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Adding a nominee to your Provident Fund account: A step-by-step guide

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Adding a nominee to your Provident Fund account: A step-by-step guide

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Nomination is the process of assigning 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 your investments in the event of your demise.

Adding a nominee tend to bring up morbid thoughts of your own mortality. But it is something that needs to be done to ensure that the financial dividends you are building towards can be transferred to your near and dear ones in a hassle-free manner. Here, we will focus on the nomination process for your Employee Provident Fund (EPF) account.

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 then acquires a family, this nomination will become invalid.

Defining family

But let’s back up a bit. In the case of EPF nomination, what does ‘family’ mean? Here is the definition of family according to the EPF Act.

In 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 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

The step-by-step guide to adding a nominee to your EPF account

You can add a nominee to your EPF account online itself, using the process of e-nomination.

Step 1: Visit the EPFO website here.

Step 2: Hover over the ‘Services’ section and click on the tab labelled ‘For Employees.’ 

Step 3: Click on the ‘Member UAN/Online Service’ option.

Step 4: Login using your UAN and password.

Step 5: Under the ‘Manage’ tab, select the option called ‘E-Nomination.’

Step 6: You’ll then see a new tab called ‘Provide Details’ on the screen. 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: Then, 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 on 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 sum each month to your PF account. You earn interest on this balance as per the rates fixed by the government of India. A part of these contributions go 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 and provides life insurance cover through which your family can raise a claim equal to 35 times your average monthly salary, capped at Rs 15,000 and subject to a limit of Rs 7 lakh. 

Your family will receive the capital along with the 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. 

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, it is advisable to have a nominee to your EPF account, 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 for the same. 

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

Here are the steps to update your EPF nomination online

Step 1: Visit the EPFO Member e-Sewa Portal.

Step 2: Login by entering your UAN, password, and sign in after completing your captcha.

Step 3: Select the ‘E-nomination’ option under the ‘Manage’ tab and enter new nomination.

Step 4: Your ‘Profile’ details will appear on the screen.

Step 6: Select ‘Yes’ under the ‘Family Declaration’ section to add a new nominee or update the details of the previously existing nominee.

Step 7: Provide the nominee details, i.e. the Aadhaar number, name,  gender, date of birth, relation, bank account details, and guardian (if the nominee is a minor), and upload the photo of the nominee. Click on the ‘Save Family Details’ option. You can also Add more nominee.

Step 8: Enter the total amount of shares for the added nominees and save EPF nomination.

Step 9: Click on the ‘e-Sign’ option under the ‘Pending Nomination’ section and proceed.

Step 11: On the new page, enter the Aadhaar virtual ID and click on the ‘Verify’ button.

Step 12: Tick/select the box to provide your consent for e-KYC services data from Aadhaar.

Step 13: Enter your Aadhaar or Virtual ID to get and fill OTP. Select the check box to give your consent and click on the ‘Submit’ button.

Step 14: Upon verification of the OTP, the new nominee will be registered with the EPFO.

4.How do I check my EPF nominee status?

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

Be well researched. Read more!

1. What is 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

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