2. Employee Provident Fund

Your employee’s provident fund (EPF) has to be considered carefully while you switch jobs. A question may arise in your mind whether how are going to deal with it? There are two ways of dealing with the employee’s provident fund, either you can transfer your existing account to your new employer or close your old account and open a new one.

It may take around 3 to 6 months of time period for the withdrawal of your EPF from your old account and depositing it in a newly opened account. In addition you will also be left with a smaller retirement fund because you would lose over the benefit of your EPF amount compounding during the time period which is spent over opening a new account.

In case you withdraw your EPF before the completion of five years then you will become liable to pay taxes on the accumulated fund. If just by transfer of your account can help you save over taxes and provide longer time for your EPF to grow, then it’s better to take this advantage.