receiving all salaries. Employees Provident Fund Organization allows employees of institutions with 20 or more employees to invest in PF.
Under the EPF scheme, an employee has to contribute 12 percent of his Basic Salary, as well as the contribution from the employer as well. After retirement, the employee receives a large amount of interest along with the pension under EPS.
A member of the EPFO becomes eligible to get pension under the EPS after contributing to the fund for 10 years. It is therefore advisable to the employees that instead of closing the old EPF account, transfer your old EPF account to the new employer after changing the job.
The EPF member is given a 12 digit number, which is called the UAN. Issues the EPFO to the UAN. EPFO allows automatic transfer of EPF account on job change. After leaving the job the EPF account becomes inactive. In this scenario, the interest that is deposited in your old EPF every year. If you do not withdraw money from the account, then the account becomes taxable.
How do the Transfer :- To transfer the balance from the old EPF account to a new place, you need to log in to the EPF account using your UAN and password. Go to the ‘Online Services’ drop-down and select ‘One Member One EPF Account Transfer Request’. Enter your UAN or old EPF member ID once again and your account details will appear. Now choose whether you want to validate the transfer to your current or previous employer. Now select the old account and generate one-time password (OTP). Once you enter OTP, a request for the online transfer process will be sent to your employer. Form 13 for offline transfer will be filled.