When you leave your job, you are entitled to withdraw your provident fund (PF) accumulated with your old employer. However, it is often recommended to transfer your PF balance to your new employer or to your own individual PF account. This ensures that you continue to earn interest on your PF balance and also helps you avoid tax implications. In this blog, we will discuss the steps involved in transferring PF from the old company, including the documents required and the process of transferring.
Understanding Provident Fund (PF)
Provident Fund is a retirement benefit provided to employees by the government of India. It is a mandatory savings scheme, which requires both the employer and employee to contribute an equal amount of money every month. The employer’s contribution is 12% of the employee’s basic salary, while the employee’s contribution is also 12% of their basic salary. The accumulated amount in the PF account earns interest over time.
Step-by-Step Guide to Transfer PF from the Old Company
- Obtain UAN Number: The first step in transferring your PF balance is to obtain your Universal Account Number (UAN). The UAN is a unique number assigned to every employee, which is linked to their PF account. You can obtain your UAN number from your old employer or by visiting the EPFO website.
- Activate UAN Number: Once you have obtained your UAN number, you need to activate it by visiting the EPFO website and following the instructions provided. You will need to provide your UAN, mobile number, and other details to activate your UAN.
- Check Eligibility for Transfer: Before initiating the transfer process, you need to check whether you are eligible for transfer. To be eligible for transfer, you must have worked for your old employer for at least 6 months.
- Fill in the Transfer Form: To transfer your PF balance, you need to fill in the PF transfer form. This form is also known as Form 13 and can be obtained from your old employer or the EPFO website.
- Submit Transfer Form: Once you have filled in the transfer form, you need to submit it to your old employer or the nearest EPFO office. You can also submit the form online through the EPFO portal.
- Track Transfer Status: You can track the status of your PF transfer online through the EPFO website. The transfer process usually takes around 20-30 days, depending on the time taken by your old and new employer to verify the details.
Also know about: How many employees need for epf registration?
Documents Required for PF Transfer
To transfer your PF balance from the old company, you need to provide the following documents:
- Universal Account Number (UAN)
- PAN Card
- Aadhar Card
- Bank Account Details
- Previous Employer’s Details
Benefits of Transferring PF from Old Company
There are several benefits of transferring your PF balance from your old employer to your new employer or your own individual PF account:
- Continued Interest Earning: When you transfer your PF balance, you continue to earn interest on the accumulated amount.
- Avoiding Tax Implications: If you withdraw your PF balance, you may be subject to tax implications. However, if you transfer your PF balance, you can avoid tax implications.
- Easy Withdrawal: When you transfer your PF balance to your new employer or your own individual PF account, you can easily withdraw your balance when you retire or leave your job.
Transferring your PF balance from the old company to the new employer or your own individual PF account is an important step in managing your retirement savings. It ensures that you continue to earn interest on your accumulated amount and also helps you avoid tax implications.