EPF Passbook: Switching your job? Don't commit this mistake with your provident fund account

EPF Passbook: Employees' Provident Fund Organisation (EPFO) has a set of rules that each and every EPF member must follow, especially while switching jobs.

EPF Passbook: While changing jobs, employees must follow the exit rules of the current recruiter and get the relieving letter from the current employer. Photo: Reuters

EPF Passbook: Employees' Provident Fund Organisation (EPFO) has a set of rules that each and every EPF member must follow, especially while switching jobs. Generally, EPFO subscribers believe that they have their EPF account number and the UAN, which is enough to continue their existing EPF account or provident fund account, which is completely incorrect. At the time of job switch, employees need to get their EPF Passbook updated by the employer so that they can continue with the same EPF account at the new recruiter. As per the EPFO rules, unless employees exit their job, they can neither transfer nor withdraw EPF balance.

Elaborating upon the common mistakes that an EPF member commits during job switch, Jitendra Solanki, a SEBI registered tax and investment expert said, "While changing job, employees must follow the exit rules of the current recruiter and get the relieving letter from current employer. But, getting the relieving letter and full and final payment is not enough. Now, an EPF member needs to get one's EPF passbook updated by the current employers during the exit formalities as the employer needs to update the EPFO about the joining and exit date of the employer. If this is not done then the employee will have to face difficulty in continuing the current provident fund account with the new recruiter, even when he or she has the PF account number and the UAN."

See Zee Business Live TV streaming below:

TRENDING NOW

Highlighting the provident fund benefits that an EPF member can lose in case of non-updating of the EPF passbook by the previous employer, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "If EPF passbook is not updated, EPF members won't be able to do partial PF withdrawal. Apart from this, the EPF account holder would no longer remain a permanent member of the EPFO and hence his monthly PF deduction won't be possible - means employees PF account will get discontinued."

Solanki reminded that in current norms unless employees exit job, they can neither go for the PF withdrawal nor for the PF transfer. So, EPF passbook updation of the EPF member by a recruiter at the time of job switch is a must.

TAGS: