UAN Benefits for managing your EPF Account

As an Indian employee, you must be familiar with the EPF account that is maintained by the Employees’ Provident Fund Organisation (EPFO). EPF account is a fund where both the employer and employee deposits a certain percentage of the employee’s salary. The fund is then used to provide a significant financial cushion for the employees at the time of retirement or leaving the job.

EPF accounts have always been managed through UAN (Universal Account Number), which is a unique 12-digit number. In recent times, UAN benefits have been enhanced, and now it serves as a one-stop solution for managing your EPF account.

Here’s a comprehensive guide on the benefits of UAN and how you can use it to manage your EPF account.

What is the UAN?

UAN is a 12-digit unique number assigned to every employee contributing to the EPF account. The purpose of UAN is to facilitate the smooth transfer of funds for an employee who switches jobs and also to provide an easy way to access and manage the EPF account online.

If you are a salaried employee, you can get your UAN number from your employer. After obtaining your UAN, you can create your login credentials by visiting the UAN portal.

Benefits of UAN for Managing EPF Account

1. Activate your UAN

An employee can activate their UAN on the UAN portal. After creating a login, employees just need to enter their UAN, mobile number, and member ID to complete the activation process.

Once the UAN is activated, the employee can access all the services provided by the EPFO, including updating personal information, downloading the EPF passbook, and accessing various EPFO services.

2. Download the UAN Passbook

Perhaps the most significant benefit of UAN is that it provides employees with access to their EPF passbook. The passbook contains all the employee’s transaction details from the EPF account.

To download the passbook, employees need to log in with their UAN on the EPFO website and click on the ‘Download’ option.

The UAN passbook will display the employee’s EPF account details, including the amount of contribution made by the employer and the employee. Additionally, the passbook also reflects interest earned on the account, which is calculated based on the balance in the account and generates interest at a fixed rate. In the current scenario, the EPF interest rate for the financial year 2020-2021 is 8.5%.

Apart from viewing transaction details and interest earned, the UAN passbook shows the name, contact details, and employment history of the employee.

3. Accessing Pension Account Information

With a UAN number, employees can obtain critical information about their pension account, such as its balance and status. Previously, employees had difficulty accessing such information, but with UAN, accessing pension account details is easy.

4. Linking Multiple Member IDs

With UAN, an employee can link multiple member IDs to the same UAN. In other words, if an employee has multiple EPF accounts due to changing jobs multiple times, they can link all their EPF accounts to one UAN. This facilitates smooth transfer of funds from one EPF account to another.

5. Updating KYC Details

UAN also allows employees to update their KYC details, including their bank account, email, and phone number, online. This way, employees can ensure their information is accurate and updated.

6. Online Transfer of Funds

With the UAN, employers can apply for funds to be transferred online via the EPF website. Employers can verify the details of the employees, initiate the transfer request, and submit the relevant documents online.

7. EPFO Mobile App

The EPFO mobile app, launched in 2015, provides employees with a variety of services, including viewing the EPF balance, updated passbook, and checking claim status. Additionally, through this app, users can update personal information or generate and link their UAN.

In conclusion, UAN provides a holistic approach for employees to manage their EPF accounts. Through UAN, employees can access their passbooks, check the status of their account updates, withdraw funds, and track activities related to their pension account and savings account.

Disclaimer:

Investing in India’s financial market comes with the inherent risks that an investor must fully comprehend. Investors must evaluate their risk tolerance and investment goals before investing in financial markets. This article does not recommend or provide investment advice and is solely educational in nature.

Summary:

UAN offers several benefits for employees looking to manage their EPF accounts online. UAN makes it easy for employees to download their passbook, view their pension account information, and link multiple member IDs to a single UAN. Additionally, employees can update their KYC details, transfer funds online, and access services through the EPFO mobile app. Investing in Indian financial markets requires a thorough understanding of risks involved, and any investment decisions must be made after carefully evaluating personal risk tolerance and investment goals.