Employees’ Provident Fund Organisation’s (EPFO) Central Board of Trustees (CBT) has approved the development of a centralised IT- enabled system by C-DAC. It is aimed at initiating the integration of all EPF accounts to make it easier for employees to change their jobs without the worry of transferring their EPF accounts to their new workplace.
In an official statement, Union Labour Minister of State, Bhupender Yadav, explained that after the centralised system is implemented, the field functionalities will be shifted to a central database in a phased manner, to help carry out operations in a smoother manner.
The perks of the process are:
- It will facilitate the duplication and merger of all PF accounts of the members
- It will remove the requirement of transfer of account on change of job
Despite digitization and new technologies, even today when people leave their jobs, they are required to open a new EPF account and then have the money transferred to the new account. They have to perform this process online, on the Member Sewa portal of the EPFO, using their Universal Account Number (UAN), which should be linked with Aadhaar. If the UAN is not linked with Aadhaar, then the employees will have to submit a new form to their new employer to get the process of money transfer started.
To our joy, the new system will remove all the pain of transferring all the money to our new accounts when we shift our jobs.
Source: The article has been published by HR Katha with a few tweaks from the ArdorComm News Network Team.