Online EPF Transfer and Withdrawal from July 1, 2013 – Great News !

Starting July 1, 2013 , EPF account holders will be able to withdraw or transfer their EPF accounts from one employer to another employer online. EPFO has said that they are working on setting up a central clearance house which will be operational from July 1, 2013 . One of the major problems faced by employees is to transfer their EPF accounts from one company to another when they change their jobs or to withdraw their EPF accounts after leaving their job, which takes years and months, without them having any transparency in the system and process. They are frustrated, lost and have no idea where to ask for their EPF status and to whom . Because of this delay, a lot of people just let things go and the matter drags for years and years

epf (employee providend fund) transfer or withdrawal online

You can also Track the Status Online

The best part is that you will be able to track your request online and will be able to see which stage your EPF withdrawal or transfer is ! .

Permanent EPF account number for each person

EPFO has earlier said that they are working on the permanent EPF account number where a employee once allotted a EPF account number will be able to use the same Employee provident fund number when he/she moves to another employer. The new employer will deposit the provident fund money in the same permanent account number. This will solve a lot of issues, but this would be possible only after 1-2 yrs , the first focus is on introducing a online withdrawal or transfer service.

Verification of Details after the request is put ?

Once you apply for withdrawal or transfer, the verification of all the details from employer will be done by EPFO . All you would have to do is just initiate the transfer or withdrawal request online (Its not clear how it will happen or what you need to exactly do). After that EPFO department will take charge and do their part of work by contacting the employer. Here is how the transfer would work

The member makes his transfer application at his new or old office or directly to the EPFO through an online application. The process is then taken over by the EPFO, which gets data verification from both offices and gets the transfer done immediately. Now, EPFO would do the work of getting details from both old and new offices where transfer is involved, says EPFO Commissioner Anil Swarup. – SOURCE

This will help 50 million Employee provident fund account holders , lot of paper work will be saved and surely the harassment will reduce . (Read how you can withdraw/transfer your EPF , if your employer is not supporting or helping you) . at this moment , a lot of withdrawal’s happen because employees know that its more easier and do not want to take chance for future issues due to the complex process. Hence this move will help a lot to EPFO department in retaining employees with their EPF’s .

What should you do right now ?

While the EPFO has said that this will be operational from July 1, 2013 , still there might be delays from their end (you know how deadlines work in real life , remember what happened with DTC (Direct Tax Code) ?) . If you can really afford to wait and want to try out this online system, then wait for 2-3 months and then give this a shot, else follow the usual process at this moment.

Conclusion

While its a welcome move and we should trust the EPFO department, still you know what happened with the EPF Online Passbook system by EPF , which is not up-to the mark and there are tons of issues with it. It might happen that this online EPF transfer and withdrawal system is built , but there can be huge disappointment with the way it would work . We can only wait and watch at this moment.

What do you feel about this move ? A lot of people might have faced bad experience while transferring and withdrawing their EPF accounts and would have wondered why dont EPFO makes every thing online. Now it comes !

128 CommentsAdd Comment

  1. Subha

    Hello Manish,

    I am leaving my organisation after working for last 3.5 years to pursue higher studies. In that case I will not be having a job for next couple of years.
    In this situation should I close my EPF account and withdraw the money?
    If I do not close the account then what could happen? Will I be able to use the same account when I get a job again in future after completion of my studies?

    Thanks in advance.

    Regards,
    Subha

  2. Surendra

    Hello manish,
    I worked with a Company A for 2 years till April 2014. From April 2014 to September 2014 I workrd with Company B. Presently, I am working with another company. I raised request to withdraw the PF amount of Company B and got the same. The problem is with the PF amount of Company A. When I left Company A, I raised a request to transfer the amount to Company B’s PF account but till now its not been transferred. Now I am confused whether the amount will be transferred somewhere in the coming months or not (as I have already withdrew all the money in it) or should I cancelled the request and raised a new request to transfer the same to my present company’s PF account?
    Please help.

  3. guest

    I am still not clear as to how the author of that article arrived at 50% higher savings, but what you have stated does make sense – saving early helps avoid need to plan for investing towards end of financial year!

  4. Rakesh

    Hi Manish,
    Can you reply to my query sent on December 5, 2014 at 9:32 pm
    My question was “In my UAN my father name is showing incorrect. Is it this will be a problem during the time of PF withdrawal?”

      • guest

        If a person’s investments already meet the 80C limit, is there any benefit in increasing PF contribution beyond the compulsory 12% of basic salary? I understand that interest from EPF is tax exempt and is a safe investment, but is there any other way by which it reduces tax to be paid? In the blog post ratrace2freedom dot blogspot dot in, specifically in an article titled voluntary-provident-fund-vpf, it is mentioned that since VPF goes from pre-tax income, it offers 50% higher return than same amount invested in PPF. I do not understand how that was calculated.

  5. Somesh

    Hi Manish,

    Great articale as always…..
    May be I have missed but just want to know is there any article on jagoinvestor on the whole online process of PF transfer and withdrawl(dont think u would have missed that:-)) after the process is online. This article is general and was published before the online process into play.
    May be a exact process infor and links might help people in a more staraigh way(As I have to google a lot for this…rest things i find easily on jagoinvestor).

    Thanks
    Somesh

  6. Rakesh

    Hi,
    In my UAN my father name is showing incorrect. Is it this will be a problem during the time of PF withdrawal?

    After how many months I should apply for PF withdrawal after quitting the from the company? And approximately after how many months it will be credited to my bank account.

    Please also suggest me the best and fastest way to apply for PF withdrawal

    Regards,
    Rakesh

  7. Kirti

    Hi,

    I left the first job and join second. I had not applied for PF transfer. I work in second for 2 months and then join 3rd job. I had withdrawn the PF for 2nd job as it is for 2 months only. Now is it possible to transfer PF balance from my 1st employer to PF account with 3rd employer.

  8. Mahadevan

    Dear Manish,

    My employer made it clear that PF transfer can only be done online. Tried this but got the following message. Any suggestion on how to crack this??

    “Since membership details in respect of member ID TNMASxxxxxxx000yyyyyyy is not available on the portal, you cannot submit the transfer claim online. It is advised to submit physical claim thorough previous or present employer”

    Thanks in advance.

  9. mono

    A NEW INFORMATION IF ITS GOOD FOR ANYONE…
    I APPLIED FOR ONLINE TRANSFER IN SEP AND SUBMITTED HARD COPIES
    TO MY PREVIOUS EMPLOYER..
    BUT IT WAS SHOWING waiting to get approved from previous employer..
    checked with previous employer…he said that he cant see anyone like me in his approval of epf page….just some days back..i registered for UAN…and then after couple of days the appove from previous employee is showing..
    earlier i saw the status..of epf transfer ..its was showing rejected.( no record exists in database..blah blah )….I think registering with UAN…solves this problem of epf transfer..

  10. Aaisha

    I quit working with an entity of a company and was supposed to withdraw my PF as I had completed 7 years in the orgn however after 5 months of working in a different company , I rejoined a different entity of the same company where i completed 7 years. When i was filling my forms the HR confirmed that I should be able to withdraw my PF and so i applied for a new account however now I am told that I have to transfer my PF to new account of the current company. How should I proceed as I had completed 7 years in the 1st company will my no. of years start from 1st year in the new company (different entity of the same co.)? Am I at loss here?

  11. monomono

    clciking the preview button
    it shows
    success:in a pop up with an ok button ..
    clicked th eok button ..but the next page is not coming

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