Government Mandates UAN Activation to Boost Employee Benefits

The Ministry of Labour and Employment has tasked the EPFO with ensuring Universal Account Number (UAN) activation for employees. This initiative, part of the 2024-25 Union Budget, aims to maximize benefits under the Employment Linked Incentive Scheme by using Aadhaar for seamless service delivery and job creation.

The Ministry of Labour and Employment has instructed the Employees' Provident Fund Organisation (EPFO) to operate in a campaign mode to ensure the activation of the Universal Account Number (UAN) for employees, the ministry announced in a statement on Thursday. The EPFO is expected to involve their zonal and regional offices to achieve widespread outreach.

This initiative is part of measures announced in the Union Budget for 2024-25 aimed at extending the benefits of the Employment Linked Incentive (ELI) Scheme to as many employers and employees as possible. In line with this, the government has urged ministries and departments to facilitate payments of subsidies and incentives through the Aadhaar Payment Bridge, ensuring 100% biometric Aadhaar authentication.

Employers are required to initiate UAN activation using Aadhaar-based OTP for all employees joining in the current financial year by November 30, 2024, beginning with the most recent hires. UAN activation provides employees with seamless access to the EPFO's online services, which include managing Provident Fund (PF) accounts, viewing and downloading PF passbooks, and submitting online claims for withdrawals, advances, or transfers, among other features.

The government plans to roll out three schemes for 'Employment Linked Incentive' as part of the Prime Minister's package, focusing on recognizing first-time employees and providing support to both employees and employers. The ELI Scheme aims to create over 2 crore jobs in two years, significantly contributing to job opportunities and enhancing livelihoods.

(With inputs from agencies.)