The Universal Account Number or UAN is a landmark reform that has streamlined the process of gratuity accumulation management for employees in India. Implemented by the Employees’ Provident Fund Organization (EPFO), the unique 12-digit UAN issued to every employed individual is an important tool for managing their Employee Provident Fund (EPF). This article aims to highlight the critical benefits of owning a UAN and how to leverage its functions through the UAN Portal for effective management of your benefit funds.
Understanding the UAN
UAN has successfully alleviated the cumbersome process of PF transfers and withdrawal while switching employers. Earlier, employees had to undergo tedious procedures to transfer or retrieve their PF amounts during job changes. But now, with a UAN, your EPF can be easily consolidated and managed under a single identification number.
Advantages of UAN
1. Simplified PF Transfers and Withdrawals:
UAN has made EPF transfers and withdrawals a breeze. By linking your UAN with your KYC documents– like your PAN (Permanent Account Number) or Aadhaar Card – through your UAN Portal, you can initiate the transfer or withdrawal of your EPF balances with a simple mouse click. Remember, any withdrawal made before five years of continual service is liable to taxation.
2. Seamless Job Switching:
The UAN ensures that irrespective of how many times you switch jobs, your EPF remains intact under a single PF account. This renders the practice of managing multiple PF accounts obsolete and the EPF balance is automatically transferred each time you change a job.
3. EPF Balance Check Online:
Ever wondered how much PF has been accumulated over the years? The UAN Portal allows you to check your EPF balance online at any time. You can download your passbook from the UAN Portal for details regarding your regular contributions.
4. Easy Claim Settlement:
With UAN, you don’t need employer attestation to settle your EPF claims. You can directly apply through the UAN Portal once your Aadhaar is linked and verified.
5. Generates SMS Alerts:
With UAN activated, you will receive SMS alerts each time your employer contributes towards your EPF account, ensuring complete transparency.
UAN Portal: UserService
The UAN Portal provides a user-friendly interface that enables employees to access their data and monitor their EPF accounts easily. Apart from viewing your EPF balance, the portal allows you to download your Passbook, and UAN Card, update your KYC data, claim PF withdrawal, and check claim status.
It’s essential for UAN owners to familiarize themselves with these portal services to take full advantage of the features at their disposal.
Calculating EPF Balance
Let’s assume you are an employee with a monthly Basic Salary plus Dearness Allowance (B+DA) of INR 15,000. Your contribution of 12% would equate to INR 1800 monthly. If the Employer’s contribution is 8.33% into your EPF account (which is INR 1250 approx.), your total monthly contribution to EPF would be INR 3050 (assuming equal contributions so far by the employer).
If you’ve been contributing for let’s say 5 years (60 months), your total EPF sum would be INR 1,83,000 (INR 3050 * 60 months). This simple calculation available through the UAN Portal can help in financial planning.
Conclusion
The UAN and its associated portal have simplified the management of EPF for the Indian workforce, leading to enhanced transparency and financial planning for their retirement years.
Summary
The Universal Account Number (UAN) introduced by the Employees’ Provident Fund Organization has revolutionized the management of the Employee Provident Fund (EPF). The UAN has simplified EPF transfers and withdrawals, made job switching hassle-free, enabled online balance checks, eased claim settlement, and provided SMS alerts regarding contributions. The UAN Portal further aids in managing EPF accounts, updating KYC data, and calculating EPF balances. Despite its numerous advantages, investors are advised to understand the risks associated with trading in the Indian financial market.
Disclaimer: Investment and trading in the securities market are subject to market risks. Investors must do their own research and bear all the risks, considering the investment objectives, level of experience, and risk appetite.
