PF Balance Transfer Become Easier & Faster on Job Change from Today
When a subscriber changes jobs, the new system from the Employees' Provident Fund Organization (EPFO) will immediately transfer the subscriber's provident fund amount to the new employer's account.
Transferring EPFO balances during job transfers is now simpler, according to the new EPFO rule. For your provident fund balance, the Employees’ Provident Fund Organization (EPFO) has put in place an automatic transfer system. This implies that you won’t need to manually request a transfer each time you start a new job. To guarantee a smooth transfer of your retirement funds to your new employment, EPFO will automatically credit your PF amount to their account. This makes managing your Provident Fund (PF) across many workplaces easier and is a major victory for employee portability.
When a subscriber changes jobs, the new system from the Employees’ Provident Fund Organization (EPFO) will immediately transfer the subscriber’s provident fund amount to the new employer’s account. To be clear, individuals who start a new job will not have to manually make a request to transfer their current PF money to their new employer’s account.
From now on, the process will be easy, convenient, and seamless. Employees will find it simple to maintain and grow their retirement funds when they change jobs, thanks to this new mechanism of EPFO.
Employees must contribute 12% of their base pay each month to the Employee Provident Fund (EPF), and employers must match this amount. Employees who have opted into the Employee Provident Fund (EPF) may choose to withdraw their funds to cover medical expenditures, up to six times their monthly pay, less interest, or their whole PF contribution. There is no minimum employment tenure or waiting period needed.
Consequently, in lean times, it provides a dependable source of funding. As long as they have worked for at least three years, employees who have outstanding home loans may also take out up to 90% of their PF money to help pay back the loan. After they work for five years, they can take up to twelve times their monthly earnings out of their PF account to renovate their home.
In the meantime, as of April 1, 2024, access to the National Pension System will require two-factor authentication. With the OTP that mobile phones receive, the same may be verified.
This is one of the actions taken by the highest authority in charge of managing the NPS, the Pension Fund Regulatory and Development Authority, or PFDRA.
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