EPF - Employees’ Benefits & UAN Activities

What is EPF ?

The Employees’ Provident Fund (EPF) is a social security initiative by the Government of India under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It is managed by the Employees’ Provident Fund Organisation (EPFO) and provides financial security and stability to employees post-retirement.

Provident Fund (PF):

• Contribution Structure: Both employer and employee contribute 12% of Basic Salary + Dearness Allowance (DA) monthly..
• Employee's Share: Fully credited to the employee’s EPF account.
• Employer's Share: Divided as follows:
• 3.67% goes into the EPF.
• 8.33% is directed towards the Employees’ Pension Scheme (EPS).
• Interest Earnings: The accumulated amount earns interest (currently ~8.15% p.a.), compounded annually and declared by the government
• Withdrawals: Permitted under specific conditions such as:
• Retirement
• Job resignation (after 2 months of unemployment)
• Marriage or higher education of self/dependents
• Marriage or higher education of self/dependents
• Purchase or construction of a house

Employees’ Pension Scheme (EPS):

• Funded by: 8.33% of employer’s monthly contribution.
• Objective: To provide monthly pension after retirement.
• Eligibility:
• Minimum 10 years of service to qualify for pension.
• Higher benefits for service beyond 20 years.
• Family Pension: Offered to the nominee in case of the member’s demise.
• Disability Pension: Available in case of permanent disability during employment.

Employees’ Deposit Linked Insurance Scheme (EDLI):

• Coverage: Provides life insurance cover to all EPF members
• Contribution: 0.5% of monthly wages, borne by the employer (subject to a wage ceiling).
• Benefits:
• Nominee receives a lump sum insurance benefit in the event of the employee’s death.
• Maximum coverage: ₹7 lakh (as per latest EPFO notification).

Withdrawals & Advances:

Partial Withdrawals: Allowed for:

• Purchase/construction of a house
• Education or marriage of children
• Medical treatment of self/family

Final Settlement:

• Retirement (after 58 years of age)
• Resignation and unemployment for more than 2 months
• Death of the employee (nominee receives the amount)

Universal Account Number (UAN)

The Universal Account Number (UAN) is a 12-digit unique identifier issued by EPFO to each employee contributing to EPF. It remains unchanged throughout the employee’s career, even across different organizations.

• Purpose: To consolidate multiple Member IDs (PF accounts from different employers) under one umbrella.
• Issued By: EPFO via the employer during EPF registration.
• Portability: Ensures seamless transfer and access to PF accounts even during job changes.

Key UAN Activities for Employees

Employer Responsibilities Regarding UAN

Employers play a crucial role in ensuring EPF compliance and smooth employee experience:

• Generate UAN: Assign UANs for newly joined employees at the time of on boarding.
• KYC Updates: Ensure timely submission and approval of employee KYC documents in the EPFO system.
• Timely Contributions: Deposit both employer and employee EPF contributions on or before the due date every month.
• Support Requests: Address and facilitate employee queries or claims related to EPF, UAN, and pension benefits.

Why Choose VETRI AUDIT SERVICES PRIVATE LIMITED?

We offer expert guidance on EPF registration, compliance, UAN activation, and employee benefit management. Our team ensures timely filings, accurate record keeping, and smooth handling of employee welfare schemes—so you can focus on growing your business.