When switching jobs, many employees forget to transfer their Provident Fund (PF) account.
But this small mistake can lead to major issues later—like loss of interest, tax troubles, and delays in retirement fund claims.
Here are the 5 main problems you may face if you don’t transfer your PF, and how to fix them.
1. Loss of EPF Interest
As per EPFO rules, if your PF account stays inactive for three years, it stops earning interest. So, if you don’t transfer the PF from your old employer, your savings may not grow.
Expert Speak:
Sanjay Chaudhary, a financial advisor, says:
“Not transferring your PF stops compound interest, reducing your retirement savings. It’s best to transfer PF as soon as you change jobs.”
2. TDS and Tax Issues
If you close an old PF account without transferring it and your total job duration is less than 5 years, the withdrawal becomes taxable.
You could also face TDS (Tax Deducted at Source) if the amount is over ₹50,000.
When PF is transferred, your total job service is counted from the start. But if accounts are not linked, it is treated as a service break, affecting your tax exemption.
3. Duplicate UAN and Data Problems
Every employee gets a Universal Account Number (UAN). But if you don’t inform your new employer about the old UAN, a new UAN might be created.
This leads to issues in KYC updates, fund withdrawal, and data mismatch.
HR Expert Tip:
Meenakshi Rathi, an HR tech expert, says:
“Having two UANs can delay retirement benefits. Always use your existing UAN when joining a new job and transfer your PF immediately.”
4. Delay or Rejection in Final Claim
Not transferring your PF can cause delays or even rejection when you claim your funds at the time of resignation or retirement.
For example, if you changed jobs three times in 12 years but didn’t transfer your PF from the first two jobs, those funds may not show up in EPFO records.
You’ll have to go through extra steps like getting approval from old employers, linking UANs, and filling Form 13.
5. Trouble with Pension (EPS) Benefits
Part of your PF goes into the Employees’ Pension Scheme (EPS). To get pension benefits, your total service must be over 10 years.
If PF is not transferred, your service period appears broken. This can make you ineligible for EPS benefits. Since EPS balances don’t show online, it’s important to link them properly through PF transfer.
Easy Online PF Transfer: Step-by-Step
The PF transfer process is now completely online and simple:
Visit the official EPFO website
Go to Online Services > One Member – One EPF Account (Transfer Request)
Select your old employer
Fill and submit Form 13
The request will be processed after employer approval
Transfer usually completes in 10–20 working days.
