Switching jobs just got easier for employees with the new EPFO reform. The Employees’ Provident Fund Organisation (EPFO) has introduced a revamped Form 13 and upgraded its software, making provident fund transfers faster and hassle-free. This move is expected to benefit over 1.25 crore members and is part of EPFO’s ongoing efforts to digitize processes, boost transparency, and reduce the procedural burden on Indian workers.
Starting January 2025, employees no longer need employer approval for most provident fund (PF) transfers. This change eliminates the need for coordination between the source and destination EPFO offices, which previously caused delays in the transfer process.
The new system simplifies the PF transfer process by allowing the source office to approve claims. After this the amount is directly credited to the employee’s account at the destination office without any further verification needed. This has made transfers faster and reduced complaints. Moreover, the updated Form 13 now clearly separates taxable and non-taxable portions of PF savings. This will ensure more accurate TDS calculations on interest earnings. This improvement improves tax compliance and transparency.
The change clears up confusion around tax liabilities, addressing a long-standing issue for PF members. EPFO estimates that these improvements will help transfer nearly Rs 90,000 crore annually, making the process much smoother. This will not only boost efficiency but also improve member satisfaction.
EPFO has launched a new feature that allows employers to generate Universal Account Numbers (UANs) in bulk, even without Aadhaar seeding. This new functionality in field offices makes it easier to create UANs using existing member data, simplifying the validation and settlement of claims, especially for workers from exempted trusts. However, to protect PF savings and minimize risks, UANs generated without Aadhaar will remain frozen until further action is taken.
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