With the new financial year, the government has introduced a new set of rules for the EPF. Many new tax rules announced by the Finance Minister would come into effect from 1 April 2024. Read the article to familiarize yourself with the new EPF rules to avoid problems.
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New EPFO Rules
Employees Provident Fund (EPF) is an initiative by the government of India, where the government, employer, and employees contribute to the provident fund and pension scheme for the workforce engaged in the organized sector of India.
The government has introduced new EPFO rules to make it more convenient for employees with the new financial year.
The revised guidelines will come into effect from 1 April 2024, so beneficiaries can utilize the new EPFO rules issued by the government.
According to the EPFO provisions, the employer and employees both contribute 12% of the employee’s basic salary to the EPFO account of the EPFO member.
As per the new EPFO rules, when an employee changes his working company, their previous balance of provident fund will automatically transfer to the new employer.
The automated transfer system will reduce many hassles for the employees and employers for PF transfers.
Previously, the EPFO has updated the rule to contribute more than the statutory limit for EPFO subscribers. As per the rule, the members must submit a joint request under the 1952 EPF scheme.
Benefits of the New EPFO rules
The new EPFO guideline related to the automated transfer system will offer the following benefits to EPFO members:
- Easy Transition to a new job: The employees can easily join the new workplace without worrying about PF transfers and the hassle that comes with the process. You can completely focus on your new job and the aspirations you hold with your work transitions.
- Convenient: The new rule would make it more convenient for EPFO members to easily transfer the EPFO balance to the employer without manually requesting the PF transfers.
- Fast & easy process: Previously, the PF transfer took about 20 days when the person requested a PF transfer online. Now, with an automated PF transfer system, your PF balance will be automatically credited to your new employer’s account, making the process more simple and seamless for EPF members.
- Continuity in EPFO savings: The automated PF transfer would be beneficial for the continuity of your retirement savings and would come in handy in your old age life. With the automated system, there will be no delay in the PF transfer system, making no gap in your EPF payments.
How does the automated PF transfer work?
According to the EPFO announcement, the system will generate an automatic trigger when the employees join the new job and the first month of PF contribution will be received in the account.
The UAN number must be KYC compiled for generating the automated transfer of the PF to the employer’s account.
The EPFO member can track the status of the PF transfer on the portal to check the successful PF transfer when you change jobs.
Steps to register on EPFO to avail of the EPF benefits?
The new employees looking to register for the EPFO services can follow the below steps:
- Go to the EPFO Unified Portal https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- Next, move to the bottom of the right-hand side of the website and look for the “Activate UAN” in the Important Links section of the portal.
- Now, click on that and enter the UAN number provided by your employer, your Aadhar card number, DOB, Member ID, and Name.
- Next, enter the captcha on the box and tick on the consent to share details.
- Now, after you enter all the required details, click on the first option, “Get Authorization Pin,” to receive the OTP.
- Next, enter the OTP for verification and set the password.
- Now, your UAN will be activated after you set the password, and you can check your EPFO account with your UAN and password details.
How to track your EPF balance on the EPFO website?
The EPFO members can track the EPFO PF easily online through the following steps:
- Go to the EPFO website https://www.epfindia.gov.in/site_en/index.php
- Next, find the e-Passbook page on the right-hand side of the website.
- Click on the Passbook page and log in to the portal via your UAN (universal account number) number and your password.
- Now, fill out your Member ID and the details of your EPF funds will display on your screen.
With the automated transfer system, the tracking of the EPF system would become hassle-free as now the employees would not need to request the PF transfer manually. With new EPF rules, the government has brought many tax changes and two-step authentication to enhance the NPS security.
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