Ministry of Labour and Employment has issued a directive to Employees’ Provident Fund Organisation (EPFO) to ensure the activation of Universal Account Numbers (UAN) for employees using Aadhaar-based One-Time Password (OTP).
This initiative is part of the government’s broader push for 100% Aadhaar-based biometric authentication and aims to streamline access to EPFO services.
EPFO UAN Activation: Background and Context
The directive comes in the wake of the Union Budget 2024-25, which introduced the Employment Linked Incentive (ELI) Scheme.
The scheme aims to create over 2 crore jobs in the country within two years and ensure that the benefits reach the maximum number of employers and employees.
The central government has already issued directions to various ministries and departments to ensure payments of subsidies and incentives through the Aadhaar Payment Bridge and achieve 100% biometric Aadhaar authentication.
Implementation, Process and Benefits of UAN Activation
In the first stage, employers are required to complete the process of UAN activation through Aadhaar-based OTP for all employees.
They have to do this for employees who joined in the current financial year by November 30, 2024.
The process will start with the latest joinees and then extend to all employees working with the employers.
The activation process involves visiting the EPFO Member Portal and clicking on the “Activate UAN” link.
Then, users must enter their UAN, Aadhaar number, dob, and Aadhaar-linked mobile number.
This will be followed by entering the OTP sent to the Aadhaar-linked mobile number.
UAN activation provides employees with seamless access to EPFO’s comprehensive online services.
This includes managing PF accounts, viewing and downloading PF passbooks, and submitting online claims for withdrawals, advances, or transfers.
It also involves updating personal details and tracking claims in real-time.
This allows employees 24/7 access to EPFO services from the comfort of their homes, eliminating the need for physical visits to EPFO offices.
In the next phase, UAN activation will include the state-of-the-art facility of biometric authentication through face-recognition technology.
This will further enhance the activation process and ensure greater security and accuracy.
EPFO UAN Activation: Impact on Employers and Employees
For employers, UAN activation ensures compliance with government schemes and facilitates smoother administration of PF accounts.
For employees, it simplifies the process of accessing their entitlements and reduces the need for multiple identity documents.
Aadhaar-based verification eliminates the need for producing multiple documents to prove one’s identity, enhancing transparency and efficiency.
The Ministry’s directive to EPFO to ensure UAN activation through Aadhaar-based OTP is a significant step. It enhances the efficiency and accessibility of EPFO services.
By leveraging Aadhaar as an identity document, the government aims to streamline processes and improve transparency.
This ensures that beneficiaries receive their entitlements seamlessly.
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