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EPFO enables account holders to update exit date after leaving a job
The Employee Provident Fund or EPF is basically a financial assistance scheme for the purpose of fulfilling the retirement objectives. The EPF is an essential advantage gave by the Indian government to every single salaried employee in India, on which fixed interest amount is routinely paid to him. Except for a few instances, mostly the organizations are required to have the mandatory EPF registration.
Recently, the Employees' Provident Fund Organisation (EPFO) has now launched the 'date of exit' facility on the EPF government portal. this will allow the EPF subscribers to update the exit date of their job online after they change their jobs. Previously, the EPF account holders were dependent on their ex-employers to update their date of exit of the job as the facility was then not available online to the EPF subscribers. Let us understand this in detail.
1. How can the EPF subscribers update the date of exit of their job?
Now employees can easily update their date of exit of their job on the EPFO portal itself. Here are the steps involved in this process:-
- #Step 1: Log in to the EPFO govt portal using your UAN (Universal Account Number) and the password.
- #Step 2: Now navigate to the "Manage" section and then select the "Mark Exit" option.
Now you will see the option to select your PF account number on the "select employment" dropdown menu.
- #Step 3: Next you need to enter the date of exit of your job along with the valid reason of leaving the job.
- #Step 4: Select the "Request OTP" button and then enter your OTP sent to your Aadhaar-linked mobile number. Tick mark the checkbox and then press the "Update" button and then click "Ok".
Now you will receive a message telling you that the date of exit has been recently updated by you.
- #Step 5: Once this is done, now you can go to the "View" option and go to "Service History". Here you will see the date of joining along with the date of exit from both the EPF and EPS schemes.
2. What are the precautions to be taken while updating the date of exit?
Here are some precautions needed to be taken while you update the date of exit of your job on the EPFO portal:-
- You cannot update your date of exit 2 months prior to leaving your company. This is because recently, many EPF subscribers had complained that their former employers were not co-operating while declaring the date of exit over the EPFO portal.
- Carefully update your date of exit of the job. This is important because it might affect the submissions of PF claims and their settlements later on.
- After you've changed your job, in case the date of exit is not correct, then your current employment shall not be treated as continuous. In such a case, you might be asked to pay tax over the interest earned during the contingency period, which you've actually not earned!
3. Why EPF registration is important?
Indeed, the Employee Provident Fund has become a noteworthy part of retirement planning today.
- One of the clear advantages of the EPF is that accumulated dividends on PF are absolutely tax-free.
- Additionally, there is a confirmation of the relentless development of your savings upon the maturity time frame.
- In the event that the PF account has proceeded for an exceptionally extensive stretch, it can fundamentally help with meeting the retirement plans.
In any case, the association qualified for an obligatory EPF registration should give the above advantages to its employees.
Know more about the advantages of EPF registration.
In case you require any sort of assistance regarding the process of EPF registration, please feel free to contact us at 8881-069-069.
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