As per reports, from next month onwards employee’s Provident Fund (PF) accounts will be transferred automatically when they switch their job. Adhaar card has been made compulsory for Employees’ Provident Fund Organisation (EPFO) account enrollment. The main objective behind this move is to retain employee’s PF account for social security. Another aspect of this move is to make the PF more worker-friendly.
What is Employees’ Provident Fund (PF)
Provident Fund is a part of employees’ salary in most of the organisations. This amount is deducted from the salary every month and is deposited to the employee’s Provident Fund account on employee’s behalf by the employer. Under the PF scheme, the employer also pays the same amount that is deducted from the employee’s salary. Until now there was a provision of PF withdrawal which will soon be converted. Till now, the employee had the option to apply the withdraw of the saved amount after leaving the establishment.
Adhaar compulsory for enrollment
It was reported that linking Adhaar has been made compulsory for enrollment for PF account alike mobile, gas, bank accounts and other such services. It was reported that during the first six months of a campaign that was initiated in January this year, more than one crore workers were enrolled to the PF accounts.
The organisation is now trying to retain the employees who have enrolled themselves to the EPF. The organisation has plans to retain its consumers by improving their services. The organisation doesn’t want the PF accounts to be closed as it believes that the employee should retain his/her PF account for social security
Money will be transferred
According to reports, the organisation is trying to ensure transfer in case of job switch. The report also mentioned that the money, in case the employee changes his/her job, will be linked with the new organisation without any application. This transition will be done within three days.
After linking the PF accounts with Aadhaar ID and verifying the same there would be no need for any additional documentation to change the PF account. There will soon be a system to transfer the PF account automatically without any application if the worker switches the job within the country.
Source : Economic Times