A centralized system approved by the EPFO board will allow the consolidation of all PF accounts
In an employee-friendly move, the employee contingency fund organization (EPFO) has allowed C-DAC to develop a centralized IT support system that allows the consolidation of all EPF accounts of membership and remove one’s account transfer request in the event of a job change.
In a word, employees will soon not have to worry about their EPF account being transferred to a new organization while changing jobs.
This centralized system will facilitate the de-duplication and consolidation of all members’ PF accounts. It will eliminate the requirement to switch EPF accounts whenever a member changes jobs.
The EPFO Central Governing Council (CBT) made this decision during their meeting, to be held on 20 November 2021.
Currently, if someone changes jobs, a new EPF account for that person is opened in the new organization and the employee must receive his or her funds – held in the EPF account created by the previous organization – move to a new account.
This must be done online on the EPFO Sewa Member portal if the employee’s Universal Account Number (UAN) is linked to Aadhaar. If the UAN is not linked to Aadhaar, then the employee can get the funds transferred to the new EPF account by submitting the form to the new employer.
According to a statement released by the labor ministry after a board meeting on November 20, “C-DAC has approved the development of centralized IT support systems. Posting this, school functions will migrate on a central database in phases allowing for smoother operations and enhanced service delivery. The centralized system will facilitate the de-duplication and consolidation of all PF accounts of any member. It will eliminate the requirement to switch accounts when changing jobs. “
