Universal Account Number (UAN): How to Get, Benefits, Withdrawal
Universal Account Number for PF Account Holder
Till now, every PF account holder required changing EPF account whenever he/she changed the job which was a painful and time consuming process. This change involved transferring the money from old account to the new and the process would take not less than 2 months and in some cases even more forcing employees to withdraw their money just to avoid the irritating transfer process. The whole process involved verification of each account holder through the EPF system via your employer.
But now onwards, provident fund subscribers life will become hassle free as India’s honourable prime minister Shri. Narendra Modi has launched Universal Account Number (UAN) for all the PF subscribers. With UAN, every account holder will have an unique identification and your employer’s intermediation won’t be required.
How to Get UAN
As of now, allotment of UAN is done only to the employees in service for the period 01-January-2014 till 30-June-2014 and so far 41.7 million subscribers have received their UAN number. Getting the number is very easy and here are the steps:
1) EPFO will allot universal PF number to the employers
2) Employer will then provide the same to the contributing employees along with a new member-ID.
3) Employees in return have to provide Know Your Customer (KYC) details to the employer. KYC details to be provided are:
- Identification Proof (Passport/PAN Card/Aadhaar Card). Check out why having an Aadhaar card is now important.
- Address Proof (Passport/Ration Card/Driving License/Voter ID)
- Bank account details, IFSC code etc.
4) It is the responsibility of the employer to verify KYC details provided the employee. Your new member identification number would be linked to UAN by the employer which will make the process of transferring the fund smoother.
5) Each employee will then have to register themselves on the official UAN website (https://uanmembers.epfoservices.in) by clicking on Activate UAN Based Registration and enter following mandatory details:
- UAN number provided by your employer (Note: UAN would be your UserID for all the future logins
- Mobile number
- Member ID given by the new employer.
Starting 16th Sep, 2015 you can also activate UAN using mobile app and SMS.
6) Once these details are submitted, you’ll receive an authorization PIN (OTP) on your mobile
7) After entering this PIN, submit it and then enter these details:
- Father’s name or husband name
- Date of birth etc.
8) You’ll have to then create password. This ends the registration process and you can see your updated EPF passbook.
What if employer has not given you the number
You need to first check whether you have been allotted the number or not by visiting EPFO website: http://uanmembers.epfoservices.in/. And enter your current PF number and the system will display the status. If you have been allotted the number message would be displayed “Your UAN is allotted, kindly get your UAN No. from your employer”. You have to then ask your employer for UAN and also provide KYC details. Employer will then link your details with UAN.
What if you move to a new job
In case you switch your job and move to different employer, provide UAN and KYC details. Employer will allot you new member ID and link this to UAN.
How to transfer money from the old account
If you have previous account before UAN was allotted, application for transferring the funds should be done via digital or physical form.
How money withdrawal process will change
Till now the biggest pain faced by the account holder for withdrawing the money was the transfer request and signature by the previous employer and then sending the details to the employee provident fund organization. But UAN has removed the involvement of the employer. Moving forward there would be no need to request for transfer as the funds from old account to the new one would be automatic with the condition that verification of KYC is done by the current employer.
Apart from the ease of operating EPF account, other benefits of UAN are:
- Throughout the career the number would be portable
- Download UAN card
- Check transfer claims
- KYC documents can be uploaded online (scanned copies) provided these have been verified by the employer
- Add all your previous member ID’s
- Account holders can check the balance online. For this they will have to download the EPF passbook.
- Funds Transfer: The biggest advantage of UAN is that funds transfer from old employer to the new is totally hassle-free. Once verification of KYC is done by the new employer, the transfer of money from old to new will be automatically done.
- Greater Retirement Benefit: Due to complex and time consuming process of transferring the fund, earlier account subscribers would prefer withdrawing the fund rather than transferring the same. This resulted in lesser pension money received after the person retires. Because withdrawal amount also includes the contribution made by your employer. Due to ease of transfer with UAN, account holder will get higher pension amount after retirement because this is the time when real need of money arises.
Have you opened Sukanya Samriddhi Account for your girl child? If not, open it today. See this post on interest rate calculation for this scheme where investing Rs. 10,000 for 14 years will earn Rs. 5,26,051 after maturity.