The Employees’ Provident Fund Organisation (EPFO) recently announced exceptions for certain classes of employees regarding seeding Aadhaar in order to settle their physical claims. Typically, EPFO subscribers are required to link their UAN (Universal Account Number) with Aadhaar for claim settlements; however, specific exemptions have been outlined in a circular dated November 29, 2024.
The exempted categories of workers are as follows:
> International workers who have left India after completing their assignments without obtaining Aadhaar.
> Indian workers who have permanently migrated to a foreign country, acquired citizenship, and do not possess Aadhaar.
> Citizens of Nepal and subjects of Bhutan who meet the definition of an employee and are employed by establishments covered under the EPF&MP Act, but do not reside in India and hence do not have Aadhaar.
Hence, it is necessary to accept physical claims from these individuals and follow proper procedures to authenticate the member’s identity using alternative documents such as a passport for international workers or a citizenship identification certificate for Nepalese and Bhutanese workers.
Additionally, verifying PAN and bank account information is essential to determine eligibility for benefits.
The EPFO’s circular emphasizes the importance of exercising caution in these cases, documenting verification details, and seeking approval from the OIC through an e-office file for processing such claims.
In line with standard procedure, officials are required to verify bank accounts in all instances. A confirmation from the employer may only be necessary if the account balance exceeds Rs 5 lakh. The circular also specifies that NEFT will be the preferred mode of credit for settlements.
EPFO and UAN
The Ministry of Labour and Employment has directed the Employees’ Provident Fund Organisation (EPFO) to collaborate closely with employers and ensure the activation of the Universal Account Number (UAN) for employees. This directive was issued in a statement released on November 21, 2024.
As per the guidelines, employers are required to activate the UAN for all employees who have joined in the current financial year by November 30, 2024, using Aadhaar-based OTP verification. Employers should prioritize activating the UAN for newly hired employees first and then proceed to complete the process for all employees currently working with them.
Employees do not need to activate a new UAN on the EPFO portal, as stated in a recent social media post by the EPFO. It is clarified that individuals should not generate a new UAN when switching employers or experiencing any period of unemployment. The EPFO emphasizes that each member is only allowed to have one UAN at a time, without the need for obtaining a fresh UAN in any circumstance.
To avoid issues with having two allotted UANs, employees are advised to transfer all prior services associated with previous UANs to their current UAN using the One Member One EPF Account feature on the EPFO portal.