To manage their EPF account efficiently, each Employee Provident Fund (EPF) member is issued a 12-digit identifier known as a Universal Account Number (UAN). Unrelated to employers, a worker’s UAN links all their PF (Provident Fund) accounts from various enterprises and job responsibilities.
It consolidates all PF accounts granted to employees once they join a new company. The Ministry of Labour and Employment issued it in accordance with instructions from the Government of India. This allows an employer to authenticate an employee using the UAN after examining the required paperwork.
Complications brought on by erroneous PF withdrawals and transfers are frequently caused by having several PF accounts. To overcome these problems and streamline the management of provident fund accounts, the UAN provision was established. An employee’s PF accounts must be linked through the UAN to allow hassle-free withdrawals and transfers.
What Is a UAN Number?
UAN is a 12-digit unique number supplied to each employee contributing to the Employees Provident Fund. This unique number is established and issued by the Employee Provident Fund Organisation (EPFO) (EPFO). In accordance with the instructions of the Government of India, the Ministry of Labour and Employment authenticates UAN.
This number remains the same for each individual throughout their career, regardless of how frequently they switch jobs. To utilize this UAN more effectively, people need to understand numerous connected items and UAN number.
What is the Purpose Behind Introducing UAN Number?
You will get a Unique Identification Number if you make an EPF contribution from your monthly paycheck. Previously, however, each employee received a distinct yet fresh number for every Provident Fund account set up by several companies.
- But after the implementation of UAN numbers on 1 October 2014, it has become simpler for employees to access their EPF accounts.
- This is due to the UAN number’s ability to let you manage your PF accounts through a single interface, regardless of how frequently you change employers during your employment.
- You could migrate your PF account to the UAN even if you started working before 2014.
- As a result, you have quick and secure access to your PF accounts, and you no longer need to remember several passwords and account information as you did before the debut of UAN.
Importance of Universal Account Number
The EPF UAN is an excellent tool for employees to monitor PF-related actions. Employers also gain from UAN because it aids with PF updates and other essential duties. The UAN’s necessity is highlighted below:
- The UAN aids the EPFO in keeping track of organisational changes that affect the workforce.
- If an employee moves jobs, they only need to link their new PF account to their UAN; the EPFO will then update this information in their records.
- Online access is also available to UAN facilities. Numerous PF withdrawal and transfer services are available on the UAN e-Sewa platform. When we switch employment, this makes withdrawals and transfers just a few clicks away.
- UAN also ensures that all employee PF accounts are legitimate and up to date.
- If KYC papers are validated, the employer or organisation can verify personnel using their UAN.
- Because the UAN is online and accessible for any activity, neither the employer nor the organisation will be permitted to withhold or deduct employee PF.
- By logging in to the EPF Member Portal with their 12-digit UAN, employees may check the monthly PF deposit made by their employer.
Advantages of UAN
- Hassle-free Transfer of Funds
Previously, transferring money manually from old PF accounts to new ones took a lot of effort and was prone to mistakes. Even the use of a computerised method did not considerably simplify this process.
However, with the deployment of UAN, employers can transfer funds effectively by providing the new employer with their UAN and KYC information. PF transactions from the old account to the new one can be carried out without issue when the employer has verified all the data.
- Minimal Employer Involvement in PF Withdrawal
Before the introduction of UAN, PF withdrawal was dependent on employers since the application had to be signed by the prior employer before being forwarded to EPFO.
However, this dependence has decreased in the case of UAN. Once the KYC verification is complete, the PF amount is automatically transferred from the old account to the new one.
- Streamlined Transactions with Mobile Notification
The UAN number offers quicker transactions and more security, one of its advantages. SMS notifications are available for withdrawals and the monthly employer contribution, as they are for all other PF account activities. Additionally, users may use UAN to check their account balances. So, they should download the PF passbook from the EPF website.
- Benefit from the Employee Pension Scheme
Employees had to withdraw from the Employee Pension Scheme before implementing UAN, which impacted the retirement payout.
But with UAN, the balances of both the Employers Provident Fund and the Employee Pension Scheme accounts are immediately moved to the new account, boosting the amount at retirement.
The Universal Account Number will remain the same as long as you are an employee, regardless of how frequently you switch jobs and companies. You may easily manage your PF Account with UAN without any intervention from our company, and the required monthly payments will help your corpus grow consistently.