look news india
New Delhi: When we start a new job, our entire focus is on salary and position, but one very important financial aspect is left behind— EPF (Employees Provident Fund). EPFO has recently warned that even a small mistake in ‘Joining Date’ (DOJ) and ‘Exit Date’ (DOE) in PF records can affect your old age pension. If you have recently changed the company or are about to change it, then this news is very important for you.
What will be the harm due to wrong exit date?
According to experts, if your old company has entered the exit date wrongly in the PF records or has not updated it, it can have serious consequences:
Tax hit: If your total service in the records shows less than 5 years, then on PF withdrawal TDS (Tax Deducted at Source) Can be cut.
Claim Rejection: If there is a difference between joining and exit date, the application for PF transfer or withdrawal may be rejected.
Service Gap: This affects your service history, which also creates problems in PF interest calculation.
There is a direct hit on pension: 10 years of mathematics
To get monthly pension under Employees Pension Scheme (EPS) 10 years continuous service Is mandatory. If your on-paper service falls below 10 years due to a date mistake, you will no longer be entitled to pension for life. The case will be settled by giving you only lump sum money.
Pension is calculated by this formula:
$$Monthly Pension = \frac{(Pensionable Salary \times Pensionable Service)}{70}$$
Here both salary and service period are important. Shortage of even one month in service period can significantly reduce your pension amount.
Why do data errors occur?
Following are some common reasons for mistakes in EPF records:
Negligence of the old company: Not updating the exit date on the portal by the previous company.
Problem in UAN link: No previous UAN (Universal Account Number) link in the new company.
Leaving a job without informing: Companies often enter the wrong date when leaving a job without formal resignation.
No merger: Not merging the old PF account with the new account.
How to identify and fix the mistake?
Keep checking your PF portal from time to time to save your hard-earned money.
Check Service History: Login to the unified portal of EPFO and go to the ‘View’ tab to view ‘Service History’.
Joint Declaration: If a mistake is found, the employee and the company can fill a joint declaration form. EPFO updates the records based on the information given in it.
Online Correction: In some cases, the employee can also update the exit date on the portal himself, provided the previous company has stopped contributing.
Expert Tip: Be careful while changing jobs
While leaving the job, confirm with the company’s HR that they have updated your exit date on the portal. As soon as you join a new company, give your old UAN so that your service history remains continuous and pension benefits are safe in future.
