This amendment is a game-changer for lakhs of salaried employees across India, as the Employees’ Provident Fund Organisation (EPFO), in a goodwill gesture, has introduced certain relaxations with regard to the working of Provident Fund transfer process. From now on, PF transfer requests shall not be rejected on account of overlapping service from two employers—an issue that had bedeviled employees for many years, inconveniencing them.
What Has Changed?
Prior to this, in the event an employee switched jobs and in the system, if the Date-of-Exit (DoE) in the earlier organization coincided even by a day with the Date-of-Joining (DoJ) into the new organization, an error would be generated by the EPFO system. This led to getting their PF transfer claim rejected automatically, thereby holding up the actual time for the transfer and also causing anxiety among the members for some time.
However, with this new update, PF Transfer requests will be put through by the EPFO even if service periods overlap, so that a major nuisance for millions of job-switchers is finally removed. The EPFO feels that this is a step towards the simplification and digitization of employee services under the “Ease of Living” initiative of the EPFO.
With What Purpose Was This Change Enforced?
The situation of overlap in two dates was recurrent: time-bound by few factors like the clerical error from the side of employee or employer, delays in record updates from the employer, or administration of last-minute job switch. Most employees went frantic to get DoE corrected as it usually involved being in coordination with the previous employer for a long time.
And this further delayed the process of consolidating PF balances, thereby hampering not only the financial planning of an employee but also eligibility for claims under pension and insurance schemes of the EPFO.
Benefits For Employees
- Faster Transfers of PF: With this clause for rejection based on the overlap of service removed, employees will expect PF transfer requests to be processed faster.
- Less Rejection: With fewer errors in rejecting claims for PF will save time and create less stress.
- Testing of PF Account: This would allow for timely consolidation of PF balances under long-term retirement considerations.
Employee’s Responsibility
This rule being relieved of such a matter, employees are advised, nevertheless, to watch their employment details being put in the EPFO portal with DoJ and DoE by their employers, because erroneous records again delay claims of a different nature.
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