Govt directs EPFO to ensure employees' UAN is active for ELI

• The Central Government has already issued directions to Ministries/Departments to ensure payments of Subsidy/Incentive to the beneficiaries of the welfare schemes through Aadhaar Payment Bridge and ensuring 100% Biometric Aadhaar Authentication.

Highlights:

• To ensure widespread benefits under the Employment Linked Incentive (ELI) Scheme, announced in the Union Budget 2024-25, the Ministry of Labour & Employment has launched a comprehensive campaign for Universal Account Number (UAN) activation among employees, leveraging Aadhaar for seamless and efficient processes.

Key Initiatives and Directives

Aadhaar Integration in Welfare Schemes:

• Aadhaar-based payment bridges and 100% biometric Aadhaar authentication have been mandated for beneficiary payments under welfare schemes.
• Aadhaar simplifies identity verification, eliminates the need for multiple documents, and ensures transparency in benefit delivery.

Focus on UAN Activation:

• Employers are required to activate UANs for all employees using Aadhaar-based OTP verification, with a deadline of 30th November 2024 for new joinees.
• Employers must subsequently complete the activation for all existing employees.

Role of EPFO:

• The Employees' Provident Fund Organisation (EPFO) has been tasked to mobilize its zonal and regional offices to drive the campaign effectively, ensuring that both employers and employees comply with the directives.

Benefits of UAN Activation

Seamless Access to EPFO Services:

• Employees can manage their Provident Fund (PF) accounts online, including viewing passbooks, submitting claims, and updating personal details.
• The process eliminates the need for physical visits to EPFO offices, offering round-the-clock service accessibility.

Enhanced Transparency and Efficiency:

• Biometric Aadhaar authentication ensures that benefits reach the rightful beneficiaries without leakages.
• Digitalization streamlines processes, reducing administrative burden and processing times.

Employee Empowerment:

• Real-time tracking of claims and the ability to submit withdrawals or transfer requests online provides employees with greater control over their PF accounts.

Implementation Strategy

Employer Responsibilities:

• Employers must prioritize UAN activation for employees joining in the current fiscal year, followed by existing employees.
• They must ensure compliance with Aadhaar-based verification standards.

Outreach and Support by EPFO:

• Regional and zonal offices will spearhead awareness campaigns, offering support to employers and employees for smooth implementation.

Timelines and Monitoring:

• November 30, 2024, marks the first major milestone for UAN activation.
• Regular monitoring and feedback mechanisms will ensure adherence to the campaign’s objectives.

Prelims Takeaways

• Universal Account Number (UAN)
• Employment Linked Incentive (ELI)
• EPFO