Linking of Aadhaar with EPF Account
In terms of clientele and financial transactions, the Employees' Provident Funds Organization (EPFO) is one of the world's largest social security organizations. The EPFO had issued a notification dated April 30, 2021, which had made it mandatory for its subscribers to link their Aadhar Card with PF UAN (Universal Account Number) so that the employers are able to file Employee Cum Return (ECR) challan and deposit the money into the employees or subscribers Employees’ Provident Fund (EPF) Account.
As per the notification by the EPFO, the last date to link Aadhaar with the PF UAN is September 1, 2021. The EPFO had previously set a deadline of June 1, 2021, which has now been extended.
The notification stated that “The ECR shall be allowed to be filed only for those whose Aadhaar numbers are seeded and verified with the UANs, ensure that all contributory members' Aadhaar numbers are seeded in order for them to continue to receive EPFO services without interruption and to avoid any inconvenience.”
To implement this new norm, the Labour Ministry amended Section 142 of the Code of Social Security 2020. Section 142 of the Code provides for the use of an Aadhaar number to verify the identification of an employee, unorganized worker, or any other individual seeking benefits or services under the Code. The newly introduced Section 142 of the Code on Social Security, 2020 requires the existing EPF members to use Aadhaar to verify their identification in order to be eligible for benefits like pension, gratuity, or any other EPF withdrawal benefit. This simply means that Aadhaar is now required for both registering for the EPF system and withdrawing from the EPF scheme. All banks, PPF accounts, and EPF accounts require the connection of PAN and Aadhar Card as a basic Know Your Customer (KYC) requirement. As a result, if an employee's UAN is not connected to Aadhaar by August 31, 2021, neither employers nor employees would be able to deposit money into their EPF account. This is a basic measure of enforcing the law.
Following are the steps to link your Aadhaar with EPFO online:-
Visit epfindia.gov.in
Click on Online Services, click on E-KYC Portal
Enter your Aadhaar Number and wait till the OTP is generated.
Re-Enter the Aadhar number and verify with the OTP.
Your Aadhaar will be linked to your PF Account.
Authored by-
A&P Partners