EPFO revamps PF transfer, UAN generation process to benefit over 1.25 crore members

New Delhi, April 25: In a major reform aimed at enhancing user convenience and operational efficiency, the Employees’ Provident Fund Organisation (EPFO) has simplified the process for transferring Provident Fund (PF) accounts through an upgraded Form 13 functionality.

The move is expected to benefit more than 1.25 crore members and facilitate the seamless transfer of nearly Rs 90,000 crore annually. According to a press release issued by the Ministry of Labour on Friday, the EPFO has “greatly simplified the process for transfer of PF account on change of jobs by removing the requirement of approval from employer in majority of the cases.” Previously, PF transfers required coordination between two EPF offices—the one transferring the funds (source) and the one receiving them (destination).

Now, with the launch of the revamped Form 13 functionality, EPFO has eliminated the need for destination office approval. “Henceforth, once the transfer claim gets approved at the Transferor (Source) Office, the previous account will automatically get transferred to the present account of the member at the Transferee (Destination) Office,” the release stated.

The enhanced system also introduces bifurcation of taxable and non-taxable components of PF accumulations, which the EPFO says will “facilitate accurate calculation of TDS on taxable PF interest.” In a parallel initiative aimed at improving the “Ease of Doing Business,” EPFO has also relaxed the mandatory Aadhaar requirement for generating Universal Account Numbers (UANs) in specific cases.

This decision is targeted at addressing long-standing grievances, particularly related to “proper accounting of the past accumulations that had been remitted to EPFO by the Exempted PF Trusts consequent to the surrender/cancellation of exemption.”

As per the release, “a facility for bulk generation of UANs based on the Member Id & other member information available on record… has been provided.” The software functionality has already been deployed across field offices, enabling bulk UAN generation without Aadhaar for such members. However, as a precaution, the EPFO clarified that “all such UANs would be kept in a frozen state and subsequently made operational only after the seeding of Aadhaar,” ensuring protection of the members’ PF accumulations.

The organization believes that these reforms will “significantly improve services to members and reduce long-standing grievances,” while also streamlining claim settlements through improved validations.