The Government of India is taking crucial steps to ensure employees across India can easily access their Provident Fund (PF) accounts and the benefits tied to central government schemes. One such initiative, led by the Ministry of Labour & Employment, requires employers to ensure that all employees activate their Universal Account Number (UAN) using Aadhaar-based OTP verification. This directive simplifies access to essential financial services for employees while making processes smoother and more transparent for employers. For employers, this also presents an opportunity to align with digitisation goals, streamline internal processes, and minimise the risk of delays in disbursing employee benefits.
What Is UAN Activation And Why It Matters?
UAN stands for Universal Account Number. It is a 12-digit unique number assigned by the Employees’ Provident Fund Organisation (EPFO) in India. The UAN serves as a single identifier for an employee across all the Member IDs or Provident Fund accounts they may have throughout their career, across multiple employers, regardless of job changes. By activating their UAN, employees can perform essential tasks such as checking their PF balance, transferring funds, initiating withdrawals, and tracking claims—all through EPFO’s online services. This eliminates the need for lengthy paperwork or physical visits to EPFO offices.
The Ministry of Labour & Employment has now made Aadhaar-based OTP verification mandatory for UAN activation to streamline this process further. Aadhaar serves as a universal identity document, cutting down the need for employees to produce multiple proofs of identity. This digitised approach ensures faster activation, fewer errors, and higher transparency, making it easier for employees to access benefits under various government schemes.
UAN Activation Deadline For Employers
Organisations must complete the activation process for all employees hired in the current financial year by 30th November 2024, starting with the most recent joiners. Subsequently, employers are required to ensure UAN activation for all their remaining employees. Meeting these deadlines is crucial, not only to comply with government regulations but also to help employees benefit from the Employment Linked Incentive (ELI) Scheme introduced in the Union Budget 2024–25.
How To Complete UAN Activation Using Aadhaar-Based OTP
The process of UAN activation through Aadhaar-based OTP has been designed to be straightforward and user-friendly. By following these steps, employers can ensure that their workforce is registered and ready to access the full range of EPFO’s digital services:
- Accessing the EPFO Member Portal
Start by visiting the EPFO Member Portal. This serves as the central platform for all UAN-related services. Employers must guide their employees to this portal to initiate the activation process. - Navigating to the UAN Activation Section
On the homepage, employees need to locate the “Activate UAN” link under the “Important Links” section. Clicking this will direct them to the activation page. - Providing Key Details
Employees will be required to enter essential details, including:- Universal Account Number (UAN)
- Aadhaar number
- Full name (as per Aadhaar records)
- Date of birth (as per Aadhaar)
- Aadhaar-linked mobile number
- Verifying Through Aadhaar OTP
After entering these details, employees must opt for Aadhaar OTP verification. An OTP will be sent to the Aadhaar-linked mobile number provided. Employees must enter this OTP to complete the verification step. - Completion and Password Generation
Once the OTP is validated, the system will confirm successful activation and a system-generated password will be sent to the registered mobile number. Employees can use this password to log in to their account for the first time and change it to a password of their choice.
Upcoming Biometric Authentication Feature
While the Aadhaar OTP method is currently being implemented, the Ministry has announced plans to integrate state-of-the-art biometric authentication using face-recognition technology. This feature will further enhance security and make the activation process even more seamless. Employers should stay updated about this new development to ensure compliance when it is introduced.
Benefits Of UAN Activation For Employers And Employees
UAN activation through Aadhaar-based OTP brings significant advantages for both employers and employees, going beyond compliance with government regulations. It simplifies processes, enhances transparency, and ensures seamless access to benefits under the Employees’ Provident Fund Organisation (EPFO) framework.
Benefits For Employers
- Regulatory Compliance
Ensuring UAN activation by the set deadline helps employers avoid potential penalties for non-compliance. It also aligns businesses with the government’s digitisation initiatives and fosters a transparent work environment. - Streamlined Processes
With activated UANs, employers can streamline administrative tasks like updating employee details, processing Provident Fund (PF) contributions, and addressing withdrawal or transfer requests. This reduces manual paperwork and speeds up operations. - Access to Incentive Schemes
Compliance with UAN activation directly ties into the Employment Linked Incentive (ELI) Scheme introduced in the 2024–25 Union Budget. By activating UANs for their employees, organisations enable their workforce to benefit from central government subsidies and incentives. - Enhanced Employer Branding
Organisations that actively support their employees in accessing financial entitlements are perceived as responsible and employee-focused. This fosters goodwill among the workforce and improves overall employer branding.
Benefits For Employees
- Easy Access to PF Accounts
UAN activation provides employees with 24/7 access to EPFO’s digital services. They can check their PF balance, view/download passbooks, initiate claims for withdrawals or advances, and update personal information, all online. - Simplified Job Transitions
Employees can seamlessly transfer their PF accounts across employers by linking their UAN to new contributions. This ensures continuity in PF savings and eliminates the hassle of managing multiple accounts. - Secure Digital Transactions
Aadhaar-based OTP verification ensures that all transactions related to UAN and PF accounts are secure, reducing the risk of fraud or errors. - Access to Government Welfare Schemes
With an activated UAN linked to Aadhaar, employees are eligible for various government welfare schemes. This ensures financial inclusion and timely disbursal of benefits directly into their accounts. - Time and Effort Savings
The ability to manage PF-related activities online eliminates the need for employees to visit EPFO offices. This not only saves time but also makes the process more efficient.
How AuthBridge Simplifies UAN And Aadhaar Verification for Employers
Managing UAN activation and Aadhaar verification across an organisation can be challenging, especially when dealing with large workforces. AuthBridge, an industry leader in digital verification solutions for nearly two decades, offers state-of-the-art tools to help employers meet compliance requirements efficiently and securely. By leveraging AuthBridge’s services, organisations can streamline these processes, reduce manual effort and TAT, and ensure timely adherence to government mandates.
AuthBridge’s UAN Verification Services
AuthBridge’s UAN Verification tool is designed to validate and activate UANs seamlessly. This service ensures that employee details are accurately captured and linked to their EPFO accounts, helping employers meet the 30th November 2024 deadline without errors or delays. Key features of this service include:
- Bulk Upload and Verification
AuthBridge enables employers to handle UAN activation for large groups of employees simultaneously, saving time and resources. - Error Reduction
The platform’s robust validation algorithms, with over 99.9% accuracy, minimise errors in employee data entry, ensuring that activation requests are processed smoothly by EPFO. - Real-Time Status Updates
Employers can track the status of each UAN activation request in real-time, ensuring transparency and accountability throughout the process. - Seamless Integration
AuthBridge’s UAN verification solution APis (Application Programming Interfaces) can be integrated into existing HR and payroll systems, making it easy for employers to adopt without overhauling their workflows.
AuthBridge’s Aadhaar Verification Services
Aadhaar-based OTP authentication is at the core of the UAN activation process. AuthBridge’s Aadhaar Verification solution offers a secure and paperless way to authenticate employee identities. This service simplifies the Aadhaar verification process and ensures compliance with the government’s mandate for Aadhaar-linked services.
Key Features of Aadhaar Verification:
- Paperless Authentication
AuthBridge’s digital platform enables employers to complete Aadhaar verification without requiring physical documents, significantly reducing administrative burden. - Fast and Secure OTP Validation
With real-time OTP-based authentication, the system ensures that only Aadhaar-linked mobile numbers are used, enhancing security. - Scalability for Large Teams
Whether for a handful of employees or thousands, AuthBridge’s Aadhaar Verification service is designed to handle large-scale requirements effortlessly. - Compliance with Regulatory Standards
The service adheres to all government guidelines, ensuring that employers remain compliant with regulations while accessing a reliable verification solution.
How AuthBridge Empowers Employers
By partnering with AuthBridge, organisations can:
- Save time and resources with automated and scalable verification tools.
- Ensure error-free UAN activation and Aadhaar linking for all employees.
- Meet compliance deadlines confidently, avoiding potential penalties.
- Foster trust and transparency with their workforce by facilitating smooth access to financial benefits.
Conclusion
The Aadhaar-based UAN activation initiative is more than a regulatory requirement—it’s an opportunity for employers to empower their workforce and streamline processes. By meeting the 30th November 2024 deadline, organisations can ensure employees access essential benefits seamlessly while fostering compliance and efficiency.
FAQs
To avail benefits under the ELI Scheme via DBT, employers must ensure UAN activation and Aadhaar-linked bank accounts for all employees hired in the current financial year by 30th November 2024, starting with the most recent joiners.
UAN activation is typically immediate upon completing the online activation process.
If a UAN is not activated, the employee cannot access their EPF account online, check their balance, withdraw funds, or receive benefits like those under the ELI Scheme.
To activate your UAN online, visit the EPFO Member Portal, select “Activate UAN,” enter your UAN, Member ID, or Aadhaar, along with your name, date of birth, and mobile number. Verify the details via OTP, set a password, and your UAN will be activated.
Membership has no time limit, and individuals can retain it even after leaving a company. However, if no contributions are made to a PF account for three consecutive years, it will stop earning interest after this period.
The UAN (Universal Account Number) is valid for a lifetime and remains the same throughout an employee’s career, irrespective of job changes.
Yes, you can withdraw your EPF without UAN activation by visiting the EPFO office and submitting a duly filled Composite Claim Form (Aadhaar or Non-Aadhaar, as applicable).
To check if your UAN is active, visit the EPFO member portal, click on “Know your UAN status,” enter your details (such as Aadhaar, PAN, or member ID), and follow the instructions to verify activation.
No, an individual cannot have two active PF accounts simultaneously. If you switch jobs, your PF account from the previous employer should be transferred to the new employer to maintain a single account.
No, a person should not have two UANs. Each employee is entitled to only one Universal Account Number (UAN) throughout their employment. If multiple UANs are generated, they must be merged by contacting the EPFO.
