PF Accounts: Why is it important to merge PF accounts, know what will be the big loss if you don't do it...


If you have two or more PF accounts then you should merge them all. The process of merging PF accounts is easy and can be completed online from the comfort of your home. After merging PF accounts into one, the interest amount received will be more. At the same time, if you do not merge them, you will have to suffer loss also. Whenever an employee of a private company changes his job, a new EPF account is opened by his employer. However, while opening it, only the old UAN number is used.


If you join a job in a new company and give your old UAN number, your old account cannot be linked to the new account. This means that the funds deposited in the old account will not be able to be deposited in the new account. In such a situation, it is necessary to merge the PF account to add the old funds to the new account.

Disadvantages of not merging PF accounts
If you merge your PF accounts then UAN will merge all your work experience. Meaning, that if you have worked in three companies for 2-2 years and if you have merged your PF accounts, then your experience will be six years.

If you have not merged PF then the duration of each company will be counted differently. So if you withdraw money from your PF account without merging, then each company will have a different account for two years and you will have to pay 10-10 percent TDS on all three.

Some time ago EPFO had decided to stop interest on those accounts which were inactive for more than 3 years. However, he later withdrew this decision. To avoid such inconvenience in future, you should also merge PF accounts.


UAN number required
To merge two existing accounts of EPFO, you will first have to go to its website. Here you go to Services and click on One Employee- One EPF Account. After this, the form to merge the EPF account will open. Here the PF account holder will have to enter the mobile number. After this UAN and current member ID will have to be entered.

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