Below is discussed some of UAN number advantages. Read along!
Hassle-free Transfer of Funds
Previously, a manual transfer from old PF accounts to the new ones was time-consuming and was full of errors. Even the introduction of a digital process did not ease this process significantly.
However, after UAN implementation, employers can successfully transfer funds by submitting UAN and KYC details to the new employer. Once the employer verifies all data, PF transactions from the old account to the new one can be completed hassle-freely.
Minimal Employer Involvement in PF Withdrawal
Before UAN was introduced, PF withdrawal was dependent on employers as the application was sent to the previous employer for signature, and then it was sent to EPFO.
However, in the case of UAN, this dependency has been reduced. The PF amount from the old account to the new is transferred automatically once the KYC verification is completed.
Streamlined Transactions With Mobile Notification
One of the UAN number benefits is that it ensures streamlined transactions and additional security. As with every activity in the PF account, i.e., withdrawal and monthly employer’s contribution can be received via SMS. In addition, individuals can check account balances through UAN. For this, they have to download the PF passbook from the EPF website.
Benefit for the Employee Pension Scheme
Before implementing UAN, employees had to withdraw from the Employee Pension Scheme, which affected the amount at the retirement.
However, with UAN, both the Employee Pension Scheme and Employers Provident Fund account balances are automatically transferred to the new account, increasing the amount at the retirement.
Till now, we have discussed what UAN number is and its benefits. Now, let’s see how one can generate it.