EPFO’s new rule from April 1: No manual request needed to transfer PF when individuals switch jobs

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New Delhi: From April 1, 2024, several key financial changes have taken place – with one of them linked to the Employees’ Provident Fund Organisation (EPFO). In a big relief for the salaried class, the Employees’ Provident Fund Organisation has announced that it will now transfer a subscriber’s balance automatically to their new organisation when they switch jobs.

The implementation of the automatic transfer system will enable the provident fund balance to get credited to the EPFO account holder’s account and the individual does not require a request to transfer the PF amount.

From 1st April, there is no need to manually request a transfer if a person changed organisation as the EPFO will automatically credit the PF balance to the new employer’s account. It is a welcome step as it simplifies the process of managing the PF across different organisations.

The Employees’ Provident Fund Scheme is a retirement benefit scheme where, both the employer and the employee, deposit a certain amount every month till the employee is working. As of now, EPF interest rate for FY 2023-24 is 8.25 per cent.

EPFO Payroll data

EPFO released its provisional payroll data on 24th March, 2024 which highlighted that EPFO added 16.02 lakh net members in the month of January 2024. The data showed that around 8.08 lakh new members enrolled during January, 2024. Notably, 56.41 per cent of the total new members added in January 2024 were of the 18-25 age group. The payroll data highlights that approximately 12.17 lakh members exited and subsequently rejoined EPFO.

EPFO Schemes

EPF Scheme 1952: Subscriber gets accumulation plus interest upon retirement and death. A scheme holder can partially withdrawal for education, marriage, illness and house construction.

Pension Scheme 1995: Housing Scheme for EPFO Members. Monthly benefit for superannuation/retirement, disability, survivor, widow(er) and children. Minimum pension on disablement. Past service benefit to participants of erstwhile Family

Insurance Scheme 1976: The benefit is provided in case of death of an employee who was a member of the scheme at the time of death. Benefit amount is 20 times of the wages, with a maximum benefit of 6 lakh.

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