As per an ET report, the automatic transfer simplifies the process for EPF members switching jobs, enabling them to seamlessly move their PF balances without the need for online or offline transfer requests.The transfer occurs automatically from the old employer to the new one, sparing members the hassle of managing the transfer themselves.
Vaibhav Bhardwaj, a Partner at INDUSLAW, said that EPFO’s automatic EPF account transfer has been operational since 2017.
Does every EPF member have access to the automatic transfer service?
However, it’s important to note that not all EPF members have access to the automatic transfer facility from old to new employers. It’s only available for those whose EPF accounts are managed by EPFO. Exempted PF trusts are not included in this automatic transfer option.
Gupta explains that if either the previous or current company operates a private provident fund trust, the auto-transfer feature will not function. A private PF trust oversees the provident fund contributions of employees within the respective company, rather than through the EPFO. However, it must still comply with EPFO regulations.
Bhardwaj adds that EPF members transferring their old EPF account to a new EPF account, whether from EPF to an exempted trust or vice versa, or between exempted trusts, will need to apply for transfer using Form 13, either online or offline.
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Requirements for automatic EPF transfer
The EPFO has set specific requirements for automatic EPF account transfers from old to new employers. These conditions, outlined in a November 2017 circular, include:
(i) Matching UAN and Aadhaar numbers provided by the new employer with existing details in the UAN.
(ii) Aadhaar number of the EPF member must be linked and verified with the UAN at their previous workplace.
(iii) Availability of EPF member’s details such as date of joining, date of exit, and reason for exit from the old employer.
(iv) Activation of EPF member’s UAN, with a registered mobile number.
Bhardwaj further explains that when an employee starts a new job and receives their first month’s provident fund contribution from the new employer, an automatic transfer is activated. This triggers the transfer of the EPF member’s previous provident fund dues to their new account.
Once the process is triggered, an SMS and email notification inform the member about the initiation of the auto transfer.
Sandeep Agrawal, Director and Co-Founder of Teamlease Regtech, said that for automatic transfer claims, there’s no requirement to submit Form 13. However, if the automatic transfer doesn’t occur within the specified time due to issues like mismatched dates of exit, not updated exit dates by a previous employer, member details mismatch, or pending UAN Aadhaar seeding, members can opt for online Form 13 to transfer EPF and EPS accumulation from the previous employer to the present one.
Verify if the automatic EPF transfer is successful
Once an EPF member receives SMS and email notifications regarding the auto transfer of their EPF account, they should verify if the transfer has been successful.
Puneet Gupta, Partner at People Advisory Services EY India, mentions that the auto transfer process will only be finalized if the member doesn’t request to stop it within 10 days of receiving the notification, either online, through the employer, or at the nearest EPFO office. Additionally, the transfer will be completed after the first contribution from the new employer is deposited and reconciled.
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The automatic EPF transfer follows a similar process to manual requests. Experts suggest that it may take 2-3 weeks for the automatic transfer to complete.
Sandeep Agrawal adds that members can confirm the transfer by checking their passbooks. By logging into the unified portal and navigating to ‘View Passbook,’ members can see a credit entry if their PF has been successfully transferred.
EPF members can stop automatic EPF account transfers
EPF members have the option to halt automatic transfers if they prefer. They can do so within 10 days of receiving the SMS notification about the auto transfer initiation. This can be done online via the Member e-Sewa portal or offline through their current employer or by visiting the nearest EPFO office.
Gupta has mentioned the steps for stopping the automatic transfer online:
1. Log in to the EPFO Member portal.
2. Navigate to the “Online services†tab and select “Track claim status.â€
3. Choose the option “Stop auto-initiated claim cases.â€
If the auto transfer request has been triggered, it will appear under “Stop auto-initiated claim cases,†providing the option to halt the transfer. After stopping the EPF transfer, the member will receive communication via SMS to the mobile number linked to the UAN and the registered email address.
