Why Aadhaar-EPF account linking is a must and how it is useful when you change jobs

Why Aadhaar-EPF account linking is a must and how it is useful when you change jobs

As soon as a person changes his job, the first thing he wants is to get his Employees’ Provident Fund (EPF) account managed. Earlier, an employee had to fill two forms — Form 11 and Form 13 – to get his funds transferred into the new account. Form 11 was filled up to declare that the person has an EPF account while Form 13 was filled for getting the PF balance transferred.

But the Employees’ Provident Fund Organisation (EPFO), to make things hassle-free for its subscribers, has launched a new form which works for both Form 11 and 13. A Composite Declaration Form (F-11) lets members transfer their money automatically from the PF account with the previous employer to the new account.

Here is how it works:

1) After joining a new organisation, an employee has to fill and submit details via the Composite Declaration Form 11. In this form, the new joinee has to fill personal details and information about the previous employment. The person also has to fill in UAN (universal account number) and the previous PF number.

2) The data is then validated with the information available against the UAN and in case of any discrepancy, the employer has to verify/update the information provided.

3) However, if the previous UAN number has been linked with Aadhaar, the declaration by the employer of transfer request made by the employee in Form-11 will trigger an auto-transfer process. The whole amount from the old PF account will get transferred to the new one.

4) An SMS informing the subscriber about the proposed auto-transfer will be sent on his registered mobile number.

5) The process gets completed within 10 days of the SMS and the first deposit by the new employer is deposited and reconciled thereafter.

The auto transfer of the previous PF account would only be possible if the subscriber’s Aadhaar has been linked to the UAN number. If not, then the subscriber will have to fill both Form-11 and Form-13 for the transfer of the account.

Source by:-financialexpress