Employees will no longer require to change or close their PF accounts when switching companies or jobs.
Here comes good news for the four crore EPFO (Employees Provident Fund Organisation) subscribers! From September onwards, employees will not require to change their PF accounts even if they switch jobs.
Till now, a new employer meant a new PF account for the employee. Also, there was possibility of losing the money if the concerned employee failed to take necessary steps to reorganise the PF account or go for a withdrawal, which again was a cumbersome exercise.
Lately, the EPFO has taken several measures to make the scheme more employee friendly. Employees will now be able to retain the same PF account till their retirement. They can also transfer money in just three days of changing a job.
In addition, an employee can withdraw money for important purposes, such as housing, education of children, or serious hospitalisation. Henceforth, employees will not require to submit various certificates and pro formas either, to receive advance for medical treatment.
On completion of 20 years of an account, employees will get a loyalty bonus of upto Rs 50,000.