How to Resolve Missing EPF Contributions from a Previous Employer in Your UAN Account?

Hi, I have a unique problem. One of our employees used to work in an organization in 2017 where his EPF was deducted regularly, and he was allotted a PF number.

He then worked from 2018 to 2020 in another company where his PF was deducted based on the UAN number allotted to him. According to him, this UAN number was given to this establishment when he joined in 2018.

Now, he checked his EPF balance using his UAN number and found that all deductions made for the company in which he worked from 2018 to 2020 and his current company (with us) were reflecting but not of the company where he worked in 2017. I have two questions:

a) What should he do so that his EPF deducted in 2017 from his second last company reflects in his current UAN account?

b) There is a mention of a PF account on his salary slip of 2017 which looks like a UAN number but is different from the UAN number he has submitted to us. Can he migrate or merge that UAN account with his current UAN number? Can a person have two UAN numbers?

Please guide.

Regards, Anuradha

Hi Anuradha,

Your employee seems to have encountered a common issue related to Employee Provident Fund (EPF) accounts and Universal Account Numbers (UANs). Let's address your questions:

Contact the Previous Employer (2017):
He should get in touch with his previous employer (the company he worked at in 2017) and ask for details about his EPF account, including the EPF number. He should also confirm if a UAN was generated for him during his tenure in that company.

Request for UAN Transfer:
If a UAN was generated in 2017, he can request a UAN transfer. This process allows the consolidation of multiple EPF accounts under one UAN. He can initiate the transfer online through the UAN portal or by submitting a physical transfer request through his current employer.

Verify the Status of Transfer:
After initiating the transfer, he should regularly check the UAN portal to verify if the transfer has been completed.

Regarding Having Two UANs:
Ideally, a person should have only one UAN throughout their career. Having multiple UANs can lead to complications. If your employee has a UAN from his previous employment in 2017 and a different UAN from 2018 onwards, he should get them merged. To merge the UANs, he should follow the process outlined in step 2 above.

It's crucial to ensure that all the details provided are accurate and match the records with the EPFO (Employees' Provident Fund Organisation). Additionally, it's recommended to consult with the EPF authorities or a financial advisor for specific guidance based on the employee's situation.

Regards,

Thank you so much, Sir. I learned from the employee that his earlier company, where he worked in 2020, started making his contribution one year after he joined the company. Now, when he left his second last company in 2017 and joined his last company in 2018, there was no PF contribution being made in his last company.

My questions are:

1) If PF contribution is not done for a specified period and a person is still in employment, does he have to close the EPF account?

2) If he closes the EPF account, will he not lose out on his pension contributions made?

Please guide.

I understand the situation like:

1. One employee joined an establishment in 2017 and worked there for one year. Obviously, he should have had a UAN generated by the first employer.

2. When he joined the second company in 2018, he did not provide the UAN, so that company generated a separate (new) UAN for him and started contributing to that account.

3. He left that company and joined another company, which did not provide him with PF for one year (a non-compliance) and started contributing to PF with the same UAN.

Up to this portion, it is okay, but the following statement is not clear to me:

"Now when he left his second last company in 2017 and joined his last company in 2018, there was no PF contribution being made in his last company."

Now, coming back to the issue, if you have two UANs, you can merge them by visiting the member portal itself. Once they are merged, the service and the amount contributed by the first company since 2017 will get transferred to the current company account.

It is not possible to close the PF while the employee is in service. Again, your questions:

"My question is that
1) If PF contribution is not done for a specified period and a person is still in employment, then in that case does he have to close the EPF account?
2) If he closes the EPF account, will he not lose out on his pension contributions made?"

1. If contributions are not made, why should we close it? What is the objective of closing it?

2. Closing the PF account is possible only after leaving the job and after waiting for 2 months. But if the total service is less than 10 years (less than 9 years and six months), then he can withdraw the pension amounts contributed by the employer. By doing so, his service will become interrupted, and if he joins another company, he may not get pension benefits.

Hi Anuradha,

Greetings for the day to you. If a person's Provident Fund (PF) contributions are not made for a specified period while they are still employed, it could be due to various reasons such as an administrative oversight or a mistake by the employer. In such a case, it's important for the individual to address this issue promptly.

Closing the EPF Account:

If PF contributions are not being made, it does not necessarily mean that the individual has to close their EPF account. However, they should take steps to rectify the situation. This may involve communicating with the employer, the human resources department, or the concerned PF authority to ensure that the contributions are resumed.

Impact on Pension Contribution:

If an individual chooses to close their EPF account, they may still be eligible for the pension benefit. The pension contribution, also known as the Employee Pension Scheme (EPS), is a separate component of the EPF scheme. It is based on a formula that takes into account the years of service and the average salary.

When an EPF account is closed, the contributions made to the EPF and EPS accounts are settled. This means the individual will receive the accumulated balance in both accounts. However, the pension benefit will not be affected as long as the individual has completed a minimum of 10 years of service.

If the individual has not completed 10 years of service, they may not be eligible for a monthly pension but will still receive a lump sum amount for their EPS contributions.

Hope this is clear to you.

Regards,

Considerations for Closing PF and PS Accounts

If the PF and PS are closed now, and then if he joins another organization, he may not get pension benefits. I have said so because if his salary is above Rs 15,000, then he can be a member of PF BUT he CANNOT be a member of the Pension Fund. Therefore, the decision to close a Pension Fund account should be taken wisely, as a wrong decision may lead to future benefits being lost in terms of pension.