Employment Provident Fund 2022 Details

EPFO

  The Employees’ Provident Fund Organization (EPFO) has issued around 41.7 million Universal Account Numbers (UANs). Also, the EPFO is expected to launch its scheme on making Provident Fund numbers portable on 23rd,September 2014.

So, it is advisable to know – What is UAN? How to activate UAN registration? What is the procedure to update KYC on UAN? What are the facilities available on UAN member portal?

What is Universal Account Number?

UAN is a unique identification number issued by EPFO to its members. A universal number is generated for each of the PF (Provident Fund) Account Number at EPFO. This UAN will act as an umbrella for the multiple ‘Member Ids’ allotted to the same individual (Employee or EPF Account holder).

What are Member-IDs ?

• Let’s say you have been working for Infosys for the last 2 years. You might be contributing to EPF through your EPF A/C. EPFO treats Infosys as an ‘Establishment’ and ‘You’ as a ‘Member’ of EPFO. Since you are a member of EPFO, Infosys would have created a ‘Member-Id’ through which you contribute to your  EPF a/c. So, Member-ID is nothing but your EPF a/c number.

• EPFO will generate ‘UAN’ and shares it with Infosys. You have to collect UAN from your employer. Your existing member-id will be linked with your UAN.

• Next year, if you shift to a different company then UAN remains the same. But, your new company will provide another ‘Member Id.’ This is linked to your UAN. You just need to disclose your UAN/previous member-id to the new employer through Form-11. Like this, UAN will act as an umbrella for the multiple ‘Member Ids’ allotted to the same individual.

What is the current EPF interest rate?

EPFO decides on the interest rate to be provided to EPF funds on yearly basis. The rate of interest depends on the market condition and is vetted by the Finance Ministry of the Central Government.

The current EPF interest rate for the Financial Year 2022-23 is 8.10%. Moreover, the interest is calculated monthly but transferred to the Employee Provident Fund account only on 31st March of the applicable financial year.

Tax-saving 

Under Section 80C of the Indian Income Tax Act, an employee's contribution towards their PF account is deemed eligible for tax exemption. Moreover, earnings generated through EPF schemes are exempted from taxes. Such exemption can be availed up to a limit of Rs. 1.5 Lakh.