EPFO New Update: In this situation, it is imperative that you complete the tasks pertaining to your EPFO account; failure to do so might result in significant losses

 EPFO New Update: In this situation, it is imperative that you complete the tasks pertaining to your EPFO account; failure to do so might result in significant losses

EPFO New Update: In this situation, it is imperative that you complete the tasks pertaining to your EPFO account; failure to do so might result in significant losses

EPFO New Information: You are aware that when you switch employers, your EPF accounts are also formed independently, which you must combine by going to the EPFO website. You could have to bear significant losses if you decide not to consolidate the accounts. Learn more about it here:

Individuals employed in the private sector often switch employment. When an employee changes employment, his employer opens a new EPF account for him. But the old UAN number is the only one needed to access it. Many workers in such circumstances believe that if the UAN is the previous one, their EPF account will continue to operate using that UAN number. In contrast, this doesn't occur.

The drawbacks of not combining accounts are as follows:

The first drawback of not combining the accounts is that your money in the previous account is hidden when a new EPF account is opened. In addition, combining them makes sense from a tax savings perspective. Actually, this five-year restriction is followed when you take money out of an EPF account. After making contributions for five years, there is no tax due when the deposited money is withdrawn.

Your firms' durations will be measured differently if you choose not to consolidate the accounts. When you take out PF funds in this scenario, you will be required to pay TDS based on how long each firm has been in business. However, your experience also adds up once the accounts are merged. Explain with an example: Let's say you spent two to three years working for three different firms. You currently have three EPF accounts. Your total experience will be six years if this account is combined. However, this 2-2 year experience will be recognized separately if a merger is not completed.

How to combine accounts:

Visit the Member Service Portal of EPFO first at https://unifiedportal-mem.epfindia.gov.in.

Under Online Services, choose "One Member - One EPF Account (Transfer Request)".

Check your personal information and your current employer's account.

The list of your previous employment will then appear if you click on Get Details.

Select the account you want to move here.

Select "Get OTP." Your registered cellphone number will get an OTP; input it and click "Submit."

We'll submit your request. It requires approval from your existing workplace. EPFO will then combine your previous account with the new one. You may check the status of your merger after some time.