What Is the Meaning Of EPFO & Its Significance

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''s endeavor is to make the retirement of employees secure and to offer them well-deserved relaxation. Now, in this blog, let''s move ahead and understand further details about each one of them by sharing the detailed, step-by-step process of all important processes under EPFO''s PF scheme.

We will be discussing the following topics:

• 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

What is EPFO?

The EPFO is a non-constitutional body set up to save some part of employees'' income for their retirement. This organization comes under the Ministry of Labor and Employment, Government of India.

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

Do they have to walk in and out of government offices or fill in some forms online?

It''s the employer''s responsibility to ensure that their employees open an EPF account. Especially when there is a new joiner, HR professionals have to ensure information about the EPF scheme and that employees'' deduction has been recurrent each month, and then create a new one or continue with an existing EPF account.

P.S. The payroll processing would be error-free in the scenario when the deduction of EPF is informed priorly and mentioned in the CTC break-up of the new joiner. It will not only boost the experience of employees but will increase confidence when their salary is disbursed without 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 EPF''s account for their employees, EPFO allots a UAN, which is a Universal Account Number, to the employee. The UAN account is consistent for the employee throughout his/her working life experiences and is transferable upon the changing of an organization.

This means that once the payroll is disbursed, every month, an employee''s UAN account will be automatically credited with his/her EPF scheme fund. This will reflect in their pay slips, and a ""message for credited amount"" will reach employees'' linked mobile number.

Your employees'' UAN account, like their bank account, is accessible at their fingertips with the UMANG app or online through the UAN portal.

This app caters to both Android users and iOS users. The UMANG app enables services regarding the EPF account. In addition, the EPF passbook checks the account balance for the employee. The UMANG app keeps the employee updated on one''s account funds.

They can avail themselves of various services in relation to their UAN account with just a few clicks: change or reset their password in case they are unable to log in, update the change in bank details to transfer the amount from one UAN to the bank account, and last but not the least, withdraw funds whenever they are in need of money from their UAN account.

Conclusion

In a nutshell, it is recommended that you empower your employees with information on their retirement fund and EPFO''s PF or UAN account. Creating an employee-centric workplace means that it''s your foremost responsibility to remain motivated by informing them about benefits, disbursing error-free payouts on time, and taking care of their experience.