The Employees’ Provident Fund Organization (EPFO) has asked employers to ensure activation of Universal Account Numbers (UAN) and priming of Aadhaar bank accounts for employees who joined during the current exercise. This initiative aligns with the Employment Linked Incentives (ELI) scheme announced in the Union Budget 2024-25, which aims to provide financial benefits through Direct Benefit Transfer (DBT). The program offers incentives such as salary transfers for new employees, manufacturing job creation, and support for employers who create new jobs. To avail these benefits, employees must activate their UAN and link their Aadhaar to their bank accounts before November 30, 2024. The activation process involves a simple online procedure using Aadhaar-based OTPs. Additionally, the budget proposed labor reforms including integration of E-Shram portal with other systems for seamless labor service solutions, revamp of compliance portals and launch of Prime Minister’s Internship Program to create one crore internships over five years. The internship initiative provides a monthly stipend of ₹5,000 and one-time support of ₹6,000, with companies able to use up to 10% of their CSR funds to support the program. These measures collectively aim to encourage employment, facilitate compliance and improve the skills and employability of the workforce.

Organization of the Employees’ Provident Fund
Ministry of Labor and Employment, Government of India
Head office
NBCC Centre, Block 2, Ground Floor, 4th Floor, East Kidwai Nagar, New Delhi-110023

No.: ELI/UANActivation/2024 Date: 11/22/2024

HAS,

Employers of all establishments covered by EPFO

Subject: Activation of UAN and initiation of a bank account with AADHAAR to avail the benefits of the ELI scheme.

Ref: Press briefing published by the Ministry of Labor and Employment via PIB on 21.11.2024

Madam/Sir.

In light of the instructions received from the Ministry of Labor and Employment, to ensure that all eligible employees benefit from the Employment Linked Incentive (ELI) scheme announced in the Union Budget 2024-25, the Activation of UAN and priming of AADHAAR in the bank account of each employee is mandatory.

2. Every EPFO ​​subscriber must have a Universal Account Number (UAN) linked to AADHAAR, which must be activated by creating a login on the member portal, to avail a number of facilities through a single window. These facilities include the ability to view and download PF booklets; submit online requests for withdrawals, advances or transfers; update personal data and track the status of claims in real time.

3. The activation process is simple and can be completed using Aadhaar based OTP (One Time Password) by following the steps given in Annexure A. (attached).

4. Further, to avail the benefits of any Direct Benefit Transfer (DBT) scheme, the beneficiary’s bank account number must be linked with AADHAAR in order to credit the benefits directly to the beneficiary’s bank account.

5. Since the benefits of the ELI scheme will be disbursed through DBT to eligible employees, employers are advised to ensure activation of UAN and priming of AADHAAR in the bank account by the 30th.^th November 2024, for all their employees who joined during the current financial year, starting with the latest winners. The concerned offices of EPFO ​​can be contacted for necessary guidance in this regard, if required.

6. EPFO ​​remains committed to providing social security and pension benefits to millions of employees across India. By improving accessibility through its online services portal, EPFO ​​continues to improve ease of use and operational efficiency.

Copy to:

A. PS to the CPFC for information.

b. PS to FA&CAD for information.

c. All Zonal Heads to Facilitate Employers (Via EPFO ​​Website)

d. All other EPFO ​​officers for information (via EPFO ​​website)

e. The ACC Head Office (IS) should place the PDF of this communication on the Employer and Member Portal.

f. Web-admin for uploading to the EPFO ​​website

Appendix- A

I. Access the EPFO ​​Member Portal.

ii. Click on the “Activate UAN” link under “Important Links”.

iii. Enter your UAN, Aadhaar number, name, date of birth and Aadhaar linked mobile number.

iv. Employees must ensure that their mobile number is linked to Aadhaar to access the full range of EPFO ​​digital services.

v. Accept Aadhaar OTP verification.

vi. Click on “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 Organization of the Employees’ Provident Fund (“EPFO”) in a circular dt. October 22, 2024 directed employers of all establishments covered by EPFO ​​to ensure activation of UAN and fund Aadhar with the bank account of members who joined during the financial year in course.

In light of the guidance received from the Ministry of Labor and Employment, ensure that all eligible employees benefit from the “Employment Linked Incentive” (“ELI”) Scheme’, proposed in Budget 2024-25, EPFO ​​has issued the circular requiring activation of UAN and initiation of bank account with Aadhar.

Employees whose UAN is activated and whose Aadhar is linked to the bank account are entitled to receive benefits under the “Direct Benefit Transfer Scheme” (“Direct Benefit Transfer Scheme”)TBD”). ELI plan benefits will be paid to eligible employees through DBT.

Budget proposals on labor and employment

The honorable Minister of Finance, in his budget proposals for 2024-2025, announced the following incentives and reforms in labor and employment.

1. Job-related incentive

The following three projects are announced in the 2024-2025 budget by the honorable Minister of Finance in his budget speech. The goal of these programs is to provide incentives to employers and employees.

2. Diagram A:

The following benefit will be given to new employees.

1. Direct transfer of benefits of one month’s salary in three installments, not exceeding Rs. 15,000 euros will be provided.

2. Employees registered with the Employees’ Provident Fund (“EPFO”) is entitled to this benefit.

• New employees drawing a salary of up to Rs. 1,00,000 (One Lakh) rupees are entitled to the benefit under this scheme.

3. Diagram B: Job creation in the manufacturing sector

1. Employers in the manufacturing sector are encouraged to create jobs under this program.

2. Employers and first-time employees will receive incentives based on their contributions to the EPFO ​​during the first four years of employment.

4. Diagram C: Support for employers

1. Program C incentivizes employers in all sectors to create additional new jobs.

2. Employers who create new jobs within a salary limit of ₹1 lakh per month will be eligible for this scheme.

• The central government will reimburse employers up to Rs.3,000 per month for two years towards their EPFO ​​contributions for each additional employee.

5. Labor reforms:

The following labor reforms are proposed in the 2024-25 budget.

1. E-Shram portal will be integrated with other portals to provide one-stop manpower service solutions. It provides a mechanism to connect job seekers with potential employers and skills providers.

2. Shram Suvidha and Samadhan portals will be revamped to facilitate compliance for industry and commerce.

6. Internship: The Prime Minister’s internship program is introduced in the budget. According to the diagram:

1. Internship opportunities will be provided to 1 crore youth in five years in top companies.

2. The trainee will be trained for a period of 12 months.

• An internship allowance of Rs. 5000 per month will be paid to the interns.

1. In addition to the internship allowance, a one-time allowance of Rs. 6,000 euros will be paid.

2. Companies can use 10% of CSR funds to finance this program.