Millions of employees working in the private sector consider Employees Provident Fund (EPF) as important in planning their retirement. Every month the basic salary of the employee and 12 percent of the DA is deposited in the EPF account. Also, employers (employees) also contribute equally. This amount keeps increasing through EPF account and increasing through compounding for a long time. The interest rate on EPF for Financial Year 2024-25 has been fixed at 8.25 percent, which is quite attractive compared to other market options.
EPF may have to be expensive as soon as the job changes
It has often been seen that many employees withdraw the amount of EPF while changing the job. Experts say that this decision can cause major damage in a long time. The money deposited in the EPF remains for years and gives full advantage of compounding, which makes a big fund at the time of retirement. Therefore, the EPF account should be transferred to the new employer as soon as the job changes. EPFO (Employees Provident Fund Organization) is constantly trying to make this process easier. Now it has become very easy to transfer EPF through digital medium, due to which the employee does not have to go round the EPFO office.
How to transfer EPF account?
If you have changed or are about to change the job, then it is very important to understand the process of EPF transfer. Especially for those who have started jobs after September 2014. Keep in mind, if your basic salary is less than Rs 15,000, then you will get the facility of Employee Pension Scheme (EPS).
Every month salary should be kept on slip so that information about basic salary and salary structure is available. You can also check your service history by visiting the EPFO website, which shows whether your EPF account is being updated properly or not.
Get transfer within six months
Experts recommend that EPF account transfer should be applied within six months of changing the job. After this, one has to face any problem. Going to the EPFO website, login with your universal account number (UAN) and password.
Go to the online services section and choose the One Member-One EPF account (transfer request) option. Verify your personal information, enter the details of the old and new employer. You can choose one of the older or new employers for the claim attation.
After this, click on the Gate OTP and submit it by adding OTP received. You will get information about a tracking ID and PF account. Sign Form 13 and sign and submit it to your employer within 10 days. After the approval of both employer and EPFO, you will get information from SMS. Usually your EPF will be transferred within two to three weeks.
EPF keeps retirement safe
Regular investment in EPF not only makes your retirement safe, but it also teaches you financial discipline. While changing the job, avoid withdrawing EPF money and keeps transferring. This work of EPFO has become easier through digital medium. This will not only increase your funds, but you will have a strong financial security at the time of retirement.