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 todays 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:
a. His wife
b. His children (whether they are married or unmarried)
c. His dependent parents
d. Widow of son and children
In the case of a female EPF member:
a. Her husband
b. Her children (whether they are married or unmarried)
c. Her dependent parents
d. Dependent parents of the husband
e. 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, Youll 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 dont.
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 familys 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 persons investments and assets. So, adding nominee(s) is the wisest thing to do.
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 employers 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.
