Once the employee joins the organisation a portion of employee’s salary goes in to savings in the form of contribution to his Provident Fund Account every month. Employer will assign a unique identification number to each employee called UAN(Universal Account Number). Employees will have the deduction towards Provident Fund from their salary every month and the same will be credited into their UAN.
Even though employees would get their own money deducted from the salary and parked in their PF account, they will face various issues and problems with their PF accounts w.r.t access to their account and withdrawals. We would like to shed some light on the various issues faced by employees with their PF accounts –
While activating UAN, employees may face error saying date of birth mismatch. This mismatch may be because of incorrect details furnished by employer while creating UAN of the employee. This error may be fixed by filing a form named “Joint Declaration by Member and The Employer” with jurisdictional EPFO addressing to the Regional PF Commissioner by furnishing self attested copies of PAN, Aadhar and Class 10 marks card for age proof. The form has to be signed by both employee and employer. Once the form is accepted by the Regional EPFO, in 15days time the date of birth will be updated in accordance with the Proof submitted.
Employees may land up in a unique situation where they my end up with duplicate UAN. This may happen due to mistake in updating employee exit date by previous employer. This can be fixed by writing an email to firstname.lastname@example.org and clearly explain the situation. The officer will deactivate old number and merge the balance with new UAN number.
Another way of fixing the issue is making a manual application to Jurisdictional regional EPFO requesting for transferring the balances from old UAN to new UAN. However these kind of problems will not happen if the Aadhar is linked to UAN.
Further online transfer can be done ( UAN to UAN) This is the same way as we do PF transfer from old PF Member ID to New PF member ID. The employee needs to logon to the new unified PF portal using his PF login credentials to initiate transfer.
It may so happen that while doing the KYC w.r.t to updating the bank details, the employee may upload the cheque without name mentioned in the cheque leaf. In this case the online Provident Fund withdrawal may be rejected. However in this situation, employee passbook can be uploaded along with the aforementioned cheque leaf. The account number in the Passbook should match with the account number mentioned in the cheque.
Withdrawal of Provident Fund may also be rejected in case where the name available as per the bank records may be different from the name available as per the PF records. This can be fixed by updating bank KYC to match the name as per PF records.
PF claim may be rejected due to incorrect bank number. There are chances that while doing the KYC bank account number would have been fed into the system without prefixing “zeros”. This may happen especially with the SBI account holders. Generally at the time of KYC 12 digit number would have been fed into the system by prefixing a zero to 11 digit account number. However SBI account numbers will generally have 17 digits. So due care needs to be taken to ensure full 17 digits are mentioned at the time of KYC.
It may so happen that your PF claim would be rejected even if your a/c number, ifsc code and your name as per bank records everything if correct. The reason may be that your bank account may be a joint account. Generally if the joint account holder is your wife and if she is a nominee, then the PF claim may not be rejected. However if the joint account holder is your brother or sister or any other person, they is a high chance of rejection of PF claim. So due care needs to be taken to ensure that the account which is linked to PF is not a joint account.
There may also be a case where an IFSC code would have been updated during KYC, however at the time of withdrawal the IFSC code would have changed due to merger of banks etc., In this case bank KYC to be updated with proper IFSC code to ensure smooth withdrawal.
There may be a case where due to clerical mistake from the employer end, an incorrect date of leaving would have been mentioned for example if the employee date of leaving is 31st May 2021, the employer would have mentioned as 31st March 2021. In such case the PF claim may be rejected. This problem can be fixed by filing a joint declaration form with jurisdiction EPFO duly signed by employee and employer.
Pension can be withdrawn only after serving for atleast 6months. So, while making the PF claim before 6months of service, only PF withdrawal Form 19 should be filed and not the pension withdrawal form 10C.
It may so happen that the PF claim may be rejected if the employer has failed to contribute to the PF fund for any of the month or for any period during the tenure of employee engagement in the company. In this case, the employee should insist the employer to fix the issue by making the contribution.
Better solution for this is to ensure that employee checks the PF passbook in regular intervals and ensure that there is a regular deposition of PF contribution to the department and credit is given to the account regularly.
PF claim may be rejected due to over lapping of service i.e., an employee would have extended his service with previous employer and would also have been working with new employer with mutual consent of both the employers. In this case there will be over lapping of service and the PF transfer cannot happen due to non-availability of date of leaving. This problem can be fixed by making a manual application to regional EPFO and ensure smooth transfer of funds from old account to new account.
TDS will be deducted in respect to following cases