There is good news for employers who faced problems in transferring the provident fund accounts of their employees who chose to shift to other companies. Previously, the process to transfer the employee’s provident fund was cumbersome but with the newly introduced ‘Form 11’, issued by EPFO, the process of auto provident fund transfer has
The new form will enable EPF transfers automatically. Form 11 is likely to end the time-taking procedure which required employees to file Form-13 for provident fund account transfer on changing jobs and free new employees from filing separate EPF transfer claims. According to an order stated by EPFO on September 20, 2017, “The new composite ‘Form 11’ by EPFO will replace Form 13 in all cases of auto transfer.”
However, auto transfer of the previous PF account would be possible for Aadhar verified employees only. If the earlier UAN was not linked with Aadhaar or if the UAN was Aadhaar seeded but not verified, the member has to apply for Form-13. The existing procedure for physical transfer would be followed
in this case.
Working of provident fund auto transfer through Form 11:
1. Once the new employee has joined the new organisation, he/she has to fill and submit details through the new composite Form 11. Personal details, details about previous employment, UAN (Universal Account Number) and previous provident fund number have to be filled in.
2. The employer has to enter the information as given in Form 11 in the employer’s portal.
3. The data is authenticated with the available information against the UAN. In case of any discrepancy, the employer has to verify and update the provided information.
4. If the earlier UAN was Aadhaar seeded and verified, the declaration by the employer of transfer request made by the employee in Form-11 will trigger an auto-transfer process. This will transfer the accumulations against his previous provident fund account (PF ID) to the new provident fund account. Form No. 13 is not required to be submitted in such cases.
5. An SMS with all required information will be sent on the registered mobile number.
6. The employee should not request to stop the proposed auto transfer in order to complete the entire process. The process can be done online, or through the employer or at the nearest EPFO office within 10 days of the SMS. Thereafter, the first contribution by the present employer is deposited and reconciled.
7. The new employee will be communicated by SMS seeded against the UAN and by e-mail once the transfer is completed.