EPFO to receive your PF contributions only if UAN is linked to current employer

EPFO to receive your PF contributions only if UAN is linked to current employer

The Employees' Provident Fund Organisation (EPFO) is devising ways to make your fund transfers and withdrawals as seamless as it can be.

It is bringing in a few changes in the way the Universal Account Number (UAN) functions and also in the reporting platform (ECR or Electronic Challan cum Return) of the employers, by which they communicate with the EPFO regarding employees' contributions, wages, etc.

The new version, UAN 2.0, is being introduced and simultaneously the EPFO is also launching ECR 2.0.
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The existing ECR portal of the EPFO will be operational till 6.00 p.m. on December 17, 2016, and to carry out the migration and switchover to the next version of ECR under the unified portal, the revised portal will be launched three days later, on December 20.

In a nutshell, any ECR that the employer sends to the EPFO will now have to include the newly generated UAN of the new member, or the linked UAN in case it has been already been generated for the employee.

The present system
Currently, most employers straightaway submit the ECR to the EPFO, mentioning the details of the employee. Thereafter, the employer generates the UAN by mentioning the member ID or by linking the earlier generated UAN.

For a new EPF member, first generate UAN
From now on, for a member joining the EPF for the first time, the UAN will be obtained by the employer or member prior to the filing of ECR by the employer for that member. The UAN will be allotted upfront on the portal and will then be validated in the ECR file of the employer at the time of its submission.

For an existing EPF member, first link UAN
For someone who was already an EPF member earlier, the linking of the existing UAN with the present establishment should necessarily be done by the employer before filing of UAN-based ECR.

Earlier, it was done after filing of ECR based on the member ID. The concept of member ID is completely done away with and is replaced by UAN in the new versions.

How it helps
In both the cases above, whether it's for a new or existing UAN, it requires the allotment of UAN upfront and the ECR can be filed only in cases where UAN has either been allotted to member or the previous UAN has been linked to his present employer.

Launch of UAN 2.0
The UAN was launched by EPFO in 2014 with the objective to provide one umbrella number to its members for all the employments of an EPF member with different establishments. The EPFO, through a UAN, is able to provide a number of services such as updated passbook, dynamically updated UAN card, SMS services on registered mobile numbers of activated UANs, portability in case of KYC seeded UANs, etc.

To take the UAN to the next level of service delivery, the EPFO is revising the processes and integrating UAN 2.0 with ECR 2.0.

Launch of ECR 2.0
Simultaneously, the EPFO is also launching ECR 2.0. Launched in April 2012, the ECR is the online platform for filing of the returns mandatory for the employers. It is filed monthly and contains member-wise details of the wages and contributions, including basic details of the members.

Prominent changes in ECR 2.0
Among the changes are: the member ID has been discarded and the UAN will be the key field in the ECR. The uploaded name of the member will be for display only. The remittance will go against the UAN with whatever name is there in the UAN repository.

In addition, a new field for gross wages has been added. So now, in addition to the basic salary, the total monthly emoluments will also be disclosed to the EPFO.

As an employee, whether new or existing, one needs to ensure a few things. Make sure that the UAN is generated and is linked to your employer. Simply uploading the KYC documents with a valid UAN is not enough. Do ask your Accounts/HR department to confirm it.