Retirement is a crucial time in terms of managing funds and finance. Working all life and collecting every penny to spend wisely as well as save for the future has been an integral part of Indian mindsets. Keeping the future in mind, almost all organizations of the nation, whether public or private, provide additional benefits to their employees in terms of gratuity, employee provident funds, or personal provident funds. Employee Provident Fund (EPF) is a retirement beneficiary scheme wherein employers and employees contribute to saving money for the employees’ retirement. EPF India is considered to be one of the world’s largest retirement benefit schemes, where employers and employees together contribute around 12% of the basic salary to this fund. This contribution is made via a unique code known as Universal Account Number (UAN), a 12-digit unique number provided to each employee. UAN activation, generation, and assigning are done by Employee Provident Fund Organisation (EPFO).
UAN is essential for every employee and remains the same throughout life, irrespective of the number of times they change their organization. UAN activation can be done online using the official EPFO website. This also helps the employees keep a check on the debit and credits from the account. Activating the account requires essential documents like an Aadhar card, PAN Card, Bank Account details, KYC, and other identity or address proof. UAN has made it easier for employers and employees to access and complete transactions, and the online system added easier access and more efficient processes to handle the procedure.
There are several benefits of getting a UAN for EPF, and a few of them are as follows: –
- Easy Transaction – the UAN allows ease of transaction and also allows the employees to keep a check. Before the digital medium was introduced, it was time-consuming and often required heavy paperwork and formalities. The online medium has made the task pretty easy and less time-consuming.
- Ease Of Access – earlier, the individual needed to visit the EPFO every time one changed their organization, but with UAN, the access has become pretty straightforward. It doesn’t require any visits to the office. The number ensures streamlined transactions and additional security; all transaction details can be received via SMS or e-mail.
- Minimal Interference of Employer – before the UAN was introduced, the EPF withdrawal process involved many hassles as the earlier employer needed to approve the application. But with UAN, the process doesn’t require any significant interference on the employer’s part, and the individual can easily withdraw the amount.
- Universal in Nature – the UAN is universal and unique in every sense as it is valid for a lifetime and different for every individual despite the nature of the job they are doing. It creates a sense of security for the individual regarding the safe money transaction and a secure future.
Thus, getting a UAN for EPF is necessary for every working individual for a secure future. It also helps get a tax rebate and allows the individual to benefit from retirement schemes. One can visit 5paisa for detailed information on EPF and UAN and other essential details related to the Provident Fund.