Planning to switch job, but worried about the hassles involved in changing the PF account? Take a sigh of relief!
Now, no longer you need to close your previous PF account in order to open a new one, while making a job shift. From September 2017 onwards, PF account of an employee will be automatically transferred to the new employer.
This new provision will support the employees to continue their contributions till the time they retire from job. Earlier, employees had to terminate their old accounts and open new ones without even being able to transfer funds in many cases.
Moreover, for Employees’ Provident Fund Organisation (EPFO) also, it was a huge challenge to handle the premature closure of accounts.
To recall, EPFO in past few months has taken a number of initiatives facilitating its 4 crore subscribers. These moves include –
- facilitation to withdraw up to 90 percent of the accumulations in their PF account for purchase of homes
- provision of loyalty-cum-life benefit up to Rs 50,000
Additionally, EPFO account holders can now withdraw money for medical treatments or purchase of equipments, to aid their physical disabilities without medical certificates.
The amendments have been made in Employees’ Provident Fund Scheme 1952, in order to avoid the requirement of submission of various certificates and pro formas to get advance for medical treatment.
Now, the subscribers will be able to avail the perks of loyalty-cum-life of up to Rs 50,000 at the time of retirement for contributing 20 years or more to the scheme.
Subscribers who have even contributed less than 20 years in case of any permanent disability, can also avail the benefits.
Other than this, to make their facility more consumer centric and enhance the ease of its accessibility, EPFO will soon be able to handle their claims through mobile app UMANG.