There are some things that every fresher in Bangalore needs to have information about regarding Provident Fund(PF) before joining a company as it shall come handy someday during your work or after you leave your job. For the entire fresher around the world, there exists something called Provident Fund, a government scheme in which all the workers working in a company must contribute a portion of their salaries whereas their respective employers must contribute on behalf of these workers. Whenever an employee takes retirement from an organization, the PF shall work as a backup plan in providing them with lump sum payments that can be used for future purposes.
When you get your first offer letter and before your first day on the job, it is the duty of your company to call and explain to you about all of the company’s related policies and also to make you sign in all the documents related to it. Among all these documents, one of the documents is the PF form where you are made to sign on it. By signing on the PF form, you will be bound to get PF benefits in your PF account so long as you are going to keep on working for a company or the other. What most people don’t realize is the fact that they can even opt out from this PF scheme. In doing so, rather than deducting the PF money from your salary slip, the PF amount now shall be credited directly to your bank account.
As the PF Number and the EST (Employee’s State Insurance) Number for all the fresher employees are applied by the employer of the company, it takes exactly 1 month for the company to generate the PF number and the ESI Number for all their newly joined employees. Both the PF Number and the ESI Number of an employee differs from company to company. One thing that does not change is the UAN (Universal Account Number) which is generated for each individual holding a PF Account Number at EPFO. It takes approximately six to seven months for the EPFO to generate the UAN number for any newly joined employee. Once generated, even if an employee decides to leave the company where he was currently employed to and ends up joining some other company, unlike the PF Number, the UAN of that employee will not change as it is directly linked with the employee’s PAN Number and Aadhar Number.
After the generation of UAN Number, always give priority in activating your UAN. You can activate your UAN by following this link:
After activating your UAN, you will receive a password in your registered mobile number. With the help of this password, you will be able to login to the UAN portal and avail various services related to it. To log in to the UAN portal, just visit this link:
Due to persistent EPFO server issues, it might take more than a day or two for you to activate your UAN. In the worst case, it might take a week as well so better be quick to activate it. Activation of UAN is just the beginning of your problems. In the UAN Portal, there is a section called KYC Information where your employer needs to verify your PAN Number, Aadhar Number and Bank Details of your Salary Account. Without these fields being verified by your employer, you will never be able to apply for online PF withdrawal in future. In most of the cases, even after the generation of an employee’s UAN , the employer of the company does not bother to verify these details for the employee, leaving that guy completely helpless and clueless in this corporate world.
If you happen to be an employee going through the similar problem, don’t worry as I have a solution to this problem of yours. If your employer does not verify your KYC details that you have updated in your UAN portal, you have the option to manually do it by going to the EPFO office where your PF account is maintained. Just don’t forget to take your PAN Card, Aadhar Card and the bank statement of your salary account with you when you go to visit the EPFO office. In order to know the EPFO office where your PF account is maintained, just download your Passbook by visiting this link:
In your Member’s Passbook, you can see your PF balance which is named as Employee Share. The total amount contributed by your employer to your PF account is divided into two portions where 30% of it goes to the Employer Share and the remaining 70% is moved to the Pension Contribution. For example, if the PF amount deducted from your salary slip is IRS.425, then in your Member’s Passbook, it will show Employee Share as IRS.425, Employer Share(30% of IRS.425) as IRS.130 and Pension Contribution(70% of IRS.425) as IRS.295.The sum of Employer Share(IRS.130) and Pension Contribution(IRS.295) will be equal to Employee Share(IRS.425).
As for the PF withdrawal, it consists of mainly two parts. Let us name the first part as Partial PF Withdrawl and the other one as Full PF Withdrawl. Partial PF Withdrawl is applicable for those who have either left their previous job without informing their employer about it or in case you are in need of some money either for the purpose of paying your house rent or for going on a vacation or for some other reason. No matter what the case, partial PF withdrawal allows you to withdraw money from your Employee Share Portion only. Any employee who is currently working in a company has the option to do partial PF withdrawal.
Full PF withdrawal includes the withdrawal of all your money maintained in your PF account which includes the cash from Employee Share, Employer Share, and Pension Contribution. Only those employees who have completed years of their service or have retired, also including those who have left their job with the consent of their employer and by completing their probation period in return can take the advantage of Full PF withdrawal.
In case you have left your previous job and joined some other company and you don’t feel like withdrawing your PF money right now, you are still left with the alternative to merging your old PF account created by your old company with the new PF account created by your new company. It has all been made possible because of the UAN which allows you to merge multiple PF accounts into one singular account. In order to do so, all you need to do is make use of the Transfer Claim option present in your UAN portal which lets you with the continuation of your previously created PF account with the new ones.
Another way to withdraw your PF money from your PF account is to do it manually. Before you do that, you need to understand about Composite Claim Forms (Aadhar/Non-Aadhar Based) which you can get in any EPFO office. If you have already seeded your PAN Number, Aadhar Number and bank details with your UAN and also successfully verified it either with the online approval from your previous employer or through submission of your PAN Number, Aadhar Number and bank details of your salary account to your EPFO office where your PF account is maintained, if such is the case, you can directly go for Aadhar Based Claim Form which requires only your signature on it .If this is not the case, you have got no choice but to go with Non-Aadhar Based Claim Form which requires you to get the seal and signature of your previous employer.
In order to defeat something, you need to have knowledge about that thing that you are desperately trying to win over. As long as you are an employee of a company, you have got nothing to worry about. When you leave your job without informing your previous employer and go after another company by looking at all the good salary and better treatment that this new company is offering to their newly joined employees, there is no doubt that the problem that you will be facing in your future is going to be related to your past, that problem being none other than that of the Provident Fund. I hope my article will be useful in helping you to know better what you are currently dealing with and furthermore, guide you to take the right steps so that you would not have to face any more problems concerning PF like I did in the nearing peak of your career.