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LATEST NEWS UPDATES | UID set to replace PF account number

UID set to replace PF account number

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published Published on Jan 4, 2011   modified Modified on Jan 4, 2011

Once the unique identification (UID) project is fully launched, it will also serve as the number to track PF accounts of individuals. Most importantly , this number will not only help in online checking of the status of the account but also to ensure a smooth transfer once a person changes jobs.

Labour secretary P C Chaturvedi says this will happen in the second phase of digitization of EPFO but the ministry is not looking at a particular deadline right now as it is dependent on the progress of the UID project. The first phase, which entails digitization of data in its regional offices, will be completed in March 2011 after which work on interconnecting the regional offices will start.

"Using the UID to track PF accounts can happen effectively only after offices are linked. But it is not possible to say now what deadline we are looking at when we talk of assigning the UID to PF accounts because that would require the UID project to be completed first," Chaturvedi told TOI. Officials say the interlinking of offices may be wrapped up by next year and once UID comes, there would also be facilities for online applications of transfer.

The present system often takes months for the PF amount to be transferred from one organization to another , causing many people to withdraw it altogether and start a new account after changing job. By using UID as a single number to track these accounts, the ministry hopes to reduce withdrawals too.

In a pilot study conducted at EPFO's Karnal office, it was found that over 30.2% of subscribers withdraw their PF within a year of joining service while 54.3% do so by the end of the second year. EPFO has a subscribers' base of about 4.7 crore and processes over 60 lakh claims every year. It manages about Rs 3 lakh crore of funds and receives an incremental deposit of over Rs 25,000 crore every year.

Tracking savings

In the present system, it takes months to transfer the PF amount from one organization to another This causes many to withdraw the amount and start a new account after changing jobs A pilot study found that over 30.2% of subscribers withdraw their PF within a year of joining service while 54.3% do so by the end of the second year.


The Times of India, 4 January, 2011, http://timesofindia.indiatimes.com/business/india-business/Unique-ID-set-to-replace-PF-account-number/articleshow/7214002.cms


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