New EPFO rule from April 1: No need of manual request for PF transfer on changing jobs, check details

A new rule regarding transfer of provident funds on job change by EPFO subscribers comes into effect from the beginning of the new financial year. Starting April 1, employees would no longer have to submit manual requests for transfer of provident funds when changing jobs.

The Employees’ Provident Fund Organisation (EPFO) has implemented the system of automatically transferring provident fund (PF) balance of employees on switching jobs.

To ensure hassle-free transition for employees, EPFO will automatically credit your PF balance to your new employer's account.

According to EPFO guidelines, a member need not to file any transfer claim on change of employment if the employee’s Universal Account Number (UAN) is seeded and it is fully KYC-compliant.

As the new EPF rules come into effect, whenever an employee joins a new job and the first month’s contribution is credited to the PF account an auto trigger for transfer will be generated. With this, the member’s past PF amount gets automatically transferred to the PF account under the new employer. This automatic transfer will be executed automatically if not stopped by the member.

Other changes in rules from April 1

Meanwhile, in another change effective April 1, the Pension Funds Regulatory and Development Authority (PFRDA) has made a 2-factor authentication system mandatory for the National Pension Scheme (NPS).

“The additional security layer, 2-Factor Aadhaar-based authentication, is being compulsorily implemented for all password-based users logging into the CRA (central record-keeping agency) system, effective from 1st April 2024,” a circular dated March 15 said.

The two-factor authentication includes an Aadhaar-based login along with the current user ID and password-based login process.

This initiative has been designed to create a secure environment for all NPS activities carried out by the government offices and autonomous bodies.

“To enhance the security measures in accessing the CRA system and safeguard the interests of subscribers and stakeholders, it has been decided to bring in additional security features through Aadhaar-based authentication for login to the CRA system,” read a PFRDA notification.