A secure, long term investment tool and retirement savings option, the Employees’ Provident Fund (EPF) allows members to withdraw full or partial funds under specific conditions. While partial withdrawal is permitted even before retirement, final settlement is approved only after you leave employment.
You are eligible to open an EPF account if your basic pay and dearness allowance are up to ₹15,000, and you can add the voluntary provident fund () option if the basic pay and DA exceed ₹15,000 per month.
UAN activation shifted to Umang app
Notably, the EPFO has discontinued Universal Account Number () activation and new UAN generation through the portal and shifted both services to the Umang app with Aadhaar-based Face Authentication (FAT) requirement.
The overhaul follows a major database consolidation and software upgrade that, according to , is aimed at making its online services faster and more reliable.
How to activate UAN through Umang: Stepwise guide
- Download the Umang app from the Google Play Store or Apple App Store.
- Register on the app with your Aadhaar-linked mobile number and set a 4-digit M-PIN (remember this for future login).
- After signing in, search for “EPFO” and select “” under “UAN Services Through Face Auth” head.
- Choose “UAN activation” from the options, fill in your UAN, Aadhaar number, and Aadhaar-linked mobile number and click on “Send OTP”.
- Once you enter the OTP, it will prompt you to install the “Aadhaar Face RD app” and once done will display the “scan face” screen to open your camera.
- Complete the face scan, and once the app shows a green circle, the face has been successfully captured.
- The app will display your details (name, date of birth, etc.). Review these and click Submit.
- Your UAN will be activated, and a temporary password will be sent to your mobile via .
- To verify the status, in the Umang app, under “UAN Services Through Face Auth” choose the “UAN allotment and activation” option.
- Enter the UAN number (received via SMS), the number, and the mobile number and check the consent box before clicking “Send OTP”.
- If the process was successful, the app will display a message stating: “The UAN entered is already activated”.
EPF key highlights: Interest credit and rate, tax benefit, withdrawal limits
- The Finance Ministry has reportedly ratified the EPFO’s suggestion of for EPF and VPF contributions by salaried citizens this financial year (FY2025-26), PTI reported.
- The EPF interest credits were expected to be complete by 15 July this year. This marks the third consecutive term that EPF subscribers receive 8.25% interest rate on their provident fund savings with the retirement fund body.
- In terms of tax benefits, annual employee contributions up to ₹1.5 lakh are exempt under of the old tax regime. Employers’ contribution of up to 12% (below ₹7.5 lakh) is exempt under both the old and new tax regimes. There is no comparable benefit under the new tax regime at present.
- Further, interest on employees’ accumulated contribution is tax-free up to ₹2.5 lakh, while interest on the employer’s contribution is tax-free.
- When it comes to withdrawal of funds, as per the mandate, EPFO subscribers of the must maintain 25% in their EPF account at all times, which means you can access a maximum of 75% of your corpus during partial withdrawal.
- For example, a subscriber with ₹2 lakh total balance (employee and employer contributions), is eligible to withdraw up to ₹1,50,000 as partial withdrawal while keeping ₹50,000 as minimum balance in the EPF account.