Once EPF transfer becomes automated, when the new employer will file the monthly PF return including the UAN of the new employee, the EPF contributions and interest earned will be automatically transferred.
New Delhi: Employees
Provident Fund Organisation (EPFO) subscribers will no longer have to file
provident fund (EPF) transfer claims when they change jobs as the process will
be automated. It may be noted that currently, employees have to file EPF
transfer claims while
However,
from April 1 onwards, the process might be automated. A senior labour ministry
official stated earlier this year that EPFO has roped in C-DAC to study its
operating systems in order to go paperless soon. He also told that at present,
about 80 per cent of the work is done online and they are aiming to go
completely paperless which will be possible of EPF transfer become automated.
Once
EPF transfer becomes automated, the new employer will file the monthly PF
return including the UAN of the new employee following which the EPF
contributions and interest earned on that will be automatically transferred.
This will also allow the employees to get credits on their EPF contribution
during their tenure with previous employers into their UAN.
EPFO
gets about eight lakh EPF transfer claims every year and once the system is
automated, it will ease the workload on the organisation. EPFO is currently
testing the automation on a pilot basis and it is expected to be rolled out
soon.
Worth mentioning here is that the Supreme Court on
Thursday ruled that ‘special allowance’ must be included in basic pay for
calculation of provident fund (PF) deduction from employees and the
company. This move will not only have financial ramification on companies
but will also impact the take-home salary of employees.
