Switching jobs is a good thing to do, but it can be scary too. There are a lot of things to consider before making the big jump. For example, you need to know about EPF and transfer EPF (Employer funded Pension) PF to a new employer account. In this article, we will read about EPF, How to transfer it, and its benefits.
What do you need to know about EPF?
The Employee Provident Fund, or PF, is a government-sponsored retirement savings plan for all salaried workers in India, with fixed interest charged constantly.
Employees pay 12% of their minimum wage + DA to the EPF under this government scheme. In addition, the employee shares administrative expenses evenly, with an additional 1.36 per cent.
A UAN ( Universal Account Number) is sent to every employee who contributes to the EPF. After five years of continuous service, employees may revoke their EPF.
When is it mandatory to have EPF Registration?
It is mandatory for the following cases.
- It is essential for every worker with a wage of less than or equivalent to fifteen thousand dollars.
- EPF is also necessary for businesses or factories with more than 20 workers.
- The class of organizations that the Central Government can specify for mandatory EPF workplace registration by note.
What do you need to know about EPF when you change your job?
When you enter a new organization, your Universal Account Number, or UAN, should preferably remain the same. The UAN has the concept of “one account, one client.” When your job changes current UAN gets an update to the latest PF account.
What are the benefits of EPF Registration?
The Employees’ Provident Fund (EPF) or Pension Fund (PF) is one of India’s most beneficial schemes. Employees of both the private and public sectors profit from it. EPF Registration is also mandatory in many cases, and businesses should promote and implement it. Some major benefits of EPF are as follows.
- The EPF facilitates saving.
- It also aids in the transition to a post-retirement lifestyle and continues to finance retirement.
- It also aids in obtaining tax exemption.
- In comparison to other systems, the interest rate is exceptional.
- There’s no requirement to spend a large amount of money all at once.
How do you move your PF balance to an online account?
Step 1: Enter your UAN and password to access the UAN Member e-Sewa Portal.
Step 2: In the next step, choose ‘Online Services’ in the top menu bar. From the drop-down list, choose ‘One Member-One Epf Account (Transfer Request)’.
Step 3: Fill in the information from your initial account or User ID.
Step 4: Choose ‘Get OTP’ and enter the OTP sent to your registered mobile number to confirm your identity.
Step 5: A tracking ID is generated, which can be used to keep track of the request’s status. That’s it. Now, Your online account receives the EPF Balance.
In case, you need any kind of direction connected with the EPF Registration, please feel free to communicate with our business advisors at 8881-069-069.
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