The Employee Provident Fund(EPF) brings in a number of new measures to improvise online claim process. By inventing different methods for easy online streamline like for example ‘online transfer claim’ got replaced by United Portal of the EPFO. The online transfer PF claims were available since ages but now if a person wants to transfer any claims he or she will have to proceed via the ‘unified portal’. Every employee is provided with a Unique Identity Number. This acts as an umbrella for a number of PF accounts. Earlier when an employee had to change his or her job he had to go through a time-consuming process of linking his old PF account to the new one but now with UAN, all an employee has to do is provide his UAN number to his or her new employer. As a person changes his or her job, the UAN acts as the umbrella of all the past PF accounts as well as the new one.
Things to Remember Before Using the Unified Portal:-
You need to keep your UAN number with you.
- Make sure that your UAN is seeded with KYC(bank details and Aadhaar)
- Provide the approved/verified KYC to your new employer.
- Log in to the official unified portal
- After logging in click e-sewa
- Click on ‘online services’ and then click ‘transfer request’
- Fill the transfer claim form online and then download the form in PDF format
- Take a print out of the form and then submit it to your employer after signing it(within 10 days).
- After receiving the form the employer approves the transfer digitally by accessing the employer interface in the Unified Portal.
Another initiative by the EPFO to ensure the convenience of the employer is that it has reduced the time of withdrawal to 5 days.
Transfer Post 1st of May:-
In order to ensure EPS benefit of the employees, the EPFO has directed to clear all in-process claims within the month.For this, the employer is required to take out a print out of the transfer claim and get it signed by the employee.Thus an employee who has initiated a transfer post 1 March is required to resubmit the claim.The date of joining and the date of leaving should be correct and there should not be any mismatch to ensure a smooth process.After attesting it from the employee the employer sends it to EPFO office to start the process.
After leaving an organization a person might be confused with whether to withdraw or to transfer the amount to the new employer.The following things should be kept in mind while transferring:-
- A person has the option to withdraw if he or she remains unemployed for 60 days( the withdrawal is not taxable if a person has served five years continuous service).
- If a person has worked at a particular place and has shifted his job to another organization then it is more advisable to transfer the existing PF to the new employer.
- It must also be kept in mind that monthly salary to EPF is necessary as 12% of monthly salary is moved to EPF.
The EPF is not only a saving scheme but also ensures a financial base for the employees after retirement.
To know more about EPF please visit the Unified Portal.
Employees’ Provident Fund Organization or EPFO which is a retirement fund body is mandatory to file online claims for provident fund withdrawals above Rs. 10 lakh, which is another step towards becoming a paperless organisation.
The EPF account holders are also required to file online claims for withdrawals of above Rs 5 lakh under the Employees Pension Scheme 1995 which has been mandated by the Employees’ Provident Fund Organizations (EPFO).
EPFO offers both the option of filing online as well as manual claims for provident fund withdrawal as also for pension to the EPF subscribers.
This decision of filing online claims for withdrawal of certain amount of money has been taken at a meeting chaired by Central Provident Fund Commissioner on January 17, 2018, said by an official
The official also said that
They also added that
Also note that the EPF account is required to be linked and verified in the system before the online claims can be settled. Also, the subscriber is required to have an activated universal account number.
And as per the rules, the claims exceeding the said limit would not be accepted in the physical form now onwards.
At present, the EPFO has over 6 crore subscribers and a corpus of Rs 10 lakh crore.
EPFO offers new facility for the citizens to generate UAN (Universal Account Number) easily. UAN is a 12 digit unique number which is allotted to every member of EPF (Employees’ Provident Fund), which helps the employee to keep a check of his EPF account.
To know more about it you can also read here – EPFO
The prime minister of India, Shri Narender Modi at a function organized by the Ministry of Labor and Employment initiated 5 different programs. The main aim of initiating these programs was to ensure” minimum government and maximum governance” and to bring more transparency and speed in the governance. One amongst such scheme was the Universal Account Number (UAN). It aimed at making the Provident Fund Account portable, hassle free and easily accessible to 4.17 crore employees in the country.Under the scheme, approximately 4 core employee under EPF.
Scheme was compiled and digitized and provided a Universal Account Number to all.The UAN will be linked with a person Aadhaar number and bank account. Further, the Prime minister also stated that this universal number will also consist of the KYC details of all the employees and will also ensure the inclusion of the weaker section of the society.
With the introduction of the UAN, EPF accounts will get updated monthly and an SMS about the same will be sent the holder. There will be easy portability through UAN.
UAN refers to Universal Account Number is a 12-digit number comprising of all PF account across different organization centralized into one. The card comprises of employee’s photo and KYC and thus it also helps companies to know their employees.
Features of UAN
- UAN will ensure the centralization of employee data and decrease the dependency of employers on EPF.
- The UAN acts as an umbrella for a multiple member ids.This means that even if a person has a number of PF account he or she can link all the account under one UAN.
- It will help in easy transfer and withdrawal of claims
- The UAN portal can also be used to check EPF claim, EPF passbook, and other facilities.
- The employer will no longer require to hold back the employee’s number.
- employees can also check their employer’s contribution by checking their EPF account every month.
- Each employee will be issued with one UAN number
- Any change in job will not lead to change in UAN
- UAN employee registration is done through employee’s organization
- The linking of different account under UAN can be done in EPFO portal
Advantages for the Employees
1)Less employee intervention: With UAN any request for PF withdrawal does not require the approval of the previous employer. The PF account of your old organization will be automatically linked to the PF account of your new organization and money will automatically transfer from the old to the new account
2)Easy transfer of funds: UAN ensures that change in an organization does not lead to a transfer of money from the employer account to another account. All you need to do is give your KYC and UAN details to your new employer. Once these details are verified your old account will be linked to your new account.
3)PF Passbook: By mentioning the UAN in the PF passbook, you can also check your balance, an SMS will be sent every time when money is transferred or credited to the account.
4)Efficient pension Scheme: Since money is easily transferred from one account to another, employees do not need to withdraw their Pf money. This will ensure greater pension money after retirement.
How to Link Account Using UAN?
Earlier it was difficult to maintain multiple accounts at the same time. However, with the introduction of the system of UAN, employees do not have to worry about the transfer of the amount from one account to another.
Accounts can be linked by following the procedure below:
- To verify the transfer claim, employers must have the digital certificates of the employees.
- Your EPFO database must comprise of your both previous and your present PF account numbers and member ID.
- Register in the EPFO online portal.
- Now, Log on to the OTCP website, select the document type and the fill in your document details.
- Go to menu bar, select request for claim under claim and fill in the necessary details
Part A: Name, Bank account number, Email id, IFSC code of the bank.
Part B: Details of your PF account of your previous establishment, name, and address of the establishment. If your details are already in the EPFO database, it will automatically get filled up but if the details are not available then you will have to fill it up manually.
Part C: Here you will have to fill in the details of your current employer which will again be crosschecked against the EPFO database records.
- Select the employer (present and previous), who will attest your claim
- By clicking on preview, you can view your application and you can change the data if you want to.
- Download the transfer claim form.
- Next, you need to take the print out of form 13 and present it to the employer to complete the claim submission.
You will also be able to check the status of transfer through member portal account.
How to Activate UAN?
After getting the UAN number an employee must activate it by visiting the EPCO online portal.The following steps must be followed to activate the UAN number:-
- Visit the EPFO website and click on the “Activate your UAN” link
- Fill in your UAN number, mobile number, and Member ID in the UAN activation page
- Click on the“Get Pin” option. After this, you will receive an activation PIN on the registered mobile number.
- Fill the PIN number and click submit.
- Next, write your UAN login password to complete the process.
Linking UAN and Aadhaar
The Labour ministry has made it compulsory to link Aadhaar with UAN. This is because the Aadhaar comprises of address and identity details but also the biometric details of an individual.This makes the verification process easier and quicker. Further employees can update their KYC details in future using their Aadhaar details by simply logging in to their UAN account. Aadhaar can be linked with UAN with 4 easy steps:-
- Log in to UAN member portal. For successful login, a person will first have to activate the UAN.
- If already a member, enter your UAN number, password, and the captcha to sign in.
- Click on “Manage” on the UAN dashboard and then select “KYC”.
- After this, you will be redirected to a page where a form will appear on the screen to update KYC document.Enter the number and name of the documents in the appropriate columns provided.In the case of bank account you will also have to submit your IFSC code and in the case of passport or driving license, the expiry date will have to be mentioned.
Further, there are a number of benefits of linking Aadhaar with UAN. For instance
- Now, PF claims can be withdrawn within 5 days if applied online using Aadhaar number.This is mainly done to encourage Aadhaar seeding.
- Now, there will be less employee intervention as the claims will be available in field office application software without routing the same through the employer.
- The online claim forms will be available for only those people who have seeded their Aadhaar number and bank details with the UAN.
As not everyone is well – versed with internet and has a secured internet connection, EPFO (Employees Provident Fund Organization) have made submitting life certificate easier.
EPFO have laid down provisions that will help pensioners to submit their life certificate smoothly as they can submit their Jeevan Pramaan Certificate in physical form. However, this facility will be provided to people who have recorded genuine reasons for non – submission of digital Jeevan Pramaan.
Also, in case a pensioner has already submitted their Jeevan Pramaan Certificate digitally, they are not required to do so again. And they would have the option of submitting the digital or paper based certificate to pension drawing bank branches.
As per the new conditions of EPFO, pensioners who have not submitted Jeevan Pramaan digitally even once can do so within this month in physical form.
To submit Jeevan Pramaan, one can visit EPFO offices, pension disbursing banks and common service centres.
Jeevan Pramaan is a biometric enabled digital service for pensioners of Central government, State government, or any other Government organizations. Pensioners have to register themselves and then they can continue to generate Jeevan Pramaan by using the Biometric authentication. Jeevan Pramaan life certificate can produced digitally from the comfort of your home as it can be done online. However, the traditional life certificates can be produced only by the authorized Pension Disbursing Agencies (PDAs) / Pension Sanctioning Authorities (PSAs) like Banks, Post offices etc.
In India more than one crore families can be classified as pensioner’s families. And one of the major requisite for the pensioners is to provide life certificates to the authorized pension disbursing agencies like Banks, Post offices etc., following which their pension is credited to their account. It requires the pensioner to be physically present in front of the disbursing agency or getting a life certificate often becomes a major hurdle in the process of receiving the pension. Being physically present causes a lot of inconvenience to the pensioners because of their age and also people often choose to move to a different location for various reasons. Hence, digital life certificate for pensioners which is also known as Jeevan Pramaan address this problem by digitizing the whole process.
At present, nearly 48.48 Lakh pensioners have registered for Jeevan Pramaan. And after 1st November 2016, nearly 31.24 Lakh pensioners have registered under Jeevan Pramaan life certificate.
This online enrollment and biometric authentication system will simplify the way pension payouts have been functioning in India. And as a part of Digital India initiative, the Jeevan Praman Scheme aims at sparing the pensioner from the trouble of visiting a PDA or PSA for the submission of life certificate.
According to the sources EPFO is introducing a new scheme of automatic transfer within 3 days. After the implementation of this scheme an employee will no longer have to transfer their Employee Provident Fund Account.
The Employees’ Provident Fund Organization (EPFO) is pondering over the option of introducing automatic EPF transfer if he / she change their job.
Contribution to the EPF Account – In EPF account, every salaried person contributes a certain portion from their salary to their EPF account along with the same amount of contribution by their employer. The contribution then compounds at a rate declared by the EPFO every year. At present, the rate of interest is 8.65% per annum.
Features of New EPFO Scheme i.e. Automatic Transfer Scheme
- Easy Hassle – Free process
The new automatic transfer scheme is going to be very convenient for the employees as the account will be transferred automatically which does not even required an application.
- Linking PF Account with Aadhaar
As Government of India has mandated the 12 digit Aadhaar card to be linked with almost every other document, this linkage can save your PF account from duplicity. Also, in order to register with the unique identity number, the transfer of an employee’s account is simpler.
Though Government have declared in Aadhaar Privacy Case that “privacy is a fundamental right”, it is yet to see if it effects on linking Aadhaar with PF.
To know more about the Aadhaar Privacy Case read: Verdict of Aadhaar and Right to Privacy Case https://rupeenomics.com/verdict-aadhaar-right-privacy-case/
- Tracing Old Accounts
As there were lot of errors at the administration level, the employees mostly choose to withdraw their PF account.
It was also made it clear by the Employees Provident Fund Organization that an employee can withdraw their PF account only if they are unemployed for three – months or if they are retiring.
However, the authorities have introduced Universal account Number (UAN) which will find a way for the unclaimed PF accounts as the process is being worked upon to be less tedious.
UAN was introduced by the EPFO for a quick and hassle free transfer of PF accounts. With the introduction of the Universal Account Number an employee can simply transfer their PF account from one organization to another by providing the UAN number to the new employer.
To read on UAN activation you can also read: How to activate your UAN