Provident Fund Portability: 10 Things to Know
Prime Minister Narendra Modi on October 16 launched provident fund portability through the Universal Account Number (UAN). This new facility will help over 4 crore subscribers to transfer the funds lying in their provident fund accounts when they change jobs.
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Prime Minister Narendra Modi on October 16 launched provident fund portability through the Universal Account Number (UAN). This new facility will help over 4 crore subscribers to transfer the funds lying in their provident fund accounts when they change jobs.
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The Universal Account Number is the key to provident fund portability and easier PF transfer. The UAN will be portable throughout the working career of employees and can be used anywhere in India. Till now, every time employees changed jobs, they had to change their provident fund accounts.
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This Universal Account Number will be linked to employees' provident fund accounts. Employees would not be issued a new provident fund account number on joining a new firm. Instead, they would get a member identification number which would be linked to the UAN. This will help in smoothening out the process of provident fund transfers on changing jobs.
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Universal account number has long been a pending demand of even employers. It is expected that the operationalision of allotment and deployment of the UAN will substantially lower the cost of compliance and save the employer from verification of various claims made by employee to EPFO.
