How to Transfer PF Online: Step-by-Step Guide | 5paisa (2024)

Introduction

Provident Fund (PF) is a retirement savings scheme introduced in India by the Employees' Provident Funds and Miscellaneous Provisions Act in 1952. Managed by the Ministry of Labour and Employment, this scheme is meant for Indian employees.

Although the PF scheme can be a very good source of savings, many individuals prefer to stay away because of the lower liquidity.

However, it is quite easy to access your PF account online and transfer money. In this guide, we will explain the different steps involved in this process for a smooth transition for your hard-earned savings.

What is a Provident Fund (PF)?

Under the PF scheme, the employee contributes a certain percentage of their salary towards the fund. This gets deducted from their monthly salary. These contributions earn a fixed interest set by the EPFO each year. Over time, the interest income on accumulated savings keeps adding up.

The employer also makes a matching contribution up to a specified limit, which gets added to the employee's PF account.

For example, if the employee contributes 10% of their salary every month, the employer also sets aside a certain amount as its PF contribution for that employee. The interest earned gets added to the total corpus built up in the employee's PF account. For FY2023-24, the interest rate on EPF is 8.15% p.a.

The primary objective of the Provident Fund scheme is to encourage long-term savings habits. It also aims to create a stable source of income for employees during their retirement years.

In terms of liquidity, the PF scheme does allow employees to withdraw their savings in times of need. Whether it is a financial emergency, medical expenses, or even educational needs, you can certainly access your PF account. However, the withdrawal process is not as fast as other investment assets like equity.

Any contributions to a PF account also come with the added benefit of tax savings. Employees can add up to ₹1.5 lakhs per year to claim deductions from their taxable income under Section 80C of the Income Tax Act.

What is the Difference Between PF & EPF?

PF is a savings scheme where the employee and the employer contribute a portion of the employee's salary. EPF, or Employee Provident Fund, is a specific type of PF offered to employees in India and managed by the Employees' Provident Fund Organization (EPFO).

Why Should You Transfer Your PF?

Here are two major reasons why one might consider transferring their PF account:
1. Job Change

When employees change jobs, they may have the option to transfer their PF account balance from their previous employer's account to their new employer's account. This helps to consolidate their savings and avoid opening a new PF account.

2. Consolidation of Accounts

An individual can have multiple PF accounts, due to changing jobs frequently. They can consider transferring their balances into a single account for ease of management. This will allow them to keep track of any previous savings.

(UAN) activated and linked to your KYC details, such as your Aadhaar and PAN. This ensures a seamless and secure transfer process by authenticating your identity and streamlining the verification process.

How to Use UAN to Transfer PF Online

The Universal Account Number (UAN) is a unique identification number assigned by the EPFO to each employee contributing to the Provident Fund. It acts as a single point of contact for all PF-related services and transactions.

The UAN is important for the following reasons:

• Online PF Services: The UAN is mandatory for availing of online PF services such as transfer, withdrawal, and checking PF balance.

• Security: UAN ensures the security of the employee's PF account as it is linked to their Aadhaar number and is accessible only with the UAN password.

• Transparency: UAN ensures transparency in the Provident Fund transfer process. It provides a unique identification number that can be used to track the status of the transfer request.

Please note that you will also require some other documents, apart from the UAN to transfer the Provident Fund account online.

Documents Required for Transferring PF Online

To transfer your Provident Fund (PF) online, you will need the following documents, including your UAN:

1. Form 13

A transfer request form must be filled out and submitted to the EPFO to transfer your PF account balance from your previous employer's account to your current employer's account. Make sure to fill out this form accurately and completely.

2. Aadhaar Card

Your Aadhaar card is a unique identification card issued by the government of India. It is required to authenticate your identity and to link your PF account to your Aadhaar details.

3. PAN Card

Permanent Account Number (PAN) card is a ten-digit unique identification number issued by the Income Tax Department. It is required to verify your tax-related information.

4. Bank Account Details

You must provide the bank account details of the account to which you want to transfer the funds.

5. Previous Employer Details

You need to provide the details of your previous employer, such as the name of the employer, the establishment code and the PF account number.

Procedure to Transfer PF Online

Please follow these steps for transfer your Provident Fund online:

Step 1: Log in to the EPFO website using your Universal Account Number (UAN) and the password.

Step 2: Under the “Online Services” tab, select “One Member - One EPF Account (Transfer Request)”.

Step 3: Check your eligibility to transfer the PF balance to another account.

Step 4: Fill in the details of your previous employer, including the employer's name, PF account number, and the state where it is registered.

Step 5: Confirm the details of your previous employer and the PF account number.

Step 6: Fill in the details of your current employer, including the employer's name, PF account number, and the state where it is registered.

Step 7: Confirm the details of your current employer and the PF account number.

Step 8: Check all the details entered in the form and click the “Get OTP” button.

Step 9: Enter the OTP received on your registered mobile number.

Step 10: Click on the “Submit” button to initiate the transfer request.

A tracking ID will be generated for your transfer request, which you can use to check the transfer status. Once the transfer is initiated, the PF balance should be reflected in your current employer's account within a few days.

How to Check the Status of PF Transfer

Transferring your Employees' Provident Fund (EPF) from one account to another can be a lengthy process. It is important to regularly check the status of your PF transfer to ensure it is progressing smoothly.

To check the status of your PF transfer:

Step 1: Log in to the Unified Member Portal using your UAN and password. This portal allows you to view details of your EPF account.

Step 2: On the dashboard, under “Services”, click on “Track Claim Status”.

Step 3: Enter the reference number of your PF transfer request. This number is provided when you submit the transfer application.

Step 4: The portal will display the current status of your PF transfer - whether it is pending, approved, rejected or completed.

If needed, you can contact your regional EPFO office for further updates on your PF transfer status. Be sure to have your UAN number and transfer claim number handy.

Things to Consider While Transferring PF Online

Transferring your EPF account online is convenient but there are a few things you need to evaluate before initiating the process:

1. Check your eligibility - You can only transfer your PF if you have switched jobs. Transfers are allowed only between PF accounts.

2. Link your UAN properly - For smooth transfer, ensure your previous and current employers have linked your UAN with their ECR data.

3. Verify KYC documents - Make sure your bank account details and KYC documents like PAN, and Aadhaar are up-to-date in your UAN.

4. Choose the right transfer option - You can opt for full or partial PF transfer depending on your needs. Review the implications of each option.

5. Track claim status - After submitting a transfer request, track its status online to know approval timelines and follow-up if required.