EPFO simplifies PF transfers with revamped Form 13, floats bulk UAN allotment without Aadhaar seeding; details here

In a major reform aimed at simplifying provident fund (PF) transfers, the Employees’ Provident Fund Organisation (EPFO) has revamped the Form 13 software functionality, a move expected to benefit over 1.25 crore members.

Effective from January 2025, the EPFO has eliminated the requirement for employer approval in most transfer cases. This has significantly streamlined the PF transfer process when employees switch jobs.

Also, with the introduction of a revamped Form 13 software, EPFO has eliminated the need for approval of PF transfer claims at the destination office. This update is part of the organisation's broader effort to make PF account management more user-friendly. Once a transfer claim is approved by the source office, the PF amount will now be automatically credited to the employee's account at the destination office. This change is expected to drastically reduce the time taken for PF transfers, thus contributing to the government's initiative to ease the procedural burden on Indian workers. 

Alongside the process simplification, the revamped software functionality provides a breakdown of taxable and non-taxable PF components, which will aid in the precise calculation of Tax Deducted at Source (TDS) on interest income. This step is crucial in ensuring compliance with tax regulations while promoting transparency.

Previously, transferring a PF balance required coordination between the source and destination EPFO offices, often leading to considerable delays. Under the new system, once a transfer claim is approved by the source office, the member’s old PF account will automatically merge with the new one at the destination office, reducing processing times and improving efficiency.

Additionally, the upgraded system now separates taxable and non-taxable components of PF savings. This bifurcation will help ensure accurate TDS deductions on interest earnings, addressing a long-standing pain point for members.

The EPFO estimates that the revamped process will enable annual fund transfers worth nearly Rs 90,000 crore. 

In another notable move, the EPFO has introduced a new facility allowing bulk generation of Universal Account Numbers (UANs) for employees without the immediate requirement of Aadhaar seeding, offering greater flexibility to employers.

The EPFO has introduced a new feature that allows employers to effortlessly generate Universal Account Numbers (UANs) in bulk without the requirement of Aad seeding. This feature will be beneficial for members who have accumulated funds through exempted trusts after the cancellation of exemptions or during recovery processes.

A new software functionality has been implemented in field offices to generate UANs using existing member data. These efforts aim to simplify validation processes, facilitate automatic settlement of claims, and decrease issues related to PF account management and fund crediting.

“However, as a measure of risk mitigation to protect the PF accumulations, all such UANs would be kept in a frozen state and subsequently made operational only after the seeding of Aadhaar,” an official statement read.