Avoid These 5 Major Issues When Changing Jobs Without Transferring Your PF

Understanding the Importance of PF Transfer

Many individuals overlook the necessity of transferring their Provident Fund (PF) account when they change jobs. This oversight can lead to several complications, including halted interest accrual, tax implications, and challenges in accessing retirement funds. Below are some significant issues that may arise from not transferring your PF after a job switch.

Consequences of Not Transferring Your PF

Loss of EPF Interest: According to EPFO regulations, if a PF account remains inactive for three consecutive years without any contributions, the interest accumulation may cease. This can adversely affect your savings over time.

Tax Implications: Closing an old PF account before five years without transferring it can result in tax liabilities upon withdrawal. Withdrawals exceeding Rs 50,000 from accounts with less than five years of service are subject to TDS. However, transferring your PF can consolidate service periods, helping you avoid tax issues and retain exemption benefits.

Data Discrepancies: Each employee is assigned a Universal Account Number (UAN). If you fail to transfer your previous PF account or provide its details to your new employer, a new UAN may be created. This can lead to multiple UANs, complicating data matching, KYC updates, and fund claims.

Delays or Rejections in Final PF Claims: If you do not transfer your PF from previous jobs, the EPFO may struggle to calculate your total service period. This could result in claim rejections or delays in fund withdrawals after retirement or resignation. Frequent job changes without PF transfers can complicate matters at retirement, necessitating additional steps like UAN linking, Form 13 submission, and approvals from former employers.

Impact on Your Pension

A portion of the employer's contribution to the EPF is allocated to the Employees' Pension Scheme (EPS). To qualify for pension benefits under EPS, you must have a total service period exceeding ten years. Failing to transfer your PF can shorten your service period, potentially disqualifying you from EPS benefits. Since EPS account balances are not visible online, it is essential to monitor them and link EPS accounts through PF transfers for accurate records.

Steps to Transfer Your PF

Transferring your PF can be done online. Follow these simple steps:

• Step 1: Visit the official EPFO website.


• Step 2: Navigate to Online Services > One Member – One EPF Account (Transfer Request).


• Step 3: Select your previous employer and submit Form 13.


• Step 4: Your employer's approval is necessary to finalize the transfer.