Recently EPFO launched new EPF Composite Declaration Form-11. This facility allows employees to transfer EPF automatically while changing Job. Let us see the features and benefits of the same.
What is EPF Composite Declaration Form-11?
This is the form which you have to submit with your new employer at the time of joining. Usually, the employer asks you to fill this form if the organization comes under EPF act.
Remember one thing. Suppose your salary (Basic+DA) at the time of joining is more than Rs.15,000 a month, then it is YOU who has to decide whether you be part of EPF or not. If your salary is less than Rs.15,000 a month, then you will not have any such choice to opt out (even though it increased during the tenure of employment with that particular employer).
However, if once you became a member of EPF with your new employer, then you no longer be allowed to opt out even though during your job your salary increased to more than Rs.15,000 a month.
You have to share the details like name, date of birth, contact details, date of joining, KYC details (like Bank details, Aadhaar number and PAN details.
This form will replace the existing Form 11 and Form 13. Earlier you have to submit these two forms with your new employer while joining. They used to process it offline. I saw many instances where even though you shared these two forms, your employer might be created another UAN and finally, you ended up with multiple UAN numbers. In such situations, you have to request EPFO through your current employer for the merger of such multiple UAN numbers. (Refer-Allotted two UAN numbers -How to merge or deactivate EPF UAN?).
Now with the launch of this new composite declaration form 11, I think employers stop such bad practice of creating another UAN for new employees.
How to transfer EPF automatically while changing Job?
Now you understood the importance of EPF Composite Declaration Form 11. As I pointed above, earlier the process was a physical one but not EPFO made it online and easy for you and your employers also. Using this option, you can transfer EPF automatically while changing job. There are two options here. One is online and another one is an offline mode. I explain both the process.
Transfer EPF automatically while changing job online
The online process is enabled to those employees whose UAN was linked with Aadhaar (How to link Aadhaar to EPF using online and offline?), your UAN was linked with Aadhaar but not verified or you are transferring EPF either from or to an exempted establishments.
The process of transfer EPF automatically while changing job online is as below.
1) Fill the new EPF composite declaration form 11 by providing details like name, parents name(s), Date of Birth, gender, your marital status, contact details, bank account number, bank IFSC code, Aadhaar number, PAN and date of joining of the current company.
2) Then you have to provide your previous employment details like – Company name, UAN, EPF account number, date of Joining, date of exit.
3) Finally, sign and submit this form to your new employer.
4) Your employer will then enter all these details in employer’s portal of EPFO and upload the EPF composite declaration Form 11.
5) An SMS informing the employee about the proposed auto-transfer will be sent on his registered mobile
6) However, the actual transfer will be completed only if
a) Employee, not requests to STOP such transfer within 10 days said SMS.
b) The first contribution by the present employer is deposited to the EPF account.
7) On actual transfer of the account, communication would be sent to the employee by SMS on his mobile number seeded against the UAN and by e-mail, if registered.
Transfer EPF automatically while changing job offline
This process is NOT applicable to those employees listed below.
a) You have not linked Aadhaar to EPF account
b) You linked Aadhaar to EPF account but it is not verified
c) If your old or new company belongs to the category of the exempted establishment.
In such situation, you have to fill the Form 13 and follow the existing procedure and submit the same to your employer. It may take time but no option for you.