One employee-one EPF account is a facility to easily transfer your EPF account balance. It helps to bring PF balance from the different accounts to one account. You don’t need to apply individually for all the accounts.
Problem of Many EPF Accounts
There is a high probability that you have more than one EPF account. It might happen because of the job switch. The account may be very old. You might have forgotten the EPF number. Either, your EPF number has become obsolete.
You did not bother about this amount till you need money. There may be many other reasons to not transferring your PF account balance. Transferring PF account balance from many accounts is a real pain. The employers rarely cooperate with a very old employee.
You are not the one who is facing this problem. Out of total 15 Crore EPF account, 9 Crores are the inoperative accounts. 2 Crores account has become inactive. These inoperative accounts are also a big problem for the EPFO.
EPFO is trying hard to make the processes easy. It has taken many steps to make the EPF transfer and withdrawal easy.
- EPF Balance check has become very easy. You can check EPF balance by the missed call and SMS.
- You can apply for Online EPF transfer through the OTCP portal.
- The universal account number (UAN) has made the EPF transfer mechanism very easy.
- There is inoperative Account help-desk to find out the old PF accounts.
- EPFO has released new EPF withdrawal form which doesn’t need Employer’s signature.
Did you use online method of EPF transfer? Do you still want an easier process to bring your all the EPF account balance into one EPF account? The ‘One Employee One EPF account facility’ is for you.
Why Should You Consolidate EPF Accounts
EPF transfer is not an easy task, then why should you take the pain of transferring money? Why not leave the money in every account?You never consolidate bank account they why PF accounts? Why not you maintain many PF accounts?
Let me answer this.
It is true that the government has started to give interest on the inoperative EPF account as well. Before 1st April 2016, an inoperative account did not give interest. It has been one of the major factors to transfer EPF. But now you would not lose the interest in any case.
But there are some valid reasons. Have a look!
Tax on EPF Withdrawal
If you withdraw the EPF balance before the total service period of 5 years, the EPF withdrawal amount gets taxable. To get tax-free EPF amount you should complete total service period of 5 years. Hence, if you do not transfer EPF balance, the previous service period would not be considered. It can make EPF withdrawal taxable.
The universal account number gives many benefits to EPF members. You can transfer and withdraw EPF amount easily in the future. The KYC submission, EPF passbook and PF balance check are also very easy through the UAN. But your old EPF account might not be linked to the UAN. With the EPF transfer, your total EPF balance would come into one account. This would be recent EPF account. This account might be associated with the UAN.
You can take loan/partial withdraw from the EPF account. The amount of partial withdrawal is dependent upon the balance of the respective account. Thus, if you keep all of your EPF amount in one account, you would be able to get more loan.
One Place to Manage
Keeping track of several EPF accounts is very tiresome. Therefore, it is always advisable to keep as few account as possible.
Benefit of Special EPF Drive
EPF is conducting special drive ‘One member one EPF account’ to consolidate your EPF account. You should take advantage of this drive. It is easier to transfer EPF balance through this facility.
You become eligible for EPF pension after completing the total service of 10 years. But if you don’t transfer the EPF balance (along with the pension amount), the previous service periods would not be considered for Pension eligibility.
How To Transfer EPF Through One Employee, One EPF Account Scheme
Requirement for Easiest EPF Transfer
The One Employee, One EPF Account drive is the easiest way to transfer EPF balance. But there are certain requirement to avail this facility.
- You must have the universal account number
- The UAN should be activated
- The Recent PF account should be linked to the UAN.
- The KYC should be authenticated by the employer.
Step To One Employee, One EPF Account Facility
Go to the EPF website at http://www.epfindia.com or http://epfindia.gov.in and click on the employees section under services. One employee-one EPF account will appear at the bottom.
Fill your UAN, registered mobile number and PF account number. A one-time password (OTP) will be sent for verification to your phone.
The next page will ask you for details of your past PF numbers that need to be transferred. Currently, you can fill up to 10 past PF numbers.
Please be careful while filling the PF member ID. Note, you have to give the PF number with new establishment code. You can check the establishment code from the EPFO website.
Once you fill in this information, the PF account numbers go to the respective regional PF offices. These EPF offices process the EPF transfer if everything is found correct.
Points To Note
- To avail this facility you must activate the UAN.
- The name, date of birth, father’s name, bank account should match with the details with the UAN. If not you should correct the EPF Account personal details.
- You should give correct and active mobile number. If EPFO finds any discrepancy, it would ask you to correct it. The mobile number would be very useful in such cases.
- The Adhaar linked UAN would fast track the EPF transfer.
EPF Transfer of Inoperative Account
The One Employee One EPF Account has also made the EPF transfer of the inoperative account very easy. If all the particulars match, it becomes the responsibility of EPFO to transfer the EPF balance.
The procedure is similar for the inoperative EPF account. However, if you don’t have the PF member ID of the inoperative EPF account, you use the facility of inoperative Account Helpdesk.
EPF Transfer and UAN
The universal account number has made the EPF transfer a smooth affair. The UAN has given every employee a unique identity which does not change with the job. Using the UAN, the EPFO establishes the identity of the employee. After the authentication through the UAN, the EPFO can easily transfer the EPF balance without verifying it from the employer. To make this process safe, the EPFO uses OTP to verify the authenticity of the employee.
EPF Transfer And Adhaar
The Adhaar is the only identity document which uses the biometric details of the person. The biometric details can’t be forged. Because of this secure mode, EPFO also uses Adhaar to authenticate the employee. The EPFO mathces your personal details to match with linked Adhaar and all the EPF accounts. If the data matches, the EPF transfer takes place without going to the employer.
If your UAN is linked with the Adhaar number, and all the details mathces with the EPF account, the EPF transfer would happen without any hassle.
Thus it is necessary to link your adhaar with UAN and get it verified by the employer. You should complete this exercise while in the job.
When should you not Transfer EPF
You should always try to transfer EPF money. Becuase, this amount would make your retirement years more secure. However, there are certain situations when withdrawaing the EPF money is a better option.
You should withdraw the EPF if your are not going to get an employment. Without the job, keeping track of EPF account balance might be a hassle.