New Delhi, august 12: The Employees Provident Fund Organisation (EPFO) made a welcome change to its regulations under which, an employee's Provident Fund (PF) account will be transferred upon job change, instead of being closed.
According to chief provident fund commissioner VP Joy, the main hurdle before them is premature closure of accounts which happens after employees change their jobs. Employees have to take care of a lot of paperwork before joining a new company and amid all the tension, people close their accounts and restart it later.
To avoid this, Employees Provident Fund Organisation is taking efforts to make the whole transfer process employee-friendly. Automatic PF account transfer will let employees continue with their accounts and not open new accounts without transferring funds.
Among other things, now Aadhaar is also mandatory to enrol for EPF. As per Joy, PF account is permanent and can be used for social security. He also advised that money should only be withdrawn from the account for important purposes like housing, education, hospitalisation or marriage.