The employees’ provident fund (EPF) is a social security fund comprising contributions from employers and employees, which are paid to employees on their retirement. The entire process is administered by the Employees’ Provident Fund Organisation (EPFO), which is a statutory body established by the Ministry of Labour and Employment.
With an aim to ensure ‘Ease of Living for Employees’, the EPFO is moving towards a digital system by introducing significant technological and procedural changes.
EPFO currently handles around 20 crore PF accounts in India.
To keep up with digitisation, the EPFO has updated the process under which subscribers can withdraw and transfer provident funds. Specifically, the EPFO has made it easier for subscribers to withdraw provident funds and deposit them directly into their bank accounts using the unified member portal. Further, on 20 February 2017 the EPFO has replaced the multiple claim forms (i.e. Forms 19, 10C and 31) with a single-page composite claim form in order to initiate the next phase of e-governance and make services more efficient and transparent for subscribers.
This change is beneficial to all subscribers, as employer verification is no longer required. However, employer verification is still required where a subscriber’s universal account number (UAN) is linked to their Aadhar (i.e. unique identification) number. Where a subscriber’s UAN number is not linked to their Aadhar number, the composite claim form must be filed online and will then require employer verification.
In keeping with its aim of providing efficient and transparent services to subscribers, the EPFO has introduced Form 11, a new composite Transfer Form which facilitates automatic transfers of provident funds from a former employer to a new one. The composite transfer form replaces the previous Form 13. Under the new Form 11, subscribers must submit certain information to their new employer, which must add it to their portal on the EPFO website.
This change also applies where a subscriber’s UAN is linked to their Aadhar number. Where a subscriber’s UAN is not linked to their Aadhar number, they must apply for a transfer using Form 13 and follow the procedure for a physical transfer.
The withdrawal process can be summarised as follows:
The transfer process can be summarised as follows:
TaxAaram, on receiving an official e-mandate/authorisation from its valued registered users, will render its seamless and hassle-free e-services, in relation to all their EPFO related e-compliances, including preparationand representation of effective and qualitative e-submissions in response to EPFO Notices u/s 7/7A of ‘The Employees Provident Fund & Miscellaneous Provisions Act 1952’, within the comforts of their homes, without even the requirement of visiting the PF department or PF consultants’ office, in the most professional and cost-effective manner.