EPF Transfer Guide: Why You Should Move Your PF Account Instead of Withdrawing After a Job Change
When it comes to retirement planning, especially for private-sector employees in India, the Employees’ Provident Fund (EPF) plays a crucial role. Despite this, a large number of employees end up withdrawing their EPF balance whenever they switch jobs. While this may provide short-term liquidity, experts strongly advise against it, as it can significantly reduce the retirement corpus you could otherwise build. Instead, the smarter approach is to transfer your EPF account to the new employer and let the fund grow steadily until retirement.
Why EPF Is a Key Pillar of Retirement Savings
The EPF scheme is designed to ensure long-term financial security for salaried employees. Every month, 12% of an employee’s basic salary (plus dearness allowance) is contributed to the EPF account. The employer matches this contribution, which means a total of 24% of basic pay is deposited monthly.
For the financial year 2024–25, the interest rate on EPF is 8.25%, making it one of the most attractive and safe retirement-saving instruments in the country. Over decades of consistent contributions and compounded interest, the balance can grow into a substantial fund—something many employees underestimate.
The Hidden Loss of Withdrawing EPF Early
Many employees withdraw their EPF when they change jobs, either due to lack of awareness or the lure of immediate cash. However, financial experts caution that this practice not only disrupts retirement planning but also prevents individuals from benefiting from the power of compounding. Even a few years of compounding can significantly increase the maturity amount.
By transferring your EPF account instead of withdrawing, you ensure uninterrupted growth. Moreover, the Employees’ Provident Fund Organisation (EPFO) has simplified the transfer process with a fully digital system, reducing the need to visit physical offices.
How to Transfer Your EPF Account Online
Experts recommend initiating the transfer within six months of changing jobs. The process is simple and can be completed on the EPFO website:
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Login to the EPFO member portal using your Universal Account Number (UAN) and password.
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Go to the “Online Services” tab and select “One Member – One EPF Account (Transfer Request).”
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Verify your personal details and enter the information of both your previous and current employers.
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Choose whether the attestation will be done by your old or new employer.
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Click “Get OTP,” enter the code, and submit your request.
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A tracking ID will be generated, along with your PF account details.
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Print Form 13, sign it, and submit it to your employer within 10 days.
Once your employer and EPFO approve the request, you will receive an SMS notification. The transfer typically takes two to three weeks to complete.
Monitor Your EPF Account and Salary Slips
Employees are also advised to keep track of their salary slips and regularly check their service history on the EPFO member portal. This helps ensure contributions are deposited correctly and transfers are processed smoothly.
If you started working after September 2014, note that the Employees’ Pension Scheme (EPS) benefit is available only if your basic salary is below ₹15,000. Being aware of these rules ensures you don’t miss out on entitled benefits.
Final Word: Build Wealth for the Future
Withdrawing EPF prematurely may solve short-term financial needs, but it comes at the cost of long-term security. By simply transferring your account whenever you change jobs, you safeguard decades of contributions and interest accumulation. Over the years, this disciplined approach can result in a sizeable retirement corpus, giving you financial independence and peace of mind after you stop working.
In short, the message is clear—don’t break the chain of savings. Transfer your EPF account, stay invested, and let the power of compounding reward you with a strong retirement fund.
