What Is the Meaning Of EPFO & Its Importance

Duration: 5-7 minutes 

The Employee Provident Fund Organization (EPFO) is a statutory body that helps the Central Board in governing the contributory Provident Fund Scheme, Pension Scheme, and Insurance Scheme for the workforce deployed in the organized sector of India.

EPFO strives to make retirement of employees secure and offer them the well-deserved relaxation. In this blog, we will explore more about EPFO and share with you the step-by-step processes related to important processes of EPFO’s PF scheme.

Table of Content

• What is EPFO?
• Step-by-Step Process of:
  • How to Change Password in EPFO
  • How to Update Bank Details in EPFO
  • How to Withdraw Money from EPFO
• Conclusion

What is EPFO?

The Employee’s Provident Fund Organisation (EPFO) is a non-constitutional body to empower employees by saving a certain portion of their income for their retirement. This organisation comes under the Ministry of Labour and Employment, Govt. Of India.

So how can your employees save their funds for retirement under EPFO?

Would they have to walk-in and out in government offices or fill in some forms online?

None of the above!

It’s the employer’s responsibility to make sure their employees opt for an EPF account. Especially, when a new joiner is onboard, it’s HR professionals who make sure to inform about the EPF scheme, employees’ recurring deduction of each month, and then either create new or continue with the existing EPF account of the new joiner.

P.S. The payroll processing would be error-free if the deduction of EPF is priorly informed and mentioned in the CTC breakup of the new joiner. It won’t only boost the experience of employees but increase confidence when their salary is disbursed without any errors.

Step-by-Step Processes Related to EPF/UAN Account

Did you think—how would employees save the funds? Where will these saved funds be deposited?

When an organization applies for an EPF account for their employees, EPFO allots them a UAN or Universal Account Number unique to every employee which is similar to a bank account number. This UAN would be transferable when an employee switches their organization.

Every month when the payroll is disbursed, funds for the EPF scheme will be automatically credited to the UAN account of the employee and will be reflected in their pay slips as well as a “message for credited amount” will be sent to the employee’s linked mobile number.

UMANG App for EPF Services

Just like their bank account, your employees can access their UAN account on fingertips with the UMANG app or online on the UAN portal.

The UMANG app can be downloaded by both Android and iOS users to access services related to the EPF account. Along with the EPF passbook to check the account’s balance, the UMANG app keeps employees updated with their account’s fund.

Employees can also enjoy several services related to their UAN account in a few clicks like changing or resetting the password when they are unable to log in, updating and changing bank details to transfer the amount from UAN to their bank account, and finally, the most important one—withdraw their funds as and when they need them from the UAN account.

Conclusion

To sum up, you are advised to empower your employees about their retirement’s fund and EPFO’s PF or UAN account. Creating an employee-centric workplace, it’s your foremost responsibility to keep them motivated by informing them of their benefits, disbursing error-free payouts on time, and taking care of their experience.