Smart things to know about transfer of EPF account

1) The contributions to the Employee Provident Fund (EPF) account are made by the member (employee) and the employer. A new account is opened every time the employee changes jobs.

2) The contributions made by the previous employer and employee, as well as the interest earned on it, continue to be held in the previous account unless it is transferred to the new one.

3) The older accounts can become inoperative and may not earn any interest. The EPF accounts become inoperative if no contribution is made for a continuous period of 36 months.

4) Since no interest is paid on the balance in inoperative accounts, it is essential for employees to get this amount transferred to the new EPF account and earn interest on the consolidated amount.

5) The EPFO has launched its online transfer facility from October this year. The employees will be able to request for such transfers through its Online Transfer Claim Portal (OTCP).

The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.