Hi Team,
Looking for guidance on PF. I work with a start-up that has less than 20 members, and we are yet to start our PF account owing to this reason. I have received a request from one of our current employees asking for advice on PF transfer from his previous company. The employee has been asked to transfer/Withdraw PF from previous organization to his current PF account. Since he doesn't want to withdraw, the transfer is the only option but he is not sure where to transfer since our current organization's PF account is not yet active.
Also note that PF in his previous organization was managed by 3rd party vendor which was managed separately and wasn’t linked to his government provided UAN. He has a UAN number where all the companies PF account numbers where he has worked so far except his previous organization are listed.
Can you please guide/advise on this process. Is there an alternative to transferring his previous organization PF to one of the old PF account under UAN?
Kindly advice as to how to address this issue.
Thanks.
From India, Chennai
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Looking for guidance on PF. I work with a start-up that has less than 20 members, and we are yet to start our PF account owing to this reason. I have received a request from one of our current employees asking for advice on PF transfer from his previous company. The employee has been asked to transfer/Withdraw PF from previous organization to his current PF account. Since he doesn't want to withdraw, the transfer is the only option but he is not sure where to transfer since our current organization's PF account is not yet active.
Also note that PF in his previous organization was managed by 3rd party vendor which was managed separately and wasn’t linked to his government provided UAN. He has a UAN number where all the companies PF account numbers where he has worked so far except his previous organization are listed.
Can you please guide/advise on this process. Is there an alternative to transferring his previous organization PF to one of the old PF account under UAN?
Kindly advice as to how to address this issue.
Thanks.
From India, Chennai
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Dear Colleague,
As per the provisions of the Employees Provident Fund (Miscellaneous Provisions) Act 1952, the PF accumulations can be transferred from different account numbers, but the UAN number of the member will remain the same and will not change at all. Whether it is a Private Trust managed PF or a Government PF, all have one single UAN number for a member.
Hence, there is no possibility of any 3rd party involvement here. The member needs to closely check and understand the issue. The accumulations are to be transferred to the current employment-based Account Number under the same UAN number by submitting the necessary application. This transfer can only be completed once your establishment is registered, and you have obtained your Establishment Code number. Until then, or until the member changes to their next employment where their future establishment has a PF establishment code, the transfer can be initiated.
After consulting your PF Enforcement Officer, consider the following options:
- If you have employed a larger number of PF members in your current organization, the existing PF covered members should not lose out on the PF and EPS benefits. In this scenario, voluntarily register your establishment for PF coverage and obtain a code number for your establishment.
- If you are only employing one or two individuals who were previously covered under PF/EPS, consult your PF Enforcement Officer. You can keep the employee as "exempted" without PF deductions until your establishment falls under the coverage of PF (if you choose not to voluntarily enroll until the Act mandates it).
These are suggestions, and you may also seek advice from other colleagues for additional insights.
From India, Chennai
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337As per the provisions of the Employees Provident Fund (Miscellaneous Provisions) Act 1952, the PF accumulations can be transferred from different account numbers, but the UAN number of the member will remain the same and will not change at all. Whether it is a Private Trust managed PF or a Government PF, all have one single UAN number for a member.
Hence, there is no possibility of any 3rd party involvement here. The member needs to closely check and understand the issue. The accumulations are to be transferred to the current employment-based Account Number under the same UAN number by submitting the necessary application. This transfer can only be completed once your establishment is registered, and you have obtained your Establishment Code number. Until then, or until the member changes to their next employment where their future establishment has a PF establishment code, the transfer can be initiated.
After consulting your PF Enforcement Officer, consider the following options:
- If you have employed a larger number of PF members in your current organization, the existing PF covered members should not lose out on the PF and EPS benefits. In this scenario, voluntarily register your establishment for PF coverage and obtain a code number for your establishment.
- If you are only employing one or two individuals who were previously covered under PF/EPS, consult your PF Enforcement Officer. You can keep the employee as "exempted" without PF deductions until your establishment falls under the coverage of PF (if you choose not to voluntarily enroll until the Act mandates it).
These are suggestions, and you may also seek advice from other colleagues for additional insights.
From India, Chennai
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Thank you, Dr. Sivakumar, for your valuable and timely advice.
Just to add to my query, the employee's previous organization is an exempted trust. Hence, the only way out here would be to advise the employee to withdraw the money, given that it will take time for us as an establishment to register with EPF and get our establishment code, etc., even voluntarily.
Thank you
From India, Chennai
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Just to add to my query, the employee's previous organization is an exempted trust. Hence, the only way out here would be to advise the employee to withdraw the money, given that it will take time for us as an establishment to register with EPF and get our establishment code, etc., even voluntarily.
Thank you
From India, Chennai
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