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Adding A Nominee To Your Provident Fund Account: A Step-by-step Guide

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August 5, 2022

Summary

What’s Inside

E-Nomination is an online method to assign a nominee to various accounts and investments in your name so that they are entitled to receive the balance in your accounts and the benefits due from the schemes of your investments in the event of your demise. E-Nomination in EPFO tends to bring up morbid thoughts of your mortality. But it must be done to ensure that the financial dividends you build towards can be transferred to your near and dear ones hassle-free. 

In today’s world, easy accessibility of smartphones, computers, and the internet has led to every form, every change and every application becoming online. This blog will focus on the nomination process for your Employee Provident Fund (EPF) account and how to do it easily online. 

Defining Family

As per the EPF rules, any member who has a family can assign one or more members of the family as nominees. And a member who has no family can nominate any other person. But if the member acquires a family, this nomination will become invalid.

In the case of an EPF e-nomination, what does ‘family’ mean? Here is the definition of family according to the EPF Act.

In the case of a male EPF member:

  • His wife
  • His children (whether they are married or unmarried)
  • His dependent parents 
  • Widow of son and children

In the case of a female EPF member:

  • Her husband 
  • Her children (whether they are married or unmarried)
  • Her dependent parents 
  • Dependent parents of the husband
  • Widow of son and children

A Step-by-step Guide To Adding A Nominee To Your EPF Account

Using e-nomination, you can add a nominee to your EPF account online. Follow the below steps.

Step 1: Visit the EPFO website here.

Step 2: Hover over the 'Services' section and click the 'For Employees' tab.

Step 3: Click the 'Member UAN/Online Service' option.

Step 4: Log in using your UAN and password.

Step 5: Select the ‘E-Nomination' option under the 'Manage' tab.

Step 6: On the screen, You'll see a new tab called 'Provide Details'. Enter your details and click on the 'Save' option.

Step 7: You will then have to update the family declaration. Click 'Yes' if you have family or 'No' if you don't.

Step 8: Add your nominee(s).

Step 9: You can then declare the share for each nominee in percentage by clicking the 'Nomination Details' option. The total percentage should come up to 100%.

Step 10: Click on 'Save EPF Nomination' to save the share details.

Step 11: To complete the e-nomination process, click the 'E-sign' option to generate an OTP. Then, submit the OTP received on the mobile number linked with your Aadhaar card.‍

What Exactly Do Nominees Get?

You and your employer contribute a specific monthly sum to your PF account. You earn interest on this balance per the rates the Government of India fixed. A part of these contributions goes to the Employees’ Pension Scheme (EPS), through which you get pension income once you have attained 58 years of age.

The Employees’ Deposit Linked Insurance (EDLI) is linked to your PF account. It provides life insurance cover through which your family can raise a claim equal to 35 times your average monthly salary, capped at INR 15,000 and subject to a limit of INR 7 lakh.

Your family will receive the capital and accumulated interest on these contributions and can claim the insurance benefits if you add them as nominees to your PF account. Also, now that the EPFO has made e-nomination mandatory, it is all the more reason to add nominee details to your EPF account sooner rather than later.

Conclusion

Nomination ensures your hard-earned financial assets go to loved ones hassle-free. Secure your family's future with a simple online process on the EPF platform. If no nominee is assigned, the family or legal heirs will face a lengthy and cumbersome process to claim the deceased person's investments and assets. So, adding nominee(s) is the wisest thing to do.

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Frequently Asked Questions

1. Is it mandatory to add a nominee in EPF?

The Employees’ Provident Fund Organisation (EPFO) has recently made e-nomination mandatory for all EPF members. However, no specific date or deadline has been mentioned to complete this procedure for existing members. That said, having a nominee to your EPF account is advisable, so your family will not find it a hassle to receive the financial benefits in case something untoward happens to you.

2. Who will approve e-nomination in EPF?

No approval is required for e-nomination in EPF. So, if you are an EPF member and want to add a nominee to your account, you need not wait for your employer’s approval. 

3. How can I update my e-nomination in EPF online?

To update your EPF nomination online, log in at EPFO Member e-Sewa Portal, add nominees with details, e-sign, and verify with OTP for registration.

4. How do I check my EPF nominee status?

To check your nominee status, log in to the Unified Portal and click the 'Manage' tab. Under e-Nomination, you can find the status of your nomination.

Be well-researched. Read more!

1. What is a provident fund - Meaning, types, calculation and more
2. What are the requirements in the EPS form
3. What are some of the best pension schemes in India
4. How to invest in the National Pension Scheme online 

Disclaimer

Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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