If you are planning to change your job but you are worried about the Employees’ Provident Fund than here's a good news for you. From next month, your PF account will be automatically transferred when one changes job.
Aadhaar card has been made mandatory for enrollment and an employee doesn’t need to close the existing PF account. The worker can retain the same FP account for social security after switching job.
TOI quoting chief provident fund commissioner V P Joy said, “Now we have made Aadhaar compulsory for enrolment. We don't want accounts to be closed. The PF account is the permanent account. The worker can retain the same account for social security".
"Whenever there is change of job, a lot of accounts are closed; then they (the employees) restart their account later on," he added.
"We are trying to ensure transfer of money if one changes jobs, without any application, in three days. In future, if one has an Aadhaar ID and has verified the ID, then the account will be transferred without any application if the worker goes anywhere in the country. This system will be in place very soon," Joy told the TOI.
"Now we have made Aadhaar compulsory for enrolment. We don't want accounts to be closed. The PF account is the permanent account. The worker can retain the same account for social security," Joy added.
The EPFO has also stepped up efforts to expand coverage, and initial results have been positive. "During the campaign from January to June, more than one crore workers were enrolled. Now, we are trying to retain them by improving services," Joy said.
Joy said PF money should be withdrawn only for major purposes like housing, education of children, or serious hospitalisation. "...Only then will people get social security. So, we are now starting a campaign...to educate people that money must be withdrawn only for essential purposes," Joy said.