The concept of a lifelong employment with a single employer and a gratifying golden handshake at the retirement is rapidly becoming archaic. Today, employees switch multiple jobs throughout their career by choice or necessity. This flurry of job hopping creates challenges for managing retirement savings, particularly for the Employees’ Provident Fund (EPF), commonly referred to as PF. Fortunately, with the introduction of the Universal Account Number (UAN), managing PF has become substantially easier and more user-friendly.
The UAN is a unique 12-digit number, introduced by the Employees’ Provident Fund Organization (EPFO)- the governing body of all EPFs in India. This number is linked with the Employee Provident Fund (EPF) Account and remains constant throughout the lifespan of an employee, irrespective of job changes. By leveraging its myriad benefits, one can operate and oversee their PF without hassles.
One of the biggest advantages of the UAN is that it simplifies the process of PF transfer during job changes. Earlier, employees had to submit the transfer request and wait for the ex-employer and the new employer to process it. But now, with the linked UAN, the transfer happens automatically.
Moreover, the UAN enables employees to monitor and manage their PF accounts seamlessly. They can check their balance, track and verify deposits, and update KYC documents online by logging into the EPFO’s member portal using their UAN. It negates the need for employer involvement in PF management – enhancing transparency and control of the individual over their own PF savings.
The UAN also facilitates easy withdrawal of PF amount. With an active UAN linked to Aadhar and a bank account, an employee can raise a claim online and get the amount directly credited to the linked bank account without the employer’s signature.
Additionally, the UAN comes in handy at the time of availing a PF loan. It serves as a proof of employment, evidencing the employee’s PF contributions. It simplifies the process and enhances the chances of approval.
On top of all these, with the UAN linked to the mobile number, employees receive updates and alerts related to their PF account. This can aid them in tracking any erroneous transactions or discrepancies.
However, while leveraging UAN for EPF PF management, one should not overlook certain aspects. Firstly, the UAN is operational only when it is activated by the employer. Secondly, the KYC details should be updated regularly, so any changes in the account are accurately reflected.
In conclusion, the UAN brings in the aspect of transparency, user-control and efficiency to the PF management- making it a tool worth leveraging. Job changes, thus, no longer imply inevitable PF confusions; thanks to the UAN, your retirement savings now move with you.
Disclaimer:
This article is for information purposes only. While managing and investing in PF using UAN can prove to be advantageous, it’s essential to analyze all aspects of financial investing in the Indian market. Investing in PF and any other scheme always carries potential risks, and professional financial advice should be sought when necessary.
Summary:
The Universal Account Number (UAN), a unique 12-digit number allotted by EPFO, has brought about a paradigm shift in the way employees manage their Provident Fund (PF). By linking all PF accounts, the UAN has simplified PF transfer during job changes, allowed online monitoring, and update of PF accounts, facilitated smooth withdrawal of PF, and eased the availing of PF loan. It has increased transparency, reduced the role of employers in PF management, and ensured that retirement savings move with the employee. However, the efficient use of UAN demands its activation by the employer and regular updating of KYC details.
The Universal Account Number (UAN), a unique 12-digit number allotted by EPFO, has brought about a paradigm shift in the way employees manage their Provident Fund (PF). By linking all PF accounts, the UAN has simplified PF transfer during job changes, allowed online monitoring, and update of PF accounts, facilitated smooth withdrawal of PF, and eased the availing of PF loan. It has increased transparency, reduced the role of employers in PF management, and ensured that retirement savings move with the employee. However, the efficient use of UAN demands its activation by the employer and regular updating of KYC details.The Universal Account Number (UAN), a unique 12-digit number allotted by EPFO, has brought about a paradigm shift in the way employees manage their Provident Fund (PF). By linking all PF accounts, the UAN has simplified PF transfer during job changes, allowed online monitoring, and update of PF accounts, facilitated smooth withdrawal of PF, and eased the availing of PF loan. It has increased transparency, reduced the role of employers in PF management, and ensured that retirement savings move with the employee. However, the efficient use of UAN demands its activation by the employer and regular updating of KYC details.The Universal Account Number (UAN), a unique 12-digit number allotted by EPFO, has brought about a paradigm shift in the way employees manage their Provident Fund (PF). By linking all PF accounts, the UAN has simplified PF transfer during job changes, allowed online monitoring, and update of PF accounts, facilitated smooth withdrawal of PF, and eased the availing of PF loan. It has increased transparency, reduced the role of employers in PF management, and ensured that retirement savings move with the employee. However, the efficient use of UAN demands its activation by the employer and regular updating of KYC details.