In a bid to address premature closing of provident fund accounts, the Employees' Provident Fund Organisation has decided to transfer your PF account automatically in case of job change. This will be effective from next month.
Chief provident fund commissioner VP Joy spoke to the Times of India about the decision and said that premature closure of PF accounts was one of EPFO's main challenges, and they were trying to address it by improving services. "Whenever there is change of job, a lot of accounts are closed; then they (the employees) restart their account later on," The TOI quoted Joy as saying.
The Chief commissioner does not want people to close their PF accounts when they change their jobs and for that he has already made Aadhaar compulsory for the enrolments. "The PF account is the permanent account. The worker can retain the same account for social security," Joy said.
According to the report, the EPFO was trying to ensure transfer of money if one changes jobs in just three days. "In future, if one has an Aadhaar ID and has verified the ID, then the account will be transferred without any application if the worker goes anywhere in the country. This system will be in place very soon," Joy told the TOI.
In last couple of months, the EPFO has taken several initiatives to make the organization a service-friendly. Earlier in July, the EPFO asked its field offices to make final settlement of employees' provident fund money on the last day of retirement.
Labour Minister Bandaru Dattatreya said in a written reply to the Rajya Sabha said: "Directions have been issued by EPFO to all its field offices to make the payment of provident fund and pension to members of Employees Provident Funds (EPF) Scheme, 1952 and Employees Pension Scheme (EPS), 1995 on the date of retirement itself."
He further said: "As regards settlement of gratuity, as per Payment of Gratuity Act, 1972, the employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom the gratuity is payable."