“If you have to transfer your EPF balance from old to new company, it can be a daunting task. According to a survey, over 70% of employees are unaware of the process of EPF transfer. As Albert Einstein said, “Learn from yesterday, live for today, hope for tomorrow.” With this in mind, let us learn how to do EPF transfer from old to new company.
Definition of EPF
The Employees‘ Provident Fund (EPF) is a retirement savings scheme set up by the Indian Government to provide its citizens with a secure financial future. It is a form of social security for employees which is managed by the Employees‘ Provident Fund Organization (EPFO). EPF contributions are made by both the employer and employee, with the employee contributing 12% of their basic salary and the employer contributing 12% of the basic salary plus dearness allowance. The employee‘s contribution is deducted from their monthly salary and is deposited in the EPF account, while the employer‘s contribution is paid directly to the EPFO. The funds accumulated in the EPF account are invested in a variety of instruments, including government bonds and mutual funds. At retirement, an EPF holder can withdraw the accumulated funds, which are tax–free.
Benefits of EPF
It is an important investment option for salaried individuals as it provides a number of benefits. One of the main benefits of EPF is that it helps employees build a retirement corpus. The amount saved in the EPF account is entirely tax free and can be withdrawn at the time of retirement. The amount withdrawn is also tax exempt. This helps employees save a significant amount of money over the long term. EPF also provides financial security to employees and their families in case of any emergencies. The amount saved in the EPF account can be withdrawn in case of medical emergencies, marriage, house purchase, etc. This helps provide a safety net in case of any unforeseen circumstances.
Reasons to Transfer EPF
Transferring your Employee Provident Fund (EPF) is a good idea if you have changed employers or have moved to a new city. This allows you to keep all of your accumulated funds in one place, making it easier to track and manage your savings. Here are some of the reasons why you should transfer your EPF when you change employers or move to a new city:
First, transferring your EPF will allow you to maintain the continuity of your savings. You won’t have to worry about your funds being split between two different accounts, causing confusion and difficulty in keeping track. By transferring your EPF, you can keep all of your funds in one place, making it easier to manage and track your savings over time.
Second, transferring your EPF will also ensure that you don’t lose out on any of the interest or other benefits associated with your EPF account. When you change employers or move to a new city, you may be entitled to different benefits or interest rates. By transferring your EPF, you can keep all of the benefits associated with your original account intact.
Finally, transferring your EPF will also help you save time and effort. Instead of having to open a new account in your new city or with your new employer, you can simply transfer your existing account and continue to manage your savings with ease.
Overall, transferring your EPF is a smart move when you change employers or move to a new city. It will help you maintain the continuity of your savings, ensure you don’t lose out on any of the benefits associated with your existing account, and save you time and effort.
Steps to Transfer EPF
Transferring your Employees Provident Fund (EPF) account is a simple process. All you need to do is follow these steps:
A. Collect information from your old and new employers.
1. Your old employer’s EPF account number
2. Your new employer’s EPF account number
3. Your Employee Identification Number (EIN)
B. Fill out the EPF transfer form. This form is available online on the EPF website. It requires details such as your name, address, old and new employer’s name and address, etc.
C. Submit the transfer form to the EPF office. Once you have filled out the form, you need to submit it to the EPF office. You can do this either in person or online. Once the transfer process is complete, you will receive confirmation from the EPF office. This will indicate that your EPF funds have been successfully transferred from your old employer’s account to your new employer’s account.
Do I need to submit any documents for transferring my EPF?
Yes, you need to submit your KYC documents like PAN card, Aadhaar card, etc. for verification purposes.
How long does it take to transfer the EPF balance from the old company to the new company?
The process usually takes around 15-20 working days.
Will I be able to check the status of EPF transfer?
Yes, you can track the status of your EPF transfer using the Universal Account Number (UAN) and the member ID provided to you by the EPFO.
Do I need to inform the new employer about my EPF transfer?
Yes, it is necessary to inform the new employer about your EPF transfer.
Can I transfer my EPS balance along with my EPF balance?
Yes, you can transfer your EPS balance along with your EPF balance.
Is it necessary to transfer my EPF balance when I change jobs?
Yes, it is necessary to transfer your EPF balance when you change jobs.
The process of transferring your EPF from old to new company is not as complicated as it may seem. With the right guidance and a few steps, you can easily transfer your EPF from your old to a new company without much worry. Knowing the ins and outs of the process is the key to a smooth and successful EPF transfer. So, go ahead, get informed and make the switch today!