While changing jobs many times small amounts are deposited in the old Provident Fund (PF) account of the employees. Over time, the information in such accounts gets forgotten and employees find it difficult to access the money in them. However, now there is relief news for such PF account holders. Employees’ Provident Fund Organization (EPFO) has launched two new facilities, which will simplify the process of retrieving small amounts deposited in old and inactive PF accounts. Under the new regime, balances up to ₹1,000 in eligible dormant PF accounts will be refunded without separate claim. In addition, now employees can also access their PF balance and passbook details through WhatsApp.
No need to claim separately for PF amount up to ₹1,000
EPFO has simplified the process of returning small amounts stuck in old and inactive PF accounts. As per the new arrangement, eligible inactive PF accounts with a balance of ₹1,000 or less will be automatically settled. That is, employees will not need to claim separately to get this amount.
The amount will be transferred to the bank account of the eligible employees after EPFO verifies the account holder’s identity and bank account details. According to the Ministry of Labour, this facility is likely to benefit approximately one lakh PF account holders. A total amount of around ₹ 5 crore is estimated to be deposited in these accounts.
Now PF balance can also be checked on WhatsApp
Another important feature for PF account holders has been launched by WhatsApp. Till now employees had to use EPFO’s website or other available means to get their PF account details. But now some important information related to the account can also be obtained through EPFO’s verified WhatsApp service.
Under this facility, employees will be able to know the total balance deposited in their PF account. Apart from this, one can also get the details of the last five transactions made in the account and the information related to the EPF passbook. Along with this, the members will also be guided about the procedures related to Pradhan Mantri Vishwar Bharat Rojraj Yojana (PMVBRY).
However, all the features like withdrawing PF, transferring amount from one account to another account or submitting PF claim are currently not available through WhatsApp service. Employees have to use only existing official services of EPFO for such operations.
When is a PF account considered inactive?
Many employees believe that once the contribution to the old PF account stops after changing jobs, the account becomes inactive immediately. But in fact it is not so. Having an old PF account and its deactivation are two different things.
As per EPF Scheme Rules, 1952, an account can be considered inactive if there is no contribution to the account for three consecutive years after the member attains the age of 55 years or after retirement, whichever is later. So if you have PF account of previous company, it is necessary to get information about its status and amount in it.
What to do if there is more than ₹1,000 in PF account?
EPFO’s new automatic settlement facility is currently only for eligible dormant PF accounts with balances of ₹1,000 or less. If you have more than ₹1,000 deposited in your old PF account, no need to worry. Your funds are safe and regular transfers and withdrawals are available.
Employees can transfer the amount of their old PF account to the new PF account as per the rules by linking it with the existing UAN or withdraw as per eligibility. For this one can use the official portal of EPFO and related services.
How will EPFO’s new facilities benefit employees?
EPFO manages the retirement funds of more than 8 crore members. The total value of these funds is said to be around ₹32 lakh crore. In such a situation, the new features of returning small amounts stuck in old PF accounts and accessing account information through WhatsApp can prove useful for employees.
The main objective of this new initiative is to help employees easily access their savings and to facilitate the process of returning small amounts lying in old accounts for a long time. This facility can be a relief especially for employees who have forgotten the amount in their old PF account after changing jobs.
Don’t you also want to withdraw PF money?
