UAN to be made mandatory for any EPF settlements

The Employees Provident Fund Organisation (EPFO) is likely to make Universal Account Number (UAN) compulsory for any EPF -related settlements.

"We may take the step within a couple of months," a senior EPFO official said on the condition of anonymity.

The UAN is a 12-digit 'portable' number allotted to each member which gives them control of their EPF account and minimises the role of employer in matters related to a member's account.

The EPFO has allotted around 4.2 crore universal account numbers to the members through their employers. The numbers were to be issued to employees by the employers on furnishing of know-your-customer (KYC) details.

However, it seems not all employees have received the UAN. "Once we make it mandatory for any EPF-related settlements, the members would themselves take the initiative and get it issued by employers or get them through our website," the EPFO official said.

Meanwhile, when asked about the Budget proposal to give employees the option to choose between EPF and the National Pension System (NPS), the official said that the government has not informed the EPFO about the decision, and it is not yet clear what the process would be for a member to shift from EPF to NPS.

"As and when instructions come from the government, we will facilitate the process," he said. However, he feels that NPS may be a substitute for EPF, but it cannot be a substitute for Employee Pension Scheme (EPS) and Employees' Deposit Linked Insurance Scheme (EDLI). "NPS does not provide social security, as EPF does," he said.

The Union budget this year gave a major boost to the National Pension System by allowing additional tax deduction of Rs 50,000 over and above the Rs 1.5 lakh under Section 80 C and 80CCD. Besides, it also allows employees to choose between EPF and NPS.