This is the time of Portability. You must have heard a lot of portability right now. It starts from mobile phone number portability. Then Bank account number portability and now it comes to EPF account portability. A unique number system is coming to provident fund account. When EPF account portability comes a person could have only one provident fund account number in his entire employment life.
Till now the system of transferring employees provident fund account is a tedious and time consuming job. When an employee shift his job from one employer to another, he can either transfer his provident fund account number to the new EPF account number with the new employer or can withdraw the account.
In a few cases the employee leaves his Provident Fund account idle and never turn up to it. There is lot of such accounts with Employees Provident Fund Organization (EPFO). Now such inactive account could not earn any interest after completing three year of inactiveness.
Now EPFO plans to bring a unique provident fund account and it gives portability for EPF account. An employee can shift his job from one employer to another or from one city to another; he can have the same provident fund account number and it removes the difficulties of shifting one PF account to another. An employee can keep all his PF savings in one account and can withdraw when he finish his employment life.
This may be connected with PAN (Permanent Account Number) or Unique Identity Number. But the EPF account holder will have only one account in his entire life.
EPFO made a lot of changes in their accounting and data management and now each subscriber can know his PF account balance online through their mobile phone and can track their PF contribution. Now EPFO compelling the employers to submit their PF return and even challan through online and it facilitate timely data entry electronically.
We can hope that the long waiting to collect EPF settlement will be over and a subscriber can get good service from the organization which keeps and manage employee’s money.