EPFO: Why It Is Important To Merge PF Accounts? Here’s How To Do It

Getting acquainted with new duties and responsibilities, adjusting to new environment and gelling up with colleagues are some of the few challenges that a new job brings to us. But changing jobs often leaves employees with multiple Provident Fund (PF) accounts under a single Universal Account Number (UAN).

Funds from previous PF accounts don't automatically get transferred to the new one, and often EPFO subscribers are required to merge their PF accounts. Here is a complete step-by-step guide to merge EPF accounts.

How To Merge PF Accounts?

To merge PF accounts, employees must ensure that their Know Your Customer (eKYC) is complete, including Aadhaar, bank account and PAN verification. Follow the below mentioned steps to merge PF accounts.

-Visit the EPFO website and log in with your UAN and password.
-Now click on the 'Online Services' tab and select 'One Member - One EPF Account'.
-Fill out the necessary information like your name and UAN.
-Generate OTP after filling in your details, and cross checking it.
-Enter the OTP sent to your registered phone number and verify it.

-In the subsequent pop-up window, provide details of your earlier PF accounts that you wish to merge. Finally, tick the declaration box and submit your request.

Is There Any Other Method To Merge Accounts?

In case you have multiple UANs generated in your name. You can request EPFO to deactivate your previous UAN by emailing [email protected]. Include both current and previous UANs in your message. EPFO will verify and deactivate the old UAN after processing your request.

You also need to submit a claim request for transferring service and funds from the old UAN to the current one. This ensures all funds are consolidated under one account for easier management of retirement savings.

What Is The Benefit Of Merging PF Accounts?

Merging PF accounts helps consolidate funds into one account, simplifying tracking and management of retirement savings. It reduces complexity by eliminating multiple login credentials and related information. Maintaining a single account streamlines management processes significantly.

Additionally, merging accounts combines employment history into a continuous service record. This offers tax benefits as EPF withdrawals become tax-free after five years of continuous service. Withdrawing more than Rs 50,000 before completing five years attracts a 10% Tax Deducted at Source (TDS).

KYC Update Post PF Account Merger

After merging PF accounts, it's essential to update KYC information if needed. Ensure Aadhaar, PAN, bank account details, and contact information are accurate and up-to-date. Regularly monitor your PF balance through the EPFO portal to keep track of retirement savings effectively.