The rules related to the Employees’ Provident Fund (EPF) in India keep getting updated from time to time. Recently, the EPFO has made an important announcement, exempting certain employee categories from the requirement to link Universal Account Number (UAN) with Aadhaar. This decision will provide relief to those employees who do not have Aadhaar card, and they will be able to settle physical claims related to their EPF accounts. In this article, we will give you important information related to this decision, so that you can understand this change and take advantage of it properly.
EPFO new order: Circular of 29 November 2024
EPFO issued a circular on 29 November 2024, announcing relaxation in Aadhaar linking rules for certain employee categories. This decision will make it easier for some employees to settle EPF claims, especially those who are facing Aadhaar related problems.
Employees exempted from linking UAN with Aadhaar
Under this new rule of EPFO, certain categories of employees have been exempted from the requirement of linking Aadhaar with UAN. These categories are:
- International Employees: Employees who have worked in India but do not have Aadhaar card.
- Indian Citizens Permanently Migrated to India: Indian citizens who have permanently settled abroad and do not have Aadhaar.
- Citizens of Nepal and Bhutan: Those who are employed under EPF & MP Act but reside outside India and do not have Aadhaar.
For these categories, EPFO has started the process of identity verification based on an alternate document.
Use of alternate documents
For these categories of employees, EPFO has prescribed that alternate documents will be used for identity verification during the process of claims. For example:
- For International Employees: Passport will be used.
- For citizens of Nepal and Bhutan: Citizenship certificate will be used.
In addition, EPFO officials will check PAN, bank account number and other details to ensure the eligibility of the member.
EPFO strict instructions: Authentication and approval
EPFO has also talked about taking some additional steps in this new order. In this process, officials will:
- Will be required to record complete information of identity verification.
- After verification, it will be mandatory to take approval from OIC (Officer-in-Charge).
Along with this, if the balance of the EPF account is more than ₹ 5 lakh, the employer may be asked to confirm the authenticity of the member. After this process, the claims will be settled through NEFT.
Possibility of EPFO 3.0
This change can be seen as a part of EPFO 3.0, which is expected to bring even bigger reforms in the future. Some other improvements related to EPFO 3.0 can allow the member to withdraw PF through ATM, which will make the process even simpler and faster.
Some important facts about EPFO
EPFO is an important organization for workers in India, which provides services related to their provident fund and pension. Under EPFO, a Universal Account Number (UAN) is issued to the employees, which is a permanent identity card of their EPF account.
Why is this exemption important?
This exemption is important for those employees who are employed abroad and do not have Aadhaar card. Many times employees face problems in obtaining Aadhaar, especially when they are not Indian citizens. This decision will give them an opportunity to settle their EPF claims easily.
Key benefits
- Relief from Aadhaar requirement: Now Aadhaar linking will not be required.
- Simple claims settlement: Claims can be settled through alternative documents.
- Equality and Justice: Equal opportunities will be available for employees who do not have Aadhaar.
Other information related to the new rule of EPFO
Although linking UAN with Aadhaar is a common process, now some categories are out of its scope. This decision can further increase the confidence of employees in EPFO, as this organization is constantly working towards finding solutions to the problems of its employees.
Is Aadhaar linking mandatory?
EPFO has clarified that it is mandatory for all employees to create UAN, but Aadhaar linking is not mandatory if they do not have Aadhaar. For such employees, EPFO has paved the way to settle claims on the basis of alternative documents.
EPFO guidance for such employees
In this direction, EPFO has asked the officials to ensure that all claims are settled properly and transparently. In this, all the necessary documents will have to be verified in the process of claims, so that there is no confusion.
Conclusion
The decision to relax the Aadhaar linking requirement given by EPFO is a positive move that will help employees resolve issues related to their EPF accounts. This decision will provide relief to employees who do not have an Aadhaar card and who have not been able to obtain it due to various reasons.
We hope this article has helped you understand the new order of EPFO. For more information on this change, visit http://epfo.epf.gov.in.For this you can also visit the official website of EPFO.
FAQs
1. Why did EPFO waive Aadhaar linking?
EPFO has exempted Aadhaar linking for employees who do not have Aadhaar cards, such as international employees and citizens of Nepal / Bhutan.
2. What is the importance of linking UAN with Aadhaar?
Linking UAN with Aadhaar makes the process of EPF claims simple and secure, allowing easy identification and verification of employees’ accounts.
3. What should the employee do if he does not have Aadhaar?
If the employee does not have Aadhaar, he will have to do identity verification through alternative documents such as passport or citizenship certificate.
4. What improvements will be there in EPFO 3.0?
EPFO 3.0 is likely to bring new improvements, which may include PF withdrawal through ATM and more features.
5. What if the EPF balance is more than ₹5 lakh?
If the EPF balance is more than ₹5 lakh, the authenticity of the member can be confirmed from the employer, so that the claim can be settled properly.