Changing the provident fund (PF) account while shifting from one job to another will be easy from now onwards. The Labour Ministry is planning to put in place a new system that enables automatic transfer of PF account from the old employer to the new from the next financial year.
Under the proposed system, when employees join a new organization, the PF account will be transferred automatically. There will be no need to submit an application for the purpose.
Even though universal account number is already in place, till now a separate application had to be submitted while changing jobs to transfer the PF account to the new employer. Every year, the authorities receive around eight lakh applications for EPF transfer.
The new arrangement is expected to benefit all PF subscribers from next year. At present, the project is being implemented on a trial basis. It is learnt that 80 % of the procedures have been completed online.