EPF Alert: Do not make this mistake while joining a new job! One small mistake can sink your pension, know how to correct it

New Delhi: When we start a new job, our entire focus is on salary and position, but one very important financial aspect gets 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, 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 wrong exit date in the PF records or has not updated it, then it can have serious consequences: Tax hit: If your total service in the records shows less than 5 years, then TDS (Tax Deducted at Source) can be deducted on PF withdrawal. Claim Rejection: If there is a difference between the joining and exit dates, the application for PF transfer or withdrawal may be rejected. Service Gap: This affects your service history, which also creates problems in the interest calculation of PF. There is a direct hit on pension: 10 years’ mathematics. 10 years of continuous service is mandatory to get monthly pension under the Employees’ Pension Scheme (EPS). 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 matter will be settled by paying you only a lump sum. Pension is calculated by this formula: $$Monthly Pension = \frac{(Pensionable Salary \times Pensionable Service)}{70}$$Here both salary and service period are important. Shortfall of even one month in the service period can significantly reduce your pension amount. Why do data errors occur? Following are some of the common reasons for errors in EPF records: Old company negligence: Not updating the exit date on the portal by the previous company. Problem in UAN link: No previous UAN (Universal Account Number) linked in the new company. Leaving the job without informing: Companies often put the wrong date when leaving the job without giving formal resignation. Non-merger: Old Not merging the PF account with a new account. How to identify and correct 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 provided 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.