EPFO claim rejections: What is service overlap and how to merge PF accounts

Out of every 100 claims filed with the Employees’ Provident Fund Organisation (EPFO), 28 were rejected in FY23. Out of many reasons for rejection, ‘service overlap’ is one.

But fortunately, EPFO has come out with a circular that ‘service overlap’ can’t be the sole reason to reject any transfer claims.

Here’s a quick explanation of a service overlap and transfer claim (to merge PF accounts) and how this new circular helps.

What is a Service Overlap in EPFO?

A service overlap occurs when EPFO records show that you were employed by two organisations at the same time. That sounds unusual, but it’s more common than you’d think — and often just a clerical error.

• Job switch without a proper exit date
  When you leave your job to join another employer, and your old employer doesn’t update your exit date, it might show as an overlap.
• Errors in updating dates
  Even a small mistake in your joining or exit dates — whether by your employer or while self-declaring — can cause a conflict.
• Dual employment
  In some cases, if you held two jobs briefly and both employers contributed to your PF, the system flags it as an overlap.

Why Was This a Problem?

Each EPF member is assigned a Universal Account Number (UAN) — a unique 12-digit number that stays the same across jobs.

Whenever you switch jobs, your new employer opens a new PF account under your UAN. To consolidate your savings, you must raise a transfer claim to merge your old PF account with the new one.

But if there’s an overlap in service at any point in your employment history, EPFO would reject your transfer request. The problem with not having PF accounts merged is that:

• Restricted access to the full PF balance
  You could only withdraw from your latest PF account, not your total accumulated balance. For example, 50% withdrawal for a child’s education will be based only on the latest account balance, not your total PF savings.

• Interrupted service history
  This affects tax benefits and pension eligibility — for example, 5 years of continuous service avoids TDS; 10 years qualifies you for a pension. But if the account is not merged, then past service records may not be considered.

Overlap Issue Now Resolved by EPFO

You would have noticed that even minor mismatches or overlaps could block your PF transfer. EPFO is working to streamline them. In 2025, EPFO updated its regulations that:

• Overlap alone can no longer be a reason for rejection.
• If your UAN is KYC-compliant, your old PF balance is auto-transferred once your new employer deposits the first month’s contribution — no need to raise a transfer request.

This is a huge relief for employees who have to manually raise a transfer claim and face unnecessary delays or rejections due to small date mismatches.

Still Need to Merge Your PF Accounts? Here’s How

Now that the overlap issue is sorted, merge your PF accounts by raising a transfer claim (if not already done).

1. Log in to the EPF member portal
2. Go to Online Services > One Member – One EPF Account (Transfer Request)
3. Ensure your UAN is KYC-compliant and your bank details are updated
4. Select your previous employer’s account to transfer
5. Choose either your current or previous employer for verification
6. Verify via OTP and submit

Check your passbook to see if the amount was transferred. The amount will be reflected as a credit in the latest passbook. Otherwise, older accounts will still show a balance.