Provident fund is most useful scheme for every employee in India who are working under private and government organisation or any company. As per EPF Act, there is a deduction of 12 % amount from employee basic salary to their EPF account. employer also contributes to same percentage of amount of employee basic salary. But amount will be spat like 3.67% amount to employee EPF account and remaining 8.33% of amount to EPS (Employee’s Pension Scheme).
These deductions monthly up to employee retirement age. And every year Indian government offers different interest rates on EPF amount. As per year 2017-18, PF interest rate is 8.55%. This interest rate may be increased and decrease for next financial year. This purely depends on government strategy.
Up to now, it’s good but, what happens if employee wants to change his/her job on their reasons? Again they need to open a new PF account and complete all formalities and refill monthly their EPF account as per rules. This was a big problem, so to smoothen this problem government introduces UAN-Universal Account Number in 2014. This UAN is most important for every employee who comes under this EPF scheme. This UAN number once created, it doesn’t change or deleted.
So, with this UAN, if an employee changes their company, no problem. This UAN helps to maintain same PF account if he/she joins a new company also. Once this UAN created, this should be linked with their EPF account, so if they indicate their UAN number in their new company, then monthly PF deductions will contribute to employee last PF account without any disturbances. Only thing is here, employee should remind their UAN number always. If they forgot their UAN number, no problem employee can get their UAN number through this website www.unifiedportal-mem.epfindia.gov.in/memberinterface.
In what cases, you can transfer your provident fund amount from old account to new PF account?
If employee wants to close his/her employment provident funds account which is having less than 5 years of age. In this situation, if you close that certain amount will become taxable. Unless, if you transfer old provident fund amount from old PF account to new PF account, old provident fund amount not aimed by any taxes.
One more reason is prevailing rate of interest from Employment Provident Fund Account.
Previously there was some headache process to transferring old provident fund amount to new PF account. Now, EPFO launches a portal http://members.epfoservices.in/, this made that work some easy process.
Process of transferring provident fund amount from old PF account to new PF account:
Open link http://members.epfoservices.in/ from your computer browser.
A new page will open, in that you should fill your details like UAN, mobile number, employee details and employer details.
After filling details click on next. This shows whether you are eligible for transfer or not.This you get to know by clicking “check for eligibility” option.
If you are eligible, it continues with registration process on EPFO website page.
Next, need to enter details of PAN and Aadhaar for identification purpose.
After this EPFO sends an OTP/PIN to registered mobile number to confirm employee.
After entering OTP/PIN, a new page will open. This is for EPFO claims portal.
Here need to fill login process.
After successful login, you can see multiple options in that identify and select Request for Transferring PF amount option.
Then you will get 3 forms in that webpage, you need to fill it one by one.
One form to enter your personal details.
In second form need to fill old PF account details.
third part or form need to fill new PF account details.
After that, click on preview and it checks entire information which you filled it correct or wrong.
If all details are correct, need to fill captcha and click on submit.
Then one PIN will send to registered mobile number and need to enter there.
Next, you will get message like transferring amount form old PF account to given PF account process is initiated.
At last you will get one acknowledgment number you can save that number for reference and this process takes 2-3 weeks of time. You can check process in Track claim option also.