The rules of the universal account number are going to change. EPFO is working on the next version of UAN. The new version of UAN would have strict rules. The new rules of UAN would resolve many problems of EPF members. The EPFO is working hard to streamline the EPF scheme. Crores of employees are facing difficulties because of the EPF anomalies. The new version of UAN would try to weed out the anomaly of the present UAN system.
Objective of UAN 2.0
The new rules of UAN are focused to reduce the personal detail mismatch. The error is employee details is the biggest hurdle of EPF transfer and withdrawal. The employee can’t transfer or withdraw EPF balance because of the error in name, Date of birth or father’s name. The EPFO does not process the EPF transfer or withdrawal application if there is any anomaly in the personal details of the employee. The EPFO sticks to strict rules to avoid any fraud.
But, this anomaly in the personal details turns into a big headache for the employee. As a previous employer rarely cooperates in rectification of personal details of EPF. Therefore, EPFO wants to rule out such discrepancy in the beginning of the employment.
New Rules of UAN 2.0
Without UAN, No Contribution
According to new rules, the EPFO would not accept any contribution without the UAN. The UAN would be mandatory in the ECR. ECR is the Electronic challan-cum-return receipt. It is used to deposit contribution of an employee.
The employer has to generate the UAN for the first time members of EPF scheme. Presently, the employer generates the UAN after the submission of the first contribution. Many employers don’t generate UAN even after many contributions.
If an existing EPF member joins the new employment, the new employer must use the existing UAN of the employee. This UAN should be used in the ECR. This way the existing UAN gets linked to the new EPF account.
Take Personal Detail from the KYC document
The employers have to refer the KYC documents for personal details of an employee. The name, father’s name, date of birth and bank account number should be the exactly same as given in the KYC. the voter ID, Adhaar, driving license, Bank passbook, PAN card and photo ration card is accepted as the KYC documents.
Online Generation and Linking of UAN
As contribution is not necessary for the generation of UAN, the UAN generation and linking process would be easy. It can be done by login at UAN portal. Through this portal, one can also link the new PF account with the existing UAN.
Validation of UAN
UAN of the new member would be validated once an employer includes it in the ECR. Only after the validation, the EPFO would accept the contribution of an employee.
Linking Necessary of Existing Member
If an employer recruits an existing EPF member, It has to link the new PF account with the existing UAN. There is no relaxation.
The new employer must take the name, father’s name, date of birth from the database of existing UAN. The personal details of the UAN and ECR must match.
Strict Message To Employer
The EPFO has given a strict message to employers regarding UAN. After 15/11/2016, It will not accept any contribution without the UAN. Thus employer has to clear all the pending allotment of UAN. There would not be any active member without the UAN.
What is UAN
UAN is a number given to each EPF members. This number does not change with the change of job. It remains same throughout the life. All the EPF account number gets linked to the UAN.
To enjoy the various facilities, you have to activate the UAN.