The Employee provident Fund Organization(EPFO) has rolled out a new system that enables the automatic transfer of PF balance amount when they change to a new employment. Earlier you would have to request for the transfer of provident funds when there was a change in employer.
The new rule has been implemented on the 1st of April, 2024. Under this new rule, an employee who has his Universal Account Number (UAN) linked and is fully compliant with the KYC (Know Your Customer) requirements can find their PF balance automatically transferred to their new employer’s account. This automatic transfer is triggered when the new employer makes the first contribution.
Moreover, EPFO has shown over 19 per cent growth, year on year, rising to 1.65 crore members in 2023 – 24. So says the data from the latest payroll, showing an improvement in the employment situation of the country. This net addition in the EPFO subscriptions is reported to be an indicator of the extend of formalization of the job market.
In a circular released by EPFO, on April 16th 2024, EPFO has raised the qualifying limit for auto claims, those made under specific conditions, processing under paragraph 68J. The limit for the auto withdrawal has been raised from Rs 50,000 to Rs 1,00,000. This enables the employees to request advances from the fund under circumstances related to medical treatment. It includes hospitalization lasting for one month or more, major surgical operations, and ailments like leprosy, paralysis, tuberculosis, cancer etc.
Online claim submission process has been simplified where the employee can login to the EPFO member portal using his UAN credentials. Employee needs to ensure that the KYC details and the service eligibility information are complete and up to date. The employee can then choose the type of claim from the available options (marriage, medical emergency, house purchase, home loan repayment). The identity can be authenticated by entering OTP received on the registered mobile number. The online claim submission process can be completed by following the prompts and providing any necessary documentation / information.