The UAN is a Universal Account Number with is a 12-digit pin prearranged to each member of Employee Provident Fund, EPF. The number if issued by the Ministry of Labour and Employment, Government of India. The number lets the employee connect his PF across organisations.
The UAN has enabled smooth functioning and easy tracking of the PF for EPFO as well as the account holders. It helps the EPFO to track the changes in jobs for every employee. On a change of the job, the employee can link a new PF account with the UAN number.
Thus, the EPFO can keep track of updated information of where the person is currently employed. Further, the UAN allows people to make excessive EPF withdrawals on switching jobs. Let us consider the benefits in detail:
The UAN number is a huge benefit for the employees for a number of reasons. There is no interference of employer in PF withdrawals. Further, there is no need to transfer funds while changing jobs.
SMS alerts make it easy to manage the fund's account. The UAN number lastly enhances the effectiveness of employee pension scheme and benefits the employee in regards to taxes and future savings.