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Wednesday, 29 October 2014

Employees’ Provident Fund (EPF) Portability: Universal Account Number and its Features

I have posted about EPF in my previous article which you can follow through the link provided below. Here I will discuss about the newly introduced EPF portability (UAN and its Features). Universal Account Number (UAN) will cover all the subscribers contributing to Employees’ Provident Fund Scheme. This system will benefit approximately around 41.7 million subscribers to EPF. This drive is initiated as part of the Social Security and Labour Reforms which would benefit the Individuals and protect their long run interest. However initially, UAN has been allotted to Subscribers who have contributed to PF between 1st January,2014 to 30th June,2014 and beyond.

UAN will ensure that Subscriber is easily able to transfer his PF account to the new organization when he switches jobs. It is an attempt to remove hassles and time consumed for transfer of account from one organization to another. It will help the subscribers to access their corpus better and would safeguard their savings in case of job change or temporary loss of job as they would be entitle to use the same UAN in the new organization. EPF is the Statutory Benefit for the employees to safeguard their interest after retirement or any future shortcomings. 

Please note as per the latest notification, EPFO has relaxed norms for withdrawal of PF for Subscribers who left membership before 1st January,2014. It is no longer mandatory for such subscribers to provide UAN for withdrawal. Moreover, the Officer in Charge may accept claim forms without UAN at his/her discretion under exceptional circumstances based on the merit. 

Read more about Employees' Provident Fund (EPF) and Amendments to it and its impact in the link provided below:-


Let’s look at the benefits of the UAN and how does it help the EPF subscribers:-

UAN can be used any a Subscriber anywhere in India during his/her employment and one can easily switch the PF account to the new organization when he/she goes for a job switch.

UAN will be linked to EPF and new members won’t be issued PF account number, instead they would get a subscriber identification number. This Identification number will be linked to UAN. It will smoothen the process of Fund Transfer and reduce the compliance hassle and cost for the employer as well.

UAN will become activated only when it is seeded with Know Your Customers (KYC) details like Passport, PAN, Bank account Number etc verified by the Employer.

Provident Fund accounts will be updated monthly and Subscribers will be informed of the same through SMS.

Subscribers can check if they have been allotted UANs on the EPFO website.

Subscribers will have to activate their UAN to get the PF update, Transfer claims, PF passbook download.

5 comments:

  1. Can i withdraw a money EPF any time i want.....?

    ReplyDelete
    Replies
    1. No there are certain guidelines for doing so...Go through the link given below on Withdrawal and Advances from EPF.

      http://amritfinaa.blogspot.in/2014/11/withdrawals-and-advances-under-epf.html

      In case, an employee leaves a job...He/She has to wait for two months before he can claim his EPF amount, barring few exceptional cases immediate withdrawal is not allowed.. i.e...Employment Abroad or incase of Female employee leaving job due to marriage.

      Hope this will help You.
      Feel free to contact in future.

      Regards,
      Amritesh

      Delete
  2. How to check EFF Balance and how to withdraw PF Balance?

    ReplyDelete
  3. I think EPF is a good idea! And I want to suggest one more interesting post "How to get a raise in 9 days". It helped me in my career prospect.

    ReplyDelete