Employment Verification
The Employees’ Provident Fund Organization (EPFO) plays a vital role in supporting employees and employers, ensuring compliance with social security regulations.
- Mandatory Compliance: EPFO mandates that organizations with 20 or more employees must contribute to the Employees’ Provident Fund (EPF) scheme. Employers and employees both contribute 12% of the employee’s EPF wages. Of the employer’s contribution, 8.33% goes to the Employee Pension Scheme (EPS), while the remaining 3.67% contributes to the EPF. The employee’s portion of the total 12% goes directly to the EPF.
- Facilitated Online Services: EPFO provides online facilities for employers, including:
- Registration of Establishments: Employers can register their establishments online.
- Monthly Returns and Payments: Employers can file monthly returns and make contributions online.
- Integration with Shram Suvidha Portal: EPFO’s services are integrated with the Shram Suvidha Portal for streamlined compliance.
- Employee Verification: Employers can verify the employment history of potential hires using EPFO services. This helps ensure accurate information during the hiring process.
- Retirement Benefits Administration: Employers play a critical role in managing EPF accounts for their employees. EPFO assists in maintaining accurate records and facilitating smooth retirement benefit disbursements.
EPFO helps in providing Retirement Benefits. EPFO manages the Employees’ Provident Fund (EPF), which is a savings scheme for employees. A portion of an employee’s salary is contributed to the EPF, which accumulates over time. Upon retirement, employees receive a lump sum amount from their EPF account.
Employment Verification
- UAN (Universal Account Number): EPFO maintains UAN for each employee. Lenders can verify an applicant’s employment status by cross-referencing the UAN with EPFO records. If the UAN is active and linked to the applicant, it confirms their current employment.
- Job Stability: Consistent EPF contributions over time indicate stable employment. Lenders consider this as a positive factor when assessing loan applications.
Income Verification:
- Salary Details: EPFO data includes salary information contributed to the EPF. Lenders can verify an applicant’s income by checking the EPF contributions. This helps assess the applicant’s repayment capacity.
- Employment Details: Employers submit an employees details in Form 5A to EPFO. These contains employment details. Lenders can use this information to validate an applicant’s income and job tenure.
KYC Verification:
- Bank Account Details: EPFO data includes bank account information. Lenders verify the applicant’s bank account details to ensure seamless loan disbursal.
Fraud Prevention:
- Consistency Checks: Lenders compare the applicant’s declared income with EPFO records. Any discrepancies raise further investigations.
- Ghost Employees: EPFO data helps identify fraudulent loan applications where non-existent employees are used for loan approvals.
Loan Approval and Verification:
- Personal Loans: Lenders can use EPFO data to verify an applicant’s employment history, income stability, financial stability and job tenure. This helps expedite loan applications, approvals and risk assesments.
- Product assessment: Lenders can use EPFO data to match applicant’s requests with suitable product categories basis applicant’s employer name.
Retirement Planning and Investment Products:
- EPF Balances: Individuals can use EPFO data to plan retirement savings and investments.
- Mutual Funds: EPFO records contribute to assessing an individual’s risk appetite.
Insurance Underwriting:
- Life Insurance: EPFO records help assess an individual’s financial health, which impacts life insurance coverage and premiums.
- Health Insurance: Employment history influences health insurance eligibility and pricing.
Signzy's EPFO Stack provides features for both individuals and organizations. Here's a concise overview of the three categories of product options within Signzy's EPFO stack, tailored to cater to the needs to assess both individuals and organizations based on requirements of the process.
Our API offers essential employment details, including the last or most recent company name and the presence or absence of an exit date, indicating current employment status. To enhance accuracy, we also have advanced API which conduct EPFO checks on company and employee names obtained from the basic API. This comprehensive approach verifies recent employment within the last three months, resolving ambiguities arising from unpopulated exit dates. Clients benefit from improved precision in assessing individuals' current employment status for efficient digital loan processes.
Signzy’s Employer API stack streamlines verification of establishment details, registration status, and PF submission and filing specifics for employees. With our comprehensive set of APIs, clients can effortlessly verify using name of the company, or establishment Ids. They can further empower clients to efficiently access vital information regarding PF submission, ensuring compliance and accuracy.
Signzy’s consent-based employment verification solution offers unparalleled access to crucial employment data. With the ability to parse PF passbooks dating back to April 2010, this API empowers users to gather comprehensive information. Comprising two key APIs—one for OTP retrieval and the other for OTP submission and report generation—this solution ensures a seamless process. Clients can leverage this advanced tool to expedite verification processes, enabling smoother digital loan journeys for their customers.
- What is EPFO, and why is it important in employment verification?
- EPFO stands for Employees’ Provident Fund Organization, which supports employees and employers in adhering to social security regulations, primarily through managing the Employees’ Provident Fund (EPF) scheme.
- What are the requirements for an organization to contribute to EPF?
- Organizations with 20 or more employees are mandated to contribute to the EPF scheme, with both employers and employees contributing 12% of the employee’s EPF wages.
- Is EPFO a verified source?
- EPFO is a government organisation and all eligible companies are mandated to register details with EPFO on a regular basis.
- How can EPFO assist in employment verification?
- EPFO maintains a Universal Account Number (UAN) for each employee, which can be cross-referenced to verify employment status. Additionally, consistent EPF contributions indicate job stability.
- In what ways can EPFO data expedite loan approval and verification processes?
- EPFO data aids lenders in verifying employment history, income stability, financial stability, and job tenure, facilitating expedited loan applications, approvals, and risk assessments.
- What are the key features of Signzy's EPFO Stack for clients?
- Signzy's EPFO Stack offers essential employment details verification, company details verification, and access to employee EPFO passbooks, providing clients with comprehensive solutions for their verification needs