From now on, provident fund transfers will no longer be a Herculean task for job switchers. The Employees’ Provident Fund Organisation (EPFO) has introduced a new feature that will make PF transfers faster and hassle-free. EPFO has rolled out an updated version of Form 13 and upgraded its software system. This move is expected to benefit over 1.25 crore members by making the process quicker and smoother. It is part of EPFO’s broader plan to digitise operations, enhance transparency, and reduce the paperwork burden for Indian workers.
This feature is effective from January 2025. The requirement for employer approval in most transfer cases has been eliminated. Previously, PF balance transfers required coordination between source and destination EPFO offices, often causing delays and headache for the employees.
How It Works
Under the new system, once the source office approves a PF claim, the amount is directly credited to the employee’s account at the destination office without any need for further verification. This has made the process much faster and has reduced complaints related to PF transfers. Additionally, the updated Form 13 software now clearly separates the taxable and non-taxable portions of PF savings. This helps ensure more accurate calculation of Tax Deducted at Source (TDS) on interest earnings, which is important for better tax compliance and greater transparency.
By removing confusion around tax liabilities, the change solves a long-standing issue for PF members. The EPFO estimates that these improvements will help transfer nearly Rs 90,000 crore annually, making the process smoother. This will significantly boost efficiency and enhance member satisfaction.
Bulk Generation Of Universal Account Numbers (UANs)
EPFO has introduced a facility that allows employers to generate Universal Account Numbers (UANs) in bulk, even without Aadhaar seeding. A new software functionality in field offices enables the creation of UANs using existing member data, making it easier to validate and settle claims, particularly for workers from exempted trusts after exemptions are canceled or during recovery efforts. However, to ensure the security of PF savings and reduce risks, all UANs generated without Aadhaar will remain in a frozen state.
