The Employees’ Provident Fund Organisation (EPFO) has directed employers to ensure activation of Universal Account Numbers (UAN) and Aadhaar-bank account seeding for employees who joined during the current financial year. This initiative aligns with the Employment Linked Incentive (ELI) Scheme announced in the Union Budget 2024-25, which aims to provide financial benefits through Direct Benefit Transfer (DBT). The scheme offers incentives such as salary transfers for first-time employees, job creation in manufacturing, and support to employers creating new jobs. To avail of these benefits, employees must activate their UAN and link their Aadhaar with their bank accounts by November 30, 2024. The activation process involves a straightforward online procedure using Aadhaar-based OTPs. Additionally, the budget proposed labour reforms, including the integration of the E-Shram portal with other systems for seamless labour service solutions, revamping compliance portals, and launching the Prime Minister’s Internship Scheme to create one crore internships over five years. The internship initiative provides a monthly allowance of ₹5,000 and one-time support of ₹6,000, with companies eligible to utilize up to 10% of their CSR funds to support the scheme. These measures collectively aim to incentivize employment, ease compliance, and boost workforce skills and employability.
Employees’ Provident Fund Organisation
Ministry of Labour and Employment, Government of India
Head Office
NBCC Centre, Block-2, Ground-4th Floor, East Kidwai Nagar, New Delhi-110023
No: ELI/UANActivation/2024 Date: 22.11.2024
To,
Employers of all establishments covered under EPFO
Subject: UAN Activation and seeding Bank Account with AADHAAR for availing the benefits under ELI Scheme- regarding.
Ref: Press brief released by Ministry of Labour & Employment through PIB on 21.11.2024
Madam/Sir.
In the light of directions received from the Ministry of Labour & Employment, to ensure that all eligible employees benefit from the Employment Linked Incentive (ELI) Scheme announced in Union Budget 2024-25, UAN activation and AADHAAR seeding in Bank Account of each employee are mandatory.
2. Every subscriber of EPFO is required to have an AADHAAR linked Universal Account Number (UAN), which needs to be activated by creating login on the Member Portal, for availing a number of facilities through a single window. Such facilities include the ability to view and download PF passbooks; submit online claims for withdrawals, advances, or transfers; update personal details and track the status of claims in real time.
3. The activation process is straightforward and can be completed using an Aadhaar-based OTP (One-Time Password) by following the steps given in Annexure A. (attached)
4. Further, for availing the benefits of any Direct Benefit Transfer (DBT) Scheme, the Bank Account number of the beneficiary is required to be seeded with AADHAAR so as to credit the benefits directly into the beneficiary’s bank account.
5. Since, the benefits under ELI Scheme, will be disbursed through DBT to eligible employees, Employers are urged to ensure UAN activation and AADHAAR seeding in Bank Account by 30th November 2024, in respect of all their employees who have joined in the current financial year, starting with the latest foinees. The concerned EPFO offices may kindly be contacted for necessary guidance in this matter, if required.
6. EPFO remains committed to provide social security and retirement benefits to millions of employees across India. By enhancing accessibility through its online service portal, EPFO continues to improve ease of use and operational efficiency.
Copy to:
a. PS to CPFC for information.
b. PS to FA&CAO for information.
c. All Zonal Heads to facilitate employers (through EPFO website)
d. All Other Officers of EPFO for information (through EPFO website)
e. ACC HQ(IS) to place the PDF of this communication in the Employer and Member Portal
f. Web-admin for uploading on EPFO website
Annexure- A
i. Go to EPFO Member Portal.
ii. Click on the “Activate UAN” link under “Important Links”.
iii. Enter your UAN, Aadhaar number, name, DOB, and Aadhaar-linked mobile number.
iv. Employees should ensure their mobile number is Aadhaar-linked to access the full range of EPFO’s digital services.
v. Agree to Aadhaar OTP verification.
vi. Click “Get Authorization PIN” to receive an OTP on your Aadhaar-linked mobile number.
vii. Enter the OTP to complete the activation.
viii. A password will be sent to your registered mobile number upon successful activation.
The Employees’ Provident Fund Organisation (“EPFO”) in a circular dt. 22 October 2024 directed employers of all the establishments covered under EPFO to ensure activation of UAN and seeding the Aadhar with the bank account of the members who joined during the current financial year.
In the light of the directions received from the Ministry of Labour & Employment, to ensure all the eligible employees benefit from the ‘Employment Linked Incentive (“ELI”) Scheme’, proposed in the budget 2024-2025, EPFO issued the circular mandating activation of UAN and seeding of bank account with Aadhar.
Employees whose UAN is activated and have their Aadhar seeded with the bank account are entitled to receive benefit under the ‘Direct Benefit Transfer scheme’ (“DBT”). Benefits under the ELI scheme will be disbursed to eligible employees through DBT.
Budgetary proposals with respect to Labour & Employment
The Hon’ble Finance Minister in her budgetary proposals for 2024-2025 announced the following incentives and reforms with respect to Labour & Employment.
1. Employment Linked Incentive
Following three schemes are announced in the budget for 2024-2025 by the Hon’ble Finance Minister in her budgetary speech. The objective of the said schemes is to provide incentive to employers and employees.
2. Scheme A:
The following benefit shall be provided to the first-time employees.
1. Direct Benefit Transfer of one month salary in three instalments, not exceeding Rs. 15,000, shall be provided.
2. Employees registering with the Employees’ Provident Fund Organisation (“EPFO”) shall be entitled to the benefit.
- First time employees drawing salary up to rupees Rs. 1,00,000 (One Lakh) are entitled to the benefit under this scheme.
3. Scheme B: Job Creation in Manufacturing
1. Employers in the manufacturing sector are incentivised for job creation under this scheme.
2. Both employers and first employees will be provided incentive as per their contributions to EPFO in the first four years of employment.
4. Scheme C: Support to employers
1. Scheme C incentivise the employers across all the sectors for providing additional new employment.
2. Employers who create new jobs within a salary limit of ₹1 lakh per month will be eligible under this scheme.
- Central Government shall reimburse employers up to Rs.3,000 per month for two years towards their EPFO contributions in respect of each additional employee.
5. Labour Reforms:
The following labour reforms are proposed in the budget for 2024-2025.
1. E-Shram portal will be integrated with other portals to provide one-stop labour services solutions. It provides a mechanism to connect jobseekers with potential employers and skill providers.
2. Shram Suvidha and Samadhan portals to be revamped to enhance ease of compliance for industry and trade.
6. Internship: The Prime minister’s internship scheme is introduced in the budget. As per the scheme:
1. Internship opportunities will be provided for 1 crore youth in five years in top companies.
2. Intern will be trained for a period of 12 months.
- An internship allowance Rs. 5000 per month shall be paid to the interns.
1. Besides internship allowance, one time allowance of Rs. 6000 shall be paid.
2. Companies can utilise 10% of CSR funds to fund this scheme.
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