Link Aadhar with your UAN :- EPFO launches a special drive: Mission Consolidation “One Employee – One Account” on May Day
After linking the UANs with Aadhar cards, the Govt. has started another initiative called the one employee – one account scheme where every member of the EPF will have a single account to get easy and efficient access to the Pf accounts. An employee who works for public sector or private sector may have several accounts of Pf under his / her name. But from now on, under this special drive, every PF holder must have a unique UAN number. And after this, all PF accounts will be merged and only one account will serve multiple purposes.
What is One Member – One Account drive?
This special mission has been taken up by the Govt. and will be implemented in every sector where the employees have operational provident fund accounts under their name. Employees may serve for central govt., state govt., any public unit or any private sector. In the total service period of an employee, he / she may have several PF accounts of different categories under his / her name. But to bring transparency and efficiency in the system of self administering own PF account, the Govt. ahs decided to merge all the PF accounts into one universal PF account.
Advantage of having a single EPF account instead of multiple haphazard accounts
There were several instances of inconvenience faced before the digitization process of the PF accounts of the employees, were started. Employees with multiple PF accounts would have to go to the doors of all the employers which might have differently located also. This scattered Pf accounts were inconvenient to maintain for both the employer and the employee. In case of keeping records of the account balances or account updates, they would have to visit every employer to gain access to their PF accounts. So to remove this inconveniency, the scheme to have on electronic PF account per employee have been started which will have one unique account number along with electronic pass book for full access to PF account for deposit, balance enquiry, withdrawal and instant SMS alert or email alert.
Universal Account Number (UAN) – the key to join and operate PF accounts
The UAN is the principal key to join all the PF accounts of an employee or PF accounts holder. It is an unique and universal number which will be provided to each EPF member who have registered themselves under the EPF policy of the Govt. So This UAN will act as the one and only key for several PF accounts. Now, under the special drive for joining and making multiple provident fund accounts of one EPF member to a single master account, the UAN will play the foremost role to uniquely identify each member and tag them with a single PF account.
When the announcement for EPFO one account plan did came?
The scheme to implement a single operative EPF account for a single employee was going to be launched any time soon. But this announcement of one employee to have only one EPF account was done on the occasion of International Labour’s Day which is also known as May Day, celebrated all over the world on 1st of the month of May. The Labour Ministry of the Govt. of India has chosen this date to launch this project of one provident fund account for each employee through which they will have digital / electronic access to their accounts. Through this, the employee will have empowerment and the right to free access to their own money saved in the EPF account.
Transformation process of multiple PF accounts to one EPF accounts under the EPFO scheme
Suppose a member of EPF has multiple PF accounts under his / her name. This is possible is he / she has left some earlier jobs and now working under any public or private sector. So all earlier accounts of provident fund registered under his / her name will be dissolved first and a single account with all IT facilities will be provided to the employee who is already a member of EPFO project. For this procedure to happen, the employee must give all details of the past PF accounts under his / her name to the EPF official. If he / she have a generated UAN then it will be easy to link the UAN to the newly opened single EPF account. Other details like member ID or employee ID along with the registered mobile number is to be provided.
Creation of new EPF accounts for newly joined employees
In case of a new employee, who have not worked earlier in any organization and the present job is the first job he / she have joined, the procedure for opening an unique EPF account is little different from the past serving employees with multiple PF accounts under their name. At first, the process of allotment of new UAN will be done to the fresh employees. All necessary KYC documents like PAN card, proof of identity and most importantly Aadhar card will be required for this process. After getting registered under the EPFO through UAN and getting the Aadhar linked with the UAN, they will be opened fresh electronic PF accounts so that they can administer their own account digitally and efficiently without anyone’s help and without any risk.
Reduction of burden of work on PF department employees
In the past, there were thousands of instances of backlogs in work in the Provident Fund department. In case of premature withdrawals, the employees had to wait nearly 1 month to withdraw funds from their own PF accounts. In case of retirement of employees and final withdrawal of fund from the PF account, the average time take was around three months. The main reason for this inefficiency and work backlog was due to the reason that every entry or procedure was one hand written and manually. The database of the employees and also the PF account matters were not organized at all. After starting the digitization process of the PF system, there has been a major reduction of burden of work for the employees of PF dept. At present, the work flow is efficient, transparent, smooth and error free.
Aadhar card to be the primary KYC document for EPFO registration process
The process of converting the PF account to single electronic PF accounts under the EPFO scheme has already been started. Unique UAN are provided and linked with the EPF accounts of the employees. As per records of the PEF officials, an estimated number of more than 6.7 crore such account have been tagged with UANs. Now, another step for employee authentication is to upload and authenticate the KYC details of the employees. The Govt. has made it mandatory for the account holders to provide Aadhar card as the primary KYC document. To make the entire system transparent and free from any anomalies, Aadhar authentication is must. Aadhar contains biometric details and several other important and unique details of the Aadhar card holder.
What are the other KYC documents needed for EPF registration?
The Aadhar card is the most important and primary KYC document needed for the procedure to get registered under the EPFO scheme. The other KYC documents needed are PAN card which is very important for monetary transactions as well as taxation purposes. A valid bank account details is also required in form of bank account number and pass book details. There will be direct transaction from the EPF account to the registered bank account. Along with these KYC documents, one must also provide a mobile number to get updates of the EPF account via SMS and emails.
Benefit of PF, insurance and pension in one consolidated EPF account
After the successful consolidation of a single EPF account, the beneficiaries will enjoy multiple benefits from the single account. Apart from the provident fund services given by the EPFO, the members will also have insurance benefits like insurance policy maintenance, insurance fee payment, insurance claim receipt, etc through a single EPF account. Also in case of pensions, no separate pension accounts are required to be created. One account will serve all purposes.
Software launch for consolidation of the accounts and their monitoring
A dedicated software for performing this entire task of consolidating the multiple PF accounts has been launched. In this software a member can check the development work in the consolidation process of accounts. This software will help uploading the details of UAN and earlier PF accounts. Then these details will be forwarded to the EPFO office for further course of work. Another software has also been launched which will be used to keep track of the follow up actions of the EPFO officials.
|Sl. No.||Attributes||Related Data|
|1||Name of mission||One Employee – One Account|
|2||Date of launch||1st may, 2016|
|3||Eve of launch||International Labour’s day|
|4||Governing authority||Ministry of Labour and Employment|
|5||Total no. UAN issued till now||6,77,16,584|
|6||Primary KYC document||Aadhar Card, PAN card, Bank pass book|
|7||Total No. of Aadhar links done||1.30 crore|
|8||Software for EPFO work development tracking||EPFO e-Samiksha|
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