UAN Login: Universal Account Number or UAN Login is service associated with the Employee’s Provident Fund Scheme in India and was launched by the Prime Minister of India Mr. Narendra Modi on 1st March 2014. It is service where all the provident fund accounts of a person employed in the organized sector are maintained under one umbrella called the Universal Account Number. To understand UAN better, we must know a bit more about Employees Provident Fund Scheme in India and the organization called Employees Provident Fund Organisation.
What are Employees Provident Fund and Employees Provident Fund Organisation?
Employees Provident Fund Organisation or the EPFO is an organization controlled by the Ministry of Labour and Employment, Government of India. The Employee’s Provident Fund and Miscellaneous Provisions Act was passed in 1952 to form the Central Board of Trustees, and the EPFO brought The Employees’ Provident Funds Scheme, 1952 formed under section 5 of the Act into full force on 1st November 1952.The organization runs the biggest social security scheme in India and aims at securing the future of every person employed in every part of the organized sector, and their dependents after their retirement or prematurely death.
EPFO is headed by the Central Board of Trustees in administering a compulsory contributory Provident Fund Scheme, Pension Fund Scheme and Insurance Scheme for all of its members. The Employees Provident Fund or EPF is the fund that is created by the joint contribution of the employer and the employee, and UAN Login is the facility through which an employee can check his/her EPF balance.
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Employees’ Provident Fund Organisation Functions
The EPFO manages 3 different schemes under the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952. These schemes are as follows.
Employees Provident Fund Scheme or EPF: It is a compulsory tax-free savings scheme where every person working in the organized sector in India, must contribute 12% of basic pay + DA of their monthly salary towards this scheme. The employer is also required to match the contribution made by the employee. The employer contributes 3.67% towards EPF and 8.33% towards EPS or Employees’ Pension Scheme. The amount deposited in the PF account of the employee earns interest at the rate of 8.67% every year and is tax-free unless the money is being withdrawn before 5 years of service and form 15G is not submitted during The interest rate is decided by the EPFO every year. Inactive accounts do not earn interests. This balance can be checked from the UAN portal through UAN Login.
Employees’ Deposit Linked Insurance Scheme EDLI: EDLI is a life insurance benefit that is provided to all employees working in the organized The employee gets enrolled for EDLI automatically when getting enrolled for EPF. The employee does not make any direct contribution towards EDLI, but it’s the responsibility of the employer to manage it for the employee. The employer contributes 0.50% of employee’s basic pay towards the premium of EDLI scheme. This is a scheme where if the employee passes away, then the employer must pay thirty times the employee’s basic pay to the employee’s nominated beneficiary. The prerequisite for EDLI is employee must be under active employment at the time of death. There are certain scenarios where the EDLI amount appears to be too low. In those cases, the employer has the option to arrange a private or national insurance provider to give cover to its employees. The EDLI cover applies worldwide and 24 hours a day without any exclusion.
Employees’ Pension Scheme or EPS: Employees enrolled for EPF are automatically enrolled for EPS as well. The employee does not make any direct contributions towards EPS, but the employer does. The employer contributes 8.33% of the employee’s salary (Basic + DA) towards EPS. Additional to this, the central government also contributes 1.16% of the employee’s basic pay towards EPS. This fund does not earn any interest; however, the minimum service period needs to be 10 years to avail the benefits of Employees’ Pension Fund. This scheme is aimed at providing a monthly pension to every salaried individual employed in the organized The EPS provides lifelong pension to the employee and to the employee’s spouse and two children if the employee passes away. Recently the government has increased the pension amount to INR 1000 per month from INR 500.
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What is Universal Account Number?
Employee Services: On 1st March 2014, the Prime Minister of India Narendra Modi launched the Universal Account Number or UAN service. It is 12 digit number allotted to every employee enrolled with EPFO. It was introduced as many employees changed organizations frequently leading to a huge confusion about their current PF accounts. After this, they tried transferring the balance of their old accounts to new accounts. Maintaining and transferring different PF accounts of the same person was a proving to be a hectic task. With this in mind and to simplify the process of consolidating all PF accounts of a person under one universal account the UAN was launched. One individual is allowed to have multiple PF accounts, but they are all registered under a single UAN number. All that one has to do is submit the UAN number while changing organizations and his new PF account would be opened under that UAN. In the UAN portal, a UAN Login needs to be created with the UAN number and other details. With UAN Login members can then check the current status of their claims and transfers and avail other benefits such as KYC update and passbooks printing. There is a facility to transfer claims from on PF account to another, and thus the process of maintaining PF has become very simple. The EPFO has introduced a new portal named https://unifiedportal-mem.epfindia.gov.in/memberinterface/ for UAN management and for the benefit of the employees.
Employer Services: With UAN introduced the job of employers have also become easier allowing them to concentrate more on the efficient running of the organization and plan more for the betterment and growth of their employees. UAN Login for employers allows them to easily transfer their own and the employee’s contributions from their linked bank accounts. Government schemes like Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) can be accessed from the newly launched employer’s portal where an employer is encouraged to generate more employment in its organization while the government offers to pay the employer’s share of EPS for the employee as an incentive. This scheme enables an employer to create more jobs in its establishment and helps fight the problem of joblessness in India. Employers can update and submit KYC documents of their employees through the UAN portal and also file ECR online. The EPFO has launched a unified portal called https://unifiedportal-emp.epfindia.gov.in/epfo/ for the benefit of the employers.
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Recent Changes in the PF withdrawal Procedures
As of 2016 the Ministry of Labour and Employment, Government of India introduced new PF withdrawal rules to facilitate early withdrawals. These are a part of amendments made to the Employees Provident Fund Scheme, 1952.The following are the changes:
- New separate forms have introduced (downloadable from EPF portal) to facilitate claims submission for employees with and without Aadhar Card.
- Attested claims form from any gazetted officer, magistrate, MLA, MP or President of the Village Union of the employee can be submitted to apply for claiming the PF amount.
- The Provident Fund can now be withdrawn without the assistance from the employer if the employer is not cooperating with the employee.
- The EPF balance amount cannot be fully withdrawn before attaining the retirement age of 58 years.
The EPFO is empowering every person employed in the organized sector. Their compulsory savings schemes have made millions of life secured and will continue to do that in the years to come. It is aiming for a fully digitalised service by the year 2030.Although people in foreign nations enjoy a better social security service, yet in a huge country like India, providing people with such multi-role useful social security scheme is a mammoth task that needs to be praised.
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