EPF Account Merger: Within the private sector, job switching is not uncommon. Sometimes people move occupations in search of greater opportunities when they don’t get along with their boss. However, your new EPF (Employees Provident Fund) account is opened at the new firm when you change jobs.
Understanding the Creation of a New EPF Account
Because of this, individuals frequently wonder why a new EPF account was formed when there was already one in the prior employer. What is going to happen with the old EPF account now? Is it possible to combine the two accounts? We’ll answer all of these inquiries for you.
Introduction to Universal Account Number (UAN)
Your employer must open your EPF account when you start working for a private company with 20 or more workers. In this case, the worker’s financial future is equally impacted by the employer and the worker.
The Employees’ Provident Fund Organisation (EPFO) issues a Universal Account Number (UAN) to new EPF account holders. The firm registers a new EPF account for you when you move employment, but your UAN doesn’t change. There are several EPF accounts under a single UAN for this reason. Also, your PF balance appears differently. It will not appear the same unless you combine all of your accounts.
Combining Multiple Accounts
The procedure is rather simple if you also wish to combine all of your EPF accounts into one location.
- Visit the website https://www.epfindia.gov.in.
- Select the “For Employees” option found under “Services.”
- Select the option for One Employee, One EPF Account.
- Log in with your password, captcha, and the new UAN page.
- The details of the previous EPF account will be shown on the next page.
Benefits of Merging EPF Accounts
Your whole work history will be combined in the UAN if all of your EPF accounts are merged. For instance, after combining your accounts, your total experience will be 6 years if you had worked for three different organisations for two to three years. These items will have separate counts if you choose not to consolidate the accounts. In this instance, you will additionally be required to pay TDS (Tax Deduction at Sources) of 10–10 percent when you take money from your EPF account.