The Universal Account Number (UAN) stands as a revolutionary initiative by the Employees' Provident Fund Organization (EPFO) to modernize and simplify the tracking and management of provident fund accounts for millions of employees across India. It is a unique 12-digit identification number assigned to each employee when they start working. The employees go through the one-time process of creating their UAN, after which their employers assign a different membership ID that gets linked to their UAN during their career
The primary goal of UAN is to assist employers and employees in tracking their mandatory EPF contributions throughout the employee’s career life until retirement. The UAN is easily accessible online, making account management and forced financial savings easier, while also helping to build up a retirement corpus.
Universal Account Number (UAN) facilitates the smooth transfer of provident fund balances from one employer to another, eliminating the hassles of the manual transfer process and ensuring the continuity of retirement savings, promoting long-term financial security for the workforce.
What is UAN?
UAN stands for Universal Account Number. It is a unique 12-digit identification number allotted by the Employee Provident Fund Organization (EPFO). The UAN serves as a hub for the various Member IDs assigned to employee by multiple employers throughout the employee’s career life.
The goal is to combine all of employee's Member Identification Numbers (Member IDs) under a single Universal Account Number. The employee will be able to examine information about each Member Identification Number (Member Id) associated with it.
If an employee already has a Universal Account Number (UAN), they must provide it to their new employer, so that the employer can link their newly assigned Member Identification Number (Member Id) to their existing Universal Account Number (UAN).
UAN helps employees track the employee’s EPF contributions, check EPF balance, transfer/withdraw funds from their PF account online and provides many more services with the click of a few buttons.
Benefits of UAN Activation
The UAN portal helps resolve many issues, such as incorrect personal details, Adhaar linking errors, forgotten passwords, etc., by verifying the Adhaar number via the UIDAI portal.
When an employee changes their job, their employer provides them with a new member ID to like with their UAN. If the employee does not have a UAN, the employer carries out the one-time procedure of creating it for the employee.
Since the UAN e-Sewa portal is always accessible online, it facilitates easy management of the employee’s PF accounts such as tracking EPF contributions, deductions, withdrawals, transfers, and other account activity.
UAN can help the employers authenticate and verify the validity of all PF accounts of the employee through their UAN if KYC documents are verified.
The flexibility to withdraw 50% of the EPF allows employees to meet financial goals like children’s higher education, education for self, education for siblings, marriage, etc.
Employees can withdraw from their EPF corpus to meet their financial needs for personal emergencies or special events. However, there is a specific limit that can be availed, along with other terms and conditions.
Employees can also withdraw from their EPF corpus for funding unpredicted medical emergencies and critical illnesses like surgeries and chemotherapy.
For Employees of companies that do not offer the group insurance scheme, insurance benefits are extended to them through the Employee Deposit Linked Insurance or EDLI scheme.
How to Generate and Activate UAN Number?
Each employee has a Universal Account Number, which can be checked through one’s employer or by logging on to the UAN Portal.
UAN generation by employer
You can contact your employer or HR department to obtain and generate your UAN number for the first time. This number is typically on your monthly salary slip, as PF deductions are reflected in your total earnings.
When you start employment, the employer will generate your UAN number on your behalf. The company will ask for a few documents for a one-time procedure, namely proof of identity, address, and bank account details like account number and IFSC code for verifying KYC.
After successful KYC verification, the employees must register themselves on the UAN official website with the required information, such as their contact number and the newly created UAN number. The UAN acts as the user ID for the employee.
Next, the employee will be required to enter the OTP code sent to their contact number. Once the OTP has been verified and the employee has set up a new password for the account, they will be able to access their EPF passbook.
Once the UAN number is generated, it remains constant. throughout the employee’s career life, irrespective of how many times they change their jobs.
Self-UAN generation via UAN Portal
In case your employer does not provide a UAN or does not show it on the salary slips or any other document, then the employee can get their Universal Account Number from the UAN portal on their own.
Visit the UAN Portal and log into your account.
Check your UAN status by entering your PAN and Aadhaar numbers, along with any other required details.
To find your EPFO office and state, enter your PF number or member ID and choose the correct option from the dropdown menu.
You can use either your PAN or Aadhaar number to search for someone's UAN.
Fill out the form with your name, date of birth, and mobile number, then enter the code shown.
Click ‘Get PIN’ to authorize your account. You will receive your PIN via SMS on the mobile number you provided.
To see your details, click on "See the UAN number." You will receive a message on your registered phone.
Self-generated UAN Activation
After the UAN is generated, you can activate UAN by following the listed steps:
To activate the Universal Account Number, you need to visit the UAN portal, click on the ‘Activate UAN’ button and enter your UAN, PAN number, and Aadhaar Number.
Provide your personal details and mobile number as requested on the page.
You will receive an OTP PIN on your registered phone number.
Enter the OTP and click ‘Authorize and Activate’.
You can also activate your UAN using the EPFO app. Download the UMANG app.
Conclusion
In conclusion, UAN activation offers several substantial benefits to employees, such as seamless online access to their EPF accounts, expedited claim settlement, and the ability to consolidate multiple EPF accounts. It is crucial for employees enrolled in the EPF scheme in India to grasp the significance of a UAN and the procedure for its activation.
