ORG2 can create new PF account under the same UAN. Payroll of ORG2 will take care of it. You can join ORG2 and continue working without waiting for this. Transfer PF of ORG1 to ORG 2.
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Create new provident fund account while old one still active
Dear Sir, If person A was workign in a organization ORG1 for 1 month and his PF account got created, now he had to leave this organization due to cancellation of project from client side, now if he is offered a new job is the new Employer ORG2 allowed to create a new PF account under the same UAN number ? person A has already spoken to payroll of ORG1 and they have said 45 days is required to close old PF account ? is this person A now in a situation where he has to wait until 45 days or he is legally allowed to work at ORG2 ?
Asked 1 year ago in Income Tax
dear sir in above situation is ORG2 allowed by epfo by any means to create new pf account ?
Asked 1 year ago
Hi
Please note that
Your ORG 2 can open a new account under the same UAN and you can continue your work in ORG 2 and meanwhile you can initiate the process of PF Transfer from ORG 1 to ORG 2(Its an online process).
I hope that helps.
Thanks
Hello,
When a person, let's call them Person A, transitions from one organization (ORG1) to another (ORG2), there are certain considerations regarding their Employees' Provident Fund (EPF) account. In this scenario, Person A had worked at ORG1 for only a month before needing to leave due to a project cancellation. Here's how the situation can be approached:
Creating a New PF Account Under the Same UAN: Person A's Universal Account Number (UAN) remains constant throughout their career, regardless of the employer changes. This UAN is linked to the EPF account and carries over from one job to another. Therefore, when Person A joins ORG2, it is permissible for ORG2 to create a new PF account under the existing UAN. This ensures that all contributions are consolidated under one UAN, simplifying management and tracking of funds.
Initiating PF Transfer: While Person A can begin work at ORG2 and have a new PF account created under the same UAN, it's advisable to initiate the process of transferring the funds from the previous PF account with ORG1 to the new account with ORG2. This transfer process can be easily done online through the Unified Member Portal (UAN portal) provided by the Employees' Provident Fund Organization (EPFO).
Consideration for the Waiting Period: It's noted that ORG1's payroll department mentioned a 45-day period to close the old PF account. While this may be the processing time they require, it does not necessarily mean that Person A must wait for 45 days before starting work at ORG2. The two actions – joining ORG2 and initiating the PF transfer process – can be pursued concurrently.
Conclusion: In summary, Person A can join ORG2 and have a new PF account created under the same UAN. Simultaneously, they can initiate the process of transferring funds from the old PF account with ORG1 to the new one with ORG2 through the EPFO's online portal. This ensures that their EPF contributions remain consolidated and simplifies the management of funds throughout their career. The 45-day processing period mentioned by ORG1 should not hinder Person A from joining ORG2 and pursuing the PF transfer process simultaneously.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
In most cases, when a person changes jobs, they can use the same Universal Account Number (UAN) for their Provident Fund (PF) account, even if they switch employers. The UAN remains the same throughout a person's career, and new PF accounts are linked to the existing UAN. This is part of the efforts by the government to streamline the PF withdrawal and transfer processes.
In the scenario you described, Person A should provide their existing UAN to their new employer, ORG2. ORG2 will then create a new PF account linked to the same UAN. This ensures that the PF accounts are consolidated under the same UAN, making it easier to manage and transfer funds in the future.
Regarding the situation of waiting for 45 days to close the old PF account from ORG1, it's important to note that the closure or transfer of a PF account can take some time due to administrative processes. However, this should not necessarily prevent Person A from starting work at ORG2.
If Person A is in urgent need of joining ORG2 and cannot wait for the 45 days to close the old PF account, they can still begin working at ORG2. The closure of the old PF account can continue in parallel. The key point is that the PF accounts will eventually be consolidated under the same UAN.
It's recommended that Person A keeps their new employer, ORG2, informed about the ongoing process with the previous PF account from ORG1. ORG2's HR or payroll department can provide guidance and assistance in ensuring that the new PF account is linked to the existing UAN.
As rules and regulations can vary by country and region, it's advisable for Person A to consult with their HR department at both ORG1 and ORG2 or with relevant government authorities to ensure they are following the correct procedures based on their specific circumstances and the laws in their jurisdiction.
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