EPF nomination: How to add nominee to your Provident Fund account

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EPF nomination: How to add nominee to your Provident Fund account

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Are you an employee who is eligible for benefits under the EPFO scheme? If you answered yes to that, you probably already have an EPF account. And it is very important to learn how to add a nominee in your EPF account online, so your loved ones can avail the financial benefits due under the scheme more easily.

What is nomination under the EPF scheme?

Nomination is the process of assigning a nominee to your EPF account. In case of your demise, this nominee will be entitled to receive the balance in your account and the benefits due from this scheme. So, typically, your nominee will be someone close to you, like your child or your spouse.

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.

But let’s back up a bit. In the case of EPF nomination, what does ‘family’ mean? The EPF Act explains that a family means the following —

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

How to add nominee details in EPF?

You can add a nominee to your EPF account online itself, using the process of e-nomination. This is a quick and easy way to ensure that your family is protected and has easy access to the benefits from your EPF account in case of your demise. 

Want to learn how to add a nominee in your EPF account online? Check out the steps that you’ll need to follow.

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 or nominees, as the case may be.

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.

With this, your e-nomination process is complete. In case you do not have any family at present, you can assign any other person as a nominee. But should you get married or have children at a later point in life, your previous nomination will become invalid. So, you need to update your nominee details accordingly. 

Why is nomination necessary?

So, you now know how to add nominee details in EPF online. But why is this necessary? To explain this, let me first take you through the benefits you get from your EPFO account.

The Employees’ Provident Fund (EPF)

Here, you and your employer contribute a specific sum each month. And you earn interest on this balance as per the rates fixed by the government of India. At the time of retirement or death, you or your nominee will receive the capital along with the accumulated interest. 

The Employees’ Pension Scheme (EPS)

EPS gives you pension income once you have attained 58 years of age. In case of your demise, your nominee will be eligible to receive this pension.

The Employees’ Deposit Linked Insurance (EDLI)

The EDLI scheme gives you a life insurance cover. In case of your demise, your family can raise a claim equal to 35 times your average monthly salary (capped at Rs. 15,000), subject to a limit of Rs. 7 lakhs. 

So, as you can see, you receive a three-fold benefit under these schemes. Nomination makes it easier for your nominee to claim the balance in your EPF account, the pension benefits due from your Employees’ Pension Scheme account and the insurance benefits due under the Employees' Deposit Linked Insurance Scheme (EDLI). So, ensure that you finish the nomination process in a timely manner, so your family is not inconvenienced in any way in your absence. 

Summing up 

Now that you know all about how to add a nominee in EPF online, you can go ahead and do this as soon as possible (if you haven’t already). Adding a nominee is very important. It ensures that your loved ones have easier access to their financial benefits in your absence. 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 (FAQs)

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. 

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