Employee Provident Fund is a retirement scheme for employees. In this, the employees of a company or organization put up a small portion of their monthly salary. The employer of the company or organization also contributes a small portion toward the employee’s EPF account.
This scheme is to help the employees during the time of their retirement. Under special circumstances, the employees may withdraw a part of this account before retirement.
REGISTRATION UNDER EPF-
All the organizations that have 20 or more employees are required to register under the Employee Provident Fund Organization. Both the employees and the employer are to contribute 12% towards the EPF accounts. Each account holder then gets a unique Universal Account number (UNA) or easy access to their accounts.
The government then collects the amount from such funds and invests it in different places. The interests generated from such investments are deposited into the employee’s account.
NEW UPDATE BY THE EPFO-
On 1st June 2021, the EPF organization announced that it is now a necessity to link the UAN of the account holder with their Aadhar cards.
- Changes have been made in the Social Security Code 2020, Section 142. Due to this update, the Electronic Challan cum Return (ECR) filing protocol has also been altered.
- In the new update announced on 1st June 2021, the EPFO said that an employer will be able to file an ECR of those employees whose UAN is linked to their Aadhar cards.
- For employees who have not linked their UAN to their Aadhar cards, they need to file their ECR separately.
- But they need to link their UAN to their Aadhar cards as early as possible.
- If any UAN is not linked to their respective Aadhar cards, the employer’s contribution will not be credited to the employee’s EPF account.
STEPS TO LINK UAN TO THE AADHAR CARDS-
- Visit the official EPFO page and log in with your details.
- Click on the online service – e-KYC Portal and then link to UAN Aadhar card.
- Submit the UAN number and the mobile number that is registered with the UAN account.
- An OTP will be generated to the registered mobile number.
- Submit the OTP and enter the 12 digit Aadhar
- Submit the form and click on the Proposed to OTP verification option.
- Verify your Aadhar details with the OTP generated in the mobile number or on the link received in the mail.
- After the process, the Aadhar card will be successfully linked to the EPF account.