To address overlapping service period issue in PF transfer, EPFO simplifies rules for account transfer from old to new employer

The Employees’ Provident Fund Organisation (EPFO) has rolled out measures to streamline the processing of Transfer Claim requests, particularly addressing an issue of overlapping service periods, which have often led to automatic claim rejections.

The latest directives, issued via circulars dated April 25, 2025, and January 29, 2024, represent a significant step in simplifying the transfer claim process and enhancing service delivery. These changes aim to reduce unnecessary delays and improve the overall experience for EPF members.

What are transfer claims?

Transfer claims allow EPF members to transfer their provident fund balance from one employer to another when switching jobs. In many cases, overlapping service periods—where two employers appear to have recorded the same working period—have caused claims to be rejected outright.

Challenges with overlapping service periods

Transfer claim requests allow EPF members to transfer their provident fund balance from one employer’s account to another when changing jobs.

Recognizing that such overlaps are not inherently fraudulent, the EPFO has issued instructions to prevent automatic rejections and ensure smoother processing of transfer claims.

The EPFO’s directives, outlined in the circulars dated April 25, 2025, and January 29, 2024, mark a significant step toward simplifying the Transfer Claim process by addressing overlapping service periods. By instructing Regional Offices to process claims without automatic rejections and ensuring rigorous verification, the EPFO enhances efficiency and accessibility for members.

Based on these directives, the EPFO has clarified that:
Transfer claim requests should not be rejected solely due to overlapping service periods, as these can arise from genuine circumstances. Transferor (Source) offices are required to process transfer claims even if overlaps exist, without returning or rejecting them outright. Only in cases where overlaps raise significant concerns should Regional Offices seek clarification from the member or employer before proceeding with the claim.

Transferor offices must adhere to strict verification protocols, as outlined in the April 25, 2025, circular, to ensure seamless and accurate transfers stated, “The initiator, verifier as well as the Approver at the Transfer-out (Source) Office need to thoroughly verify, inter-alia, the said details before finally approving the claim. Therefore, there shall not be any need for the role of AO Transfer-in Rejection.”

The circular further stated, “it is once again re-iterated that all the Transferor (Source) Offices need to take due care to ensure that the transfer-out is error-free in respects before according the final approval to avoid any erroneous transfers and consequent grievances/delay.”