EPFO Update: Changed Job But Didn't Share UAN Your Employer? Here's Why You Could Be In Trouble
Universal Account Number (UAN) helps the PF member to view details of all the Member Identification Numbers (Member Id) linked to it. But not furnishing your UAN details to your new employer could bring hassles for you. Check what should be done when you are switching jobs.
Universal Account Number For EPFO Subscriber
Universal Account Number (UAN) acts as an umbrella for the multiple Member IDs allotted to an individual by different employers. UAN enables linking of multiple EPF Accounts (Member Id) allotted to a single member.
Services Offered With UAN
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UAN offers a bouquet of services like dynamically updated UAN card, updated PF passbook including all transfer-in details, facility to link previous members’ PF ID with present PF ID, monthly SMS regarding credit of contribution in PF account and facility for auto-triggering transfer request on change of employment.
In Case Of Change In Employment PF Account To Be Transferred?
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On change in employment, the member should necessarily get his PF account transferred to his present establishment, duly submitting Form 13(R). A member can submit claim for transfer online using member interface at unified portal.
Inform New Employer About Your Existing UAN
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If a member is already allotted Universal Account Number (UAN) then he / she is required to provide the same on joining new establishment to enable the employer to in-turn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number (UAN).
How Not Informing New Employer May Land You In Trouble
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If you don't share your existing UAN to your new employer, your EPF account becomes dormant. This could lead to further troubles like hassles in PF withdrawals, no further contribution in your PF account thus ceasing of interest accrual among other things.
Why To Transfer PF With Change In Job/employment?
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The provident fund money is meant to provide for a source of income or a social security after retirement during old age. To create a sizable savings it is necessary to start saving early and accumulate the corpus by reducing intermittent withdrawals. Hence EPFO advises that it is a good practice to transfer PF with each job change to reap full benefits of the social security schemes.
Benefits Of PF Transfer
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1. PF transfer lets the past service transferred into the current member ID. If the total service is more than 5 years then TDS is not charged on PF withdrawal. Clubbing of past service may help the member in crossing the 5 year mark thus saving on TDS.
PF Transfer Compounding Funds
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2. Transferring PF amount instead of withdrawing gives the member the benefit of compounding of funds. The compounding effect can be visualized in a way that if a member does not withdraw his PF money on change of job and gets it transferred to his new account then the same money would get doubled in approximately 8 years, assuming EPFO continues to give at least 8.5% interest rate just like it has given in the past so many years.
PF Transfer: Pensionary Benefits
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3. A service of more than 10 years makes the member eligible for pensionary benefits. Transfer of PF accounts ensures that the past services does not get lapsed and continues to get added in the subsequent employment.
