EPFO reforms: Now you can correct details, transfer PF without employer approval; here’s how

The Employees Provident Fund Organisation (EPFO) is changing. In a major reform, announced on Saturday, and aimed at streamlining the administrative process, the EPFO has introduced a significant simplification in its joint declaration system. Employees can now self-correct errors in personal details, such as name, date of birth, gender, nationality, marital status, spouse name, and employment dates directly through the EPFO portal. This new process eliminates the need for verification by the employer or approval from the EPFO.

Talking to the media on Saturday, Union Labour Minister Mansukh Mandaviya, pointed out that the present slew of reforms are all part of a broader reform system under Prime Minister Narendra Modi, aimed at making bureaucratic processes simpler for the common man.

Self-Correction of Personal Details in EPFO

Historically, members had to rely on employers to correct discrepancies in personal information on the EPFO portal, leading to delays and added administrative workload for both parties. With this new reform, members can make corrections independently, without the need for supporting documents in most cases.

This change is expected to address the high volume of grievances received by the EPFO related to member profiles and Know Your Customer (KYC) issues, which currently account for approximately 27% of the total complaints. The process of correcting errors, such as mistakes in father’s name, spouse details, or nationality, which previously involved online requests and supporting documents, will now be significantly simplified.

Dr. Mandaviya emphasised that this reform is part of the broader EPFO 2.0 system update, which is designed to bring the organisation’s operations up to par with modern banking systems. He also noted that for members who had a Universal Account Number (UAN) issued before September 1, 2017, corrections to personal details can still be made by the employer without EPFO approval, further streamlining the process.

Addressing Delays in PF Transfers

The EPFO’s new reform also aims to address long-standing issues related to delays in the transfer of Provident Fund (PF) accounts when employees change jobs. Currently, the process requires verification from the employer, which often causes significant delays.

Union Minister Mandaviya highlighted that, on average, employers take 12 to 13 days to submit transfer claims to the EPFO, leading to prolonged delays in processing. Over the past nine months, approximately 20 lakh claims were pending with employers for over 15 days.

Under the new system, employees with fully compliant e-KYC EPF accounts can now file transfer claims directly with the EPFO, using Aadhaar-based OTPs, without the need for employer intervention.

This change is expected to significantly reduce the turnaround time for processing transfer claims, as it removes one of the key bottlenecks in the system—the employer’s verification. The minister also mentioned that 17% of grievances received by the EPFO were related to transfer issues, making this a critical improvement for both employers and employees.

The Road to EPFO 3.0

The EPFO’s move towards self-correction and direct online transfers is part of the organization’s ongoing modernization efforts, branded as EPFO 2.0, with plans for a future upgrade to EPFO 3.0. This upcoming phase aims to bring more automation and digital integration to the EPFO’s processes, further enhancing efficiency and reducing dependency on manual interventions. The Minister also announced that EPFO is working on reforms for the PF pension system, with a focus on addressing delays in issuing pension payment orders.

Who Will Benefit from the Reform?

This reform will benefit employees whose UANs are linked with Aadhaar, particularly in cases where member IDs are linked to the same or different UANs and the personal details across IDs are consistent. Employees who change jobs or transfer their PF accounts will no longer be required to rely on employer approval, provided their KYC details are complete and Aadhaar is linked.

What is UAN and How to Link It to Aadhaar?

The Universal Account Number (UAN) is a 12-digit number assigned to each employee contributing to the Employees’ Provident Fund. Linking the UAN with Aadhaar is crucial for seamless processing of claims, transfers, and other EPFO-related activities.

To link your UAN with Aadhaar, follow these steps:

• Log in to your EPF account on the e-sewa website using your UAN details.

• Navigate to the 'Manage' menu and select the ‘KYC’ option.

• Choose the Aadhaar option and enter your Aadhaar details.

• Save the information, which will be verified through the UIDAI database.

• Once verified, your Aadhaar card will be successfully linked to your EPF account.