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The universal account number (UAN) system introduced by the Employees Provident Fund Organisation (EPFO) will usher in major changes and make it easier for all concerned -- employers, employees and also the EPFO, according to KK Jalan, Central PF Commissioner.
He was interacting with employers here on Friday on UAN and other issues. He said that the UAN concept was introduced last year and employers would have to electronically feed data regarding the employees by August 25, to facilitate the introduction of UAN.
Benefits for employees “It is a win-win situation for all. UAN will facilitate easy withdrawal of PF amount by employees online, without the mediation of the employer, and the chances of fraud will be nil. Above all, in sectors where employees often change jobs, there will be a seamless transfer of funds as the account remains the same,” he said. He added that employers should also complete Aadhaarseeding and bank account seeding, wherever possible, with the UAN.
Initially, he admitted, there may be extra work for employers, but the Centre would reimburse 10 per cent of the administrative charges if they complete 80 per cent of the work by August 25.
Jalan said nearly ₹30,000 crore was lying idle in inoperative accounts as the EPFO does not have the details of the employees. “This is why it is necessary for employers to feed data regarding employees online so that we can introduce the system,” he said.
He also said digital signature was now being made mandatory for all employers. He spoke about various electronic governance initiatives introduced by the EPFO, to make it easier for employers as well as employees.
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