Modern-day demands a lot of things, and most of these demands only take us forward. Like, saving for retirement without the slightest effort through employee provident funds. When most of us work in companies that have more than 20 employees and earn more than Rs. 15 thousand – therefore, there is a contribution to the employee provident fund. Moreover, when you are contributing to this fund, you must be aware of the Universal Account Number. But, for the ones who are still wondering – here is what it is.
What is the Universal Account Number or UAN?
The Universal Account Identifier (UAN) is a dynamic 12-digit number provided to each Employee Provident Fund (EPF) member for the efficient management of his or her EPF account. An employee’s UAN links all of his or her PF (Provident Fund) accounts across organizations and functions independent of employers.
It was issued by the Ministry of Labour and Employment in accordance with the directions of the Government of India, and it unites all the PF accounts that an employee has been assigned each time he or she joins a new organization. When the appropriate documents have been validated, a company can authenticate its employee using the UAN.
Multiple PF accounts can result in issues due to erroneous PF withdrawals and transfers. As a result, the UAN provision was implemented to address such concerns, streamlining the management of provident fund accounts. Connecting all of an employee’s PF accounts via UAN provides smooth and hassle-free transfers and withdrawals.
Major Characteristics of the UAN
- The Universal Account Number is a one-of-a-kind number assigned to each employee that is fully independent of their employer/s and can be connected to their Aadhar card.
- If their KYC documents are confirmed, the UAN can greatly assist employees in helping prospective employers to authenticate a prospective employee.
- Because the employee has online access to their PF account via their UAN, they may monitor and guarantee that their monthly PF deductions are paid in by registering on the EPF member portal.
- Every employee who already has a UAN must download and present their UAN details to their employer before their first salary is paid.
- The EPFO web portal can also be used to check on the status of UAN allocation.
- The account holder can download their UAN card and passbook, as well as a list of their past EPFO accounts, via the EPFO portal.
- The account holder can update their KYC and personal information at any time and perform eligibility checks online.
- The account holder may request a PF transfer, a partial withdrawal of PF money, or a complete withdrawal of PF funds.
- The EPF passbook can also be accessed by texting “EPFOHO UAN ENG” to +917738299899 from the account holder’s registered mobile number.
- The EPFO assigns a UAN to each PF account holder.
The Perks of your Universal Account Number
Some of the benefits of using a UAN number are outlined below. Continue reading!
- a) Easy transactions: Previously, manual transfers from old PF accounts to new ones were time-consuming and error-prone. Even the introduction of a digital method did not appreciably ease this process.
Employers can successfully transfer payments following UAN implementation by submitting UAN and KYC details to the new employer. After the employer validates all data, PF transfers from the old to the new account can be made without difficulty.
- b) Your streamlined transactions: One of the advantages of using a UAN number is that it allows for more secure transactions. As with any other PF account activity, withdrawals and monthly employer contributions can be received through SMS. Individuals can also use UAN to monitor their account balances. They must first obtain the PF passbook from the EPF website.
- c) Minimal efforts: Prior to the introduction of UAN, PF withdrawal was employer-dependent, as the application was routed to the former employer for signing before being sent to EPFO. This dependence, however, has been lessened in the case of UAN. Once the KYC verification is completed, the PF amount from the old account to the new account is automatically transferred.
- d) The Benefit of Pension: Employees had to withdraw from the Employee Pension Scheme prior to the implementation of UAN, which affected the amount at retirement. However, with UAN, the balances of both the Employee Pension Scheme and the Employers Provident Fund are immediately transferred to the new account, boosting the amount at retirement.
Still don’t know what your UAN is? Here is how you can find out:
Step 1: Go to the EPFO’s Unified Member Portal in step one.
Step 2: From the vital links area, select the ‘Know Your UAN Status’ option. A new page will display, prompting individuals to enter vital information such as their name, date of birth, cell phone number, and email address, as well as their current member ID or EPF account number.
Step 3: After submitting information, individuals will receive an authorization PIN on their registered mobile number.
Step 4: Individuals must now enter their PIN.
Step 5: After inputting this information, the UAN will be issued to the registered email address and mobile number.
What is the UAN EPFO, and How to Activate it?
Individuals must follow the actions outlined below to activate UAN EPFO.
Step 1: First, go to the EPF Member Portal.
Step 2: Select Activate UAN.
Step 3: Individuals must choose one of three options: UAN, Aadhaar, or PAN, member ID.
Step 4: Fill in the blanks with your name, date of birth, email address, and phone number.
Step 5: Select ‘Obtain Authorization PIN.’
Step 6: Enter your PIN and choose ‘Validate OTP and Activate UAN.’
Step 7: The UAN will be activated and delivered to the registered mobile phone number. As a result, activating EPFO UAN is simple.
Individuals who understand what a UAN number is, its benefits, relevance, generating, and activation process, may now swiftly and comfortably access all of their PF accounts.
It’s a wrap. So – now that you know all about the benefits and features of the universal account number – it is only right that you utilize its significance.