What is UAN?

UAN full form is Universal Account Number which is basically an employee identification under the Employees’ Provident Fund. It has been introduced to consolidate all matters relating to PF of an employee on the Unified Portal. Earlier, employees who had contributed to PF used to be provided with a member id by the employer. Thus, many employees had various member ID when they worked with multiple employers. The concept of Universal Account Number (UAN) was introduced by the EPF just to consolidate the member id and uniquely identify an employee. To avail the benefits of UAN, one has to go through the UAN registration.

UAN Registration and the role of UAN in EPF

Those employers who are having 20 or more employees are required to obtain EPF registration and enroll employees with wages of up to Rs. 15,000 under the Employee’s Provident Fund Scheme. Whereas, those employers who are having less than 20 employees can also register for PF voluntarily.

As soon as, an employer is registered under PF, all employees in the business with wages of up to Rs.15,000 are required to join the Employee Provident Fund and make contributions each month from their salary. Both the employer and the employee would contribute 12% of the wages earned.

At the time of deductions made by an employer from the wages, a UAN is provided by the employer to the employee. Then, the amount deducted is deposited by the employer while quoting the UAN of the employee. As a result of this, the employee can then withdraw the money accumulated in the PF account along with interest on retirement, resignation, death.

There is also an option of partial withdrawals of money in the PF account is also permitted for financing life insurance policies, acquiring house or land, a marriage of self or dependents, treatment of illness, education of children, etc.

Document Required for UAN registration

Following are the documents that the employee must submit to his/her employer:

  1. Bank Details with IFSC Code
  2. PAN
  3. Aadhar
  4. Passport (Optional)
  5. Drivers License (Optional)
  6. Voters Identity (Optional)
  7. Ration Card (Optional)
  8. National Population Registry (Optional)

Further, for obtaining UAN, the employee must submit the following information to his/her employer:


Online Procedure for UAN registration

Following are the steps that need to be followed:

STEP 1.

First of all, the employer must log in to the EPFO employer portal or Unified Portal for employers. Then, click on “REGISTER-INDIVIDUAL” under the menu tab “Member” for the registration of member for UAN generation or linking.

STEP 2.

Now, the employer must upload the employee’s information for whom the UAN is being generated. Remember, the employer must submit the information as per the list provided.

STEP 3.

The entire information of UAN Registration submitted in the above screen will be under the approval section. Here, the employer must now access the approval section as provided below:

STEP 4.

The employer can view the details of employees that have been uploaded, edit, approve or reject in the approval screen. Give a click on approve to continue.

STEP 5.

As soon as the submission is approved, UAN will be generated for the employee on the employers EPFO portal which you can see below. Now, the employer is free to make contributions on behalf of the employer and employee by filing Electronic Challan cum Return. Most importantly, the employee would use the same UAN for the rest of his employment with any employers.

Conditions for the contribution of Employees Provident Fund (EPF)

Members who are having a UAN is required to make contributions to the provident fund from his/her wages. There is a maximum limit of Rs. 15000/- wages for the contribution of EPF. Normally, the contribution is 12% of the wages earned. The employee is free to pay at a higher rate and the employer is not under any obligation to pay at such a higher rate. In a case of contribution on higher wages, a joint request from employee and employer is to be made on the unified portal.

There are certain business entities where EPF has notified a lower EPF contribution rate of 10%. Those entities are given below:

  • Any business entity in which less than 20 employees are employed.
  • Any business entity who is sick and which has been declared as such by the Board for Industrial and Financial Reconstruction.
  • Any business entity which has at the end of any financial year, accumulated losses equal to or exceeding its entire net worth.
  • Any business entity related to the following industries:-
    • Jute
    • Beedi
    • Brick
    • Coir
    • Guar gum Factories.

Conditions for the contributions for Employees Pension Scheme (EPS)

Under the Employees Pension Scheme, the employer is liable to contribute only 8.33% for his share of PF and no contribution is payable by the employee. Besides, when the employee crosses 58 years of age then the employer is not required to make EPS contributions as per the EPS membership conditions. Read more: National Pension Scheme

But in both the situation, the Pension contribution @8.33% is to be added to the Employer share of PF. (Pension contribution is not to be diverted and total employer share goes to the PF). When an existing EPF/EP member joins on or after 01-09-2014 with wages above Rs 15000/-  then the pension contribution part will be added to employee share, EPF.

Conditions for the contributions to Employees Deposit Linked Insurance Scheme (EDLI)

There is a contribution to EDLI at 0.5% is to be paid on up to a maximum wage ceiling of 15000/-. In addition, this contribution must be paid even if a member has crossed 58 years age and pension contribution is not payable. Therefore, EDLI contributions must be paid as long as the member is in service and PF is being paid.

For more details regarding UAN Activation, and UAN Member Portal must follow our blog. We here at LegalRaasta excel in company incorporation, EPF registration, and ESI registration. So hurry up and give us a call at 8750008585 and send your query on Email: [email protected]

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