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Your PF account will now be automatically transferred if you change your job

Your PF account will now be automatically transferred if you change your job

NEW DELHI: From next month, your PF account will be transferred automatically when you change your job, chief provident fund commissioner V P Joy has said. 

Joy, who is pushing a slew of initiatives in the Employees' Provident Fund Organisation (EPFO) to make it more worker-friendly, said the premature closure of accounts was one of their main challenges, and they were trying to address it by improving services. 

"Whenever there is a change of job, a lot of accounts are closed; then they (the employees) restart their account later on," he added. 

"Now we have made Aadhaar compulsory for enrollment. 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. 

"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," he 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Joy said PF money should be withdrawn only for major purposes like housing, education of children, or serious hospitalisation.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 So, we are now starting a campaign…to educate people that money must be withdrawn only for essential purposes," Joy said. 
 

 

(This article was originally published in The Times of India)

 

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