Have EPF account? Here’s why you must also get UAN ID - Find out what EPFO says
For an EPF account, UAN operates like a permanent number and remains valid throughout the life of a member, irrespective of change in employment.
For any kind of services related to your employees provident fund (EPF) account, an employee must have an Universal Account Number (UAN). By having this ID, you can review your passbook, claims online, check PF balances and much more. UAN is an unique 12 digit number allotted to a member, by the Employees Provident Fund Organisation (EPFO). The UAN operates like a permanent number and remains valid throughout the life of a member, irrespective of change in employment. That said, a UAN id helps in automatic transfer of funds and PF withdrawal.
The EPFO via its twitter account has listed out few benefits of UAN, in order to help understand its importance.
Firstly, one of the most common features of UAN is that it’s lifelong account number. This eliminates the need for having different id proofs, while changing your organisation or employer. This eliminates the need of remembering too many account details.
Secondly, the UAN facilitates linking of multiple EPF accounts of member. So for instance, if you decide to change your employment, you can still transfer your current EPF account and link it with a new job and still continue to contribute to your PF balance. This also increases the savings balance in your EPF, and further increases your pension benefits on retirement.
Further, the UAN is digitallly authenticated KYC, which would facilitate clubbing of all previous PF account numbers. Considering it is digital, you do not have to visit any branch like in the case of banks, for clubbing your every account.
Also, in the case of Aadhaar enabled UAN, a member can submit their claims directly with the EPFO. Apart from this, if your UAN number is being linked with Aadhaar, PAN and bank account details, you do not even need employer’s signature, you can just directly claim your PF balances.
From the above it can be said that, UAN id is especially useful for EPF members who change their jobs and or locations frequently.
Your employer can generate the UAN. However, in case of change in employment the previously allotted UAN may be provided to the employer.
As per the guidelines, an employer contributes 12% of the basic salary of a staff member towards EPF, while similar rate is contributed by an employee as well. However, if you are a woman employee, then the contribution rate stands at 8% in EPF.