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First Job Finances — Intermediate
Always transfer your EPF to the new employer using UAN — never withdraw it before retirement.
Concept
Always transfer your EPF to the new employer using UAN — never withdraw it before retirement.
EPF (Employee Provident Fund) is 12% of your basic salary contributed by you + 12% by your employer. It compounds at 8.1% (tax-free if withdrawn after 5 years of continuous service). When you switch jobs, your UAN (Universal Account Number) stays the same — just submit a transfer request online. Withdrawing before 5 years triggers 10% TDS, and you lose decades of tax-free compounding.
हिंदी मेंEPF = basic salary का 12% आपसे + 12% employer से। 8.1% compounding (5 years continuous service बाद tax-free)। Job switch पर UAN same रहता है — online transfer request दें। 5 years से पहले withdraw करें तो 10% TDS लगता है, और decades का tax-free compounding खो देते हैं।
Example
See it in action
Ankit (25) has ₹1.5L in EPF after his first job. He withdraws it for a trip. If he'd transferred it and let it compound at 8.1% tax-free for 35 years, it would become ₹22L — from just that ₹1.5L. Add ongoing contributions, and his total EPF corpus at 60 could be ₹1.5 crore+.
हिंदी मेंAnkit (25) की पहली job से EPF में ₹1.5L है। Trip के लिए withdraw कर लिया। Transfer करके 8.1% tax-free compounding 35 years तक रखता तो सिर्फ ₹1.5L से ₹22L बनते। Ongoing contributions के साथ 60 पर EPF corpus ₹1.5 crore+ हो सकता था।
Key takeaway
Remember this
EPF is your retirement backbone. Transfer it on every job switch, never withdraw. Treat your UAN like your PAN — it follows you for life.
"I'm switching jobs, let me withdraw my EPF" — that ₹2L withdrawal at 25 would have become ₹30L+ by retirement thanks to compounding.
हिंदी मेंEPF retirement की backbone है। हर job switch पर transfer करें, withdraw कभी नहीं। UAN को PAN जैसा समझें — life भर साथ रहता है।
Learn First Job Finances by doing
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