Transfer of Provident Fund – Upcoming Updates

The UAN was launched so as to make the transfer and withdrawal of PF easy. Now, more and more people are encouraged to transfer the PF from one employer to another when they are changing jobs. This process has a significant advantage for the employee. Under this process, the employee can go ahead and transfer the PF to the new employee and hence the employee will keep earning a higher return.

This also helps the employee in saving for future and in addition to this, the employee is now saved from the paperwork required to transfer the PF. The forms are now available online and the employee can file a claim online itself.  The process is set to become easier and do you know what the new updates about the transfer of PF are?

New Transfer Procedure to be Implement in Future.

As per the new procedure, the PF will be automatically transferred to the new employer. This would eliminate the need for submitting a transfer request by the employee. The new employer will be able to put in a request and the transfer will be done. Under the new process, the government is trying to cut down the time required to transfer the PF. They are trying to decrease the standard lead time to 5 days. The condition for the auto-transfer is that the employee should have his Aadhaar seeded with the UAN number.

This is certainly a good move and this will encourage more people to transfer their PF from the old employee to the new employee. The move had been awaited for quite some time now and this new procedure should be in place in next few months. This is certainly going to help the employee in making thing easy for him.