Big EPFO Update: Switching Jobs To Get Easier After EPFO’s New Rule

April 1 is a crucial day as a large number of latest tax rules that Finance Minister Nirmala Sitharaman declared in the budget got effective on April 1, 2024. It is important to stay updated about the such changes as they can impact your pocket and finances. One such vital change that has taken place is related to EPFO.

The Employees' Provident Fund Organisation (EPFO) has introduced a latest system that will automatically transfer your provident fund balance to the new employer's account when you decided to change your job. After the latest update, you do not have to submit any manual request to transfer your current PF funds to new employer's account.

After the update, EPFO will automatically transfer your provident fund balance to the new employer's account thus allowing a hassle-free continuation of your savings meant for retirement days. The latest update has emerged as a huge relief for employee portability and it will streamline the procedure of handling your provident fund across various employers.

Now employees will no longer face any hassle while shifting from one job to another when it comes to managing and continuing their retirement savings.
As per the EPF regulations, employees are required to contribute 12% of their monthly basic salary while employers need to match this particular contribution.

Previous Updates: Earlier, the Employees' Provident Fund Organisation (EPFO) made changes to standard operating procedure (SOP) for securing joint declarations for correcting mistakes in members' and employers' Universal Account Number (UAN) profiles, along with the manner of adjustments to be pursued by field offices. If you are in need to introduce changes related to your name, address, or other vital information that you desire to make to your EPF account, you need not worry any longer. You will be able to introduce these changes by just filling a joint declaration form online. It is known as "joint" because it is combined where employee and employer sign to introduce changes.

What Is Joint Declaration Form: It is an Employees' Provident Fund (EPF) form that has been used for modifying Provident Fund (PF) member information. The combined form needs to be signed by employee and employer and required to be submitted to the regional PF commissioner to update inaccurate information filled in the employees' PF accounts.

Changes to SOP: According to the SOP amendment notification issued by EPFO on March 11, 2024, applicant can now submit Aadhaar card of the member bearing father/mother's name, PAN card, 10th or 12th marksheet bearing father/mother's name and driving license at the time of applying to introduce changes to their parents' names.

What Documentary Proof You Will Need?
All big and small corrections requests must be supported by documentary proof. If it is a minor change, at least two documents would be required from the list of documents attached in Annexure-I with relevant parameters of change. If there are major changes, at least three documents would be required to be submitted by the applicant from the list of documents attached in Annexure-I with respect to the particular parameters in those changes.

What Changes Can Be Made?
To make changes in any of the 11 parameters, you must use joint declaration form. These parameters include DOB, gender, name of mother & father, relationship, marital status, joining date, leaving date, reason for leaving, nationality and Aadhaar number.