if the epf isnot linked to uan what happens

EPFO has brought some major changes in the way it works and a new system called UAN (Unique Account Number) is in place now. This UAN is a way to simplifying the process of collecting and managing the provident fund money for employees.

Groundwork – The pain of the old EPF system

Before I start explaining, Allow me become back a scrap to assistance yous understand a bit of groundwork. Earlier when a person joined a new chore for the first time, he got an EPF business relationship opened by the employer where his provident fund money was deposited. For years, this money got accumulated in that EPF account.

Now when this person left his job and joined some other organization, the new employer again assigned him a new EPF account and started depositing his provident fund money in that account.

This way, if a person changed his job five times, he had v unlike EPF account numbers and in instance he wanted to withdraw his EPF money, he had to employ at v different employers or transfer then one by 1 to his latest EPF business relationship and this called for a big headache

This way, if a person changed his chore at five different places, he had 5 EPF accounts and now he had to either withdraw money from his EPF accounts one by ane, or they have to transfer the old EPF coin to new EPF account.

But that was a big pain!.

Transferring your old EPF money to new EPF meant filling upwardly the forms, then EPFO department sent to your old employer to become their signatures and if they denied or didn't be at all (if they closed downwardly), and then things would fall apart and now you were stuck with no information, no proper status and no thought what yous need to do.

Calling EPFO section or emailing them didn't piece of work most of the times, and a lot of people just let their old EPF account exist and didn't practice anything, because of the sheer amount of uncertainty and ambiguity. This whole system was raw, old and not friendly for the employees at all.

Things take changed now quite a fleck later UAN has been introduced and most of the pain points accept been addressed. Permit me at present share some critical points most UAN or Universal Account Number as it's chosen.

What is UAN?

In simple words, UAN is a 12 digit single business relationship number which will be linked to your provided fund money. At present you don't need to worry near different EPF accounts and then transfer them when y'all join a new job. At present

each employer will just give you a member id, and all those member ids will be linked with the same UAN. Fifty-fifty the employee's having EPF under private trusts will be assigned the UAN.

This is the new system and will be applicable at present for your electric current and future employment. Any EPF account you had before this, sadly will not exist handled in this arrangement. You volition have to manually deal with onetime EPF accounts, for anything new will now be under UAN. The image beneath clearly shows the situation now and and then.

3 Steps of obtaining and activating your UAN?

Below there are steps to be followed if you want to become your UAN and activate it.

Step one – Get the UAN from your Employer

The first footstep is to enquire your employer for your UAN. EPFO section has already allotted most of the UAN (four.2 crores every bit the last count) and communicated it with employers. So virtually probably your employer must have shared your UAN number to you.

If your employer has non yet shared it with you. You can still validate if your UAN has been issued or not. For that, yous need to follow the steps below

• Go to https://uanmembers.epfoservices.in/check_uan_status.php
• Choose your Country and Office jurisdiction for EPF
• Enter your Institution Code and EPF account number

Then click on the "Check Status" button and information technology will show a message saying "UAN is activated" in case it's already activated past EPFO section. Once you see that message, then bank check it with your employer. Beneath screenshot gives you lot an idea virtually how to do information technology.

And then like this, you can first verify if your UAN is allocated or not confronting your EPF. Also, note that UAN is to be allotted to only contributing members whose accounts are active. All the fallow/inactive account is going to get airtight.

And so if y'all have 3 EPF business relationship, out of which 2 are quondam and fallow, delight check the status using your current EPF business relationship number which is active.

Step 2 – Activate the UAN

The next step is to activate your UAN. For that, you need to follow the steps below

• https://uanmembers.epfoservices.in/uan_reg_form.php
• Enter your UAN, mobile number and EPF business relationship details
• Get authorization Pin on your mobile
• Submit PIN and activate your UAN
• And then generate your login/password and registration is consummate.

Step three – Update your KYC details

After that, y'all should log in to UAN portal with your username and countersign and in one case y'all enter the portal, you lot will see many options like for downloading passbook, downloading UAN card, and editing your details. Autonomously from that, yous will come across an option to Edit your KYC Details.

Following are the documents which tin can be used for KYC. You need to upload a scanned copy of whatsoever one document

• National Population Register
• AADHAR Card
• Permanent Account Number
• Depository financial institution Business relationship Number
• Passport
• Driving License
• Election Carte
• Ration Card

Below yous tin see an case of how information technology looks when you choose PAN as an selection.

Special Benefits of UAN

Let the states now see some of the benefits of UAN compared to the old EPF system. Some changes in UAN were really required from concluding many years (even decades). Allow'due south run across them one by 1.

Benefit #one- Communication directly betwixt employee and EPFO

The best thing about UAN is that now the communication can happen directly with EPFO and Employee. Earlier the employer was in betwixt employee and EPFO for most of the things, specially for withdrawals and transfer of EPF.

Your employer had to sign the documents from their side, now this will non happen. The employer volition at present deed like a depositor in your account and nothing else.

Benefit #2- UAN will remain same throughout the career

The best function is that Universal account number is going to be same throughout your whole career. Each time you lot modify your chore, all you lot need to exercise is provide your UAN to your new employer and he will tag the member id they create for you to that aforementioned UAN.

Note that your overall career moves volition be recorded at one place because your UAN is nothing but a primal database of all your employers and your by employment, but this volition simply be visible to the employee and no one else.

Benefit #3- Sms notifications when your Provident Fund is deposited

Now each month, when your employer deposits your provident fund coin, y'all will directly go an SMS notification informing y'all well-nigh it. This is really great considering now you know if your employer is actually depositing the money with EPFO or not.

This will be exactly like you become notifications from your bank when your account is credited with bacon. This is especially nice considering in past there have been cases where the employer didn't deposit the EPF money for years and months and employee came to know about information technology much after and and so they had to lose their hard earned money

Do good #four- Update your KYC at one place

Now y'all just have ane unmarried window where you can update your address, mobile, email and other KYC details in case they change in futurity. A lot of issues happened in the earlier model where the same person had a unlike accost and contact details with dissimilar employers and that created issues while withdrawal and transfers.

Do good #v- Transfer of your Provident fund money automatically

At present the transfer of EPF is very simple. When you join a new job, you just demand to furnish your UAN number to your employer and automatically within 1-2 months, your provident fund money will be transferred. In a way, it just has to become linked to your UAN

Benefit #6- Extremely friendly process for EPF withdrawal or Applying for Loan

This is however in process and tin can take up more than than 6 months to a year, merely once information technology's complete, and then the procedure for withdrawal and loan will be super fast and uncomplicated. You might not be aware that you tin can withdraw from your EPF for important events in life like union, ownership a house, or medical emergency discipline to some rules and restrictions.

Once UAN system is fully functional, you then just need to fill up a form and provide your fingerprint to a biometric reader and once things are matched, the corporeality will be transferred to your registered bank account within an 60 minutes.

This used to take months and years before. I am not sure if in reality, it would exist equally simple and fast, as they merits – simply all the same, things are leap to get simple and fast.

Decision

Make sure your UAN is activated and y'all have uploaded the KYC document. If you lot have any other queries regarding UAN, please share it with us and we will endeavour to discover out the answer.

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Source: https://www.jagoinvestor.com/2015/02/uan-epf-guide.html

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