Welcome to our detailed guide on EPF Exempted Companies under the Employees’ Provident Fund (EPF) scheme! We’ll explain how these companies handle Provident Fund (PF) management, their unique benefits, and the steps you can take to transfer your PF if you change jobs.
What Is an EPF Exempted Companies?
In India, the EPF is typically managed by the Employee Provident Fund Organization (EPFO), which collects contributions from employees and employers and handles withdrawals and settlements. However, some companies, known as ‘exempted companies’, have their own PF trusts, allowing them to manage PF contributions and provide direct employee benefits.
Exempted companies must meet specific standards set by EPFO, ensuring they offer employees at least the same benefits and interest rates as EPFO. Large organizations like Infosys, Tata Consultancy Services (TCS), and Bharat Electronics commonly have exempted trusts.
How Do Exempted PF Trusts Work?
Private PF Trusts: Exempted companies establish private PF trusts to manage employee and employer contributions, meaning the PF funds are held and managed within the company rather than sent to EPFO.
Compliance with EPFO Standards: Despite internal management, these trusts must follow EPFO regulations, including the minimum interest rate and certain withdrawal conditions.
Direct Benefits to Employees: Employees of exempted companies typically experience quicker transactions, easier access to their PF information, and sometimes additional benefits or higher interest rates than EPFO.
Benefits of Working for an Exempted PF Trust
1. Since PF funds are managed internally, exempted companies often process contributions, withdrawals, and transfers faster than EPFO.
2. The company has greater flexibility in PF management and may offer benefits tailored to employee needs.
3. Employees can access their PF details, balance, and withdrawal status directly through the company’s portal.
How to Check If Your Company Has an Exempted PF Trust
To find out if your company manages a private PF trust:
1. Visit the EPFO Website: The EPFO maintains a list of companies with exempted PF trusts.
2. Search for Your Company: Look up the “List of Exempted Establishments” to confirm if your company has a private PF trust. Large organizations like Wipro and American Express are listed here.
Important Points for Employees in Exempted PF Trusts Companies
1. Interest Rates: Exempted companies must offer at least the EPFO’s standard interest rate on PF balances. It’s good to verify with HR if there are any additional benefits.
2. Account Access: Typically, employees can access their PF details through the company’s PF portal rather than the EPFO member portal.
3. Transfer Options: If you switch jobs, you can transfer your PF balance from the company’s private trust to your new employer’s EPF account (whether exempted or non-exempted) through EPFO’s online portal.
4. Zero Balance Check: During trust-based transfers, the claim amount might initially show as zero—this is normal, and the actual balance will appear when the transfer is completed.
5. Follow Up Regularly: Keep in touch with your previous employer’s HR or PF department for updates.
How to Transfer PF Balance from a Trust-Based PF Account Online: A Step-by-Step Guide
Are you switching jobs? Here’s how you can transfer your PF balance from a trust-based PF account to your new employer’s PF account through an online process.
Step 1: Understand the Difference with Trust-Based PF Accounts
Trust-Based Accounts: In companies with a trust-based PF, your PF is managed by a private trust. This means you won’t see your PF balance on the EPFO portal, as it’s kept within the company’s private records.
Importance of Transfer: Transferring your old PF balance is essential to keep all your savings in one place, prevent fragmented accounts, and avoid managing multiple PF accounts.
Step 2: Log in to the EPFO Member Portal
Visit the EPFO Member Portal and log in with your Universal Account Number (UAN) and password.
After logging in, navigate to View > Service History to review your previous employers.
Step 3: Start the Transfer Request
Go to the Online Services section.
Select One Member – One EPF Account (Transfer Request).
Review the pre-filled details for your previous and current employers.
Step 4: Choose an Employer for Verification
For trust-based companies, select the Previous Employer for approval.
Click Get OTP and submit the OTP sent to your Aadhaar-linked mobile number to confirm your request.
Step 5: Follow Up with Your Employer
Once submitted, your previous employer (trust) will need to approve the request. Be proactive and contact them to expedite the process. Once the trust is approved, the EPFO will process the transfer.
Step 6: Track Your Transfer Status
Check the status of your transfer request under Online Services > Track Claim Status. Transfer requests for trust-based PFs can take 2–3 months due to additional verification steps.
Read this also to transfer old UAN to new UAN
Common Issues with Trust-Based PF Transfers
Error Messages: If you receive an error while selecting the employer, try choosing the previous employer option again.
Delayed Balance Update: Your transfer may appear as “settled,” but the updated balance can take months to reflect. Monitor your passbook regularly.
FAQs on EPF Exempted Companies
1. Can I withdraw from a trust-based PF account if I change jobs?
Yes, you can withdraw funds or transfer them to a new employer’s PF account. If withdrawing, reach out to the company’s HR to initiate the process, as they’ll handle it through the company’s PF trust.
2. How long does it take to transfer PF from a trust-based company to a new employer?
The transfer can take from a few weeks up to 2–3 months, as it involves approval from both the company’s trust and the EPFO.
3. Can I access my PF balance online if I’m part of a trust-based company?
You can access PF details via the company’s internal PF portal. However, balances in trust-based accounts are usually not visible on the EPFO portal.
Being part of an exempted or trust-based PF company comes with unique benefits, including faster transactions and tailored employee support. If you’re changing jobs, follow the steps above to ensure a smooth PF transfer. Regular monitoring, timely follow-up, and understanding the process will help you manage your PF funds effectively.
