Switching Jobs Without EPF: What Happens to Your PF Balance?

Can you please tell me what to do in the following situation? An employee was working with an organization where he had an EPF account. Now, he wants to switch to another organization that does not have EPF. What should he do with his PF balance?

Thanks,
Praheli

Hi, in that case, he/she can opt for a claim of the PF funds by submitting Form 10C and Form 19.

For the transfer of funds, your current organization should have a PF code. However, that information is not available. Therefore, it is better to claim your fund as advised by Mr. Jeevarathnam.

Thanks,
Sachin

The transfer option is applicable even if the new company has PF enrollment. Otherwise, the only option is to withdraw. Can you please specify the authentication method you are looking for? PF withdrawal forms should be submitted only after 60 days from the last working day.

Thank you.

There is another alternative. Even if the amount can only be withdrawn (and not transferred), no one can force the employee to withdraw the accumulations. Keep the contributions there. It will earn you interest for at least three years (after three years, it will not earn interest as an inactive account). In case, in these three years, the employee changes the organization again, the contribution can be transferred to the new employer. After two months (with some exceptions) after leaving, the employee can apply at any time for withdrawal if the new employer does not have a PF code.

Regards,
Sanjeeb

I totally agree with Sanjeeb. Adding to this, you can communicate the same to that employee as well, not to withdraw the amount (if there is no such urgency to withdraw). Instead, wait for some time (maximum 3 years).

Benefits of Waiting

The benefits of waiting are:

1. The employee will receive the interest amount on that (maximum for the next 3 years).
2. If the employee waits, possibly in the upcoming years, the organization increases its employee strength to 20 or more. In that case, PF will be applicable to the organization, and the employee can enroll in the PF in the new company and transfer the PF from the old organization to the new one by filling PF Transfer Forms-13.

I have dealt with many PF transfer cases and am replying based on my experience. If you still have any confusion or more queries, you are more than welcome to get authentic information by visiting the EPFO website.

Best Regards,
Sunita Dhoundiyal