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New Delhi: The Employees’ Provident Fund Organisation (EPFO) today notified an order to make the universal account number (UAN) mandatory for all employers covered under the Employees Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952. “We have notified the draft order to make UAN compulsory for all organisations covered under the EPF & MP Act,” EPFO’s central provident fund commissioner K.K. Jalan said.
The government was considering the proposal to make UAN mandatory for availing of benefit of the scheme. The UAN facility was launched by Prime Minister Narendra Modi in October last year. “The deadline for completing the formalities is 25 August after which action will be taken under the powers given to us by the Employees Provident Funds Scheme, 1952, and other applicable laws for failure to comply with the order,” Jalan had said.
The UAN remains portable throughout the lifetime of an employee and they don’t have to apply for PF transfer claims at changing jobs. It is even more beneficial for workers in the construction sector, who often change their contractor after short span of time and take up new jobs after fining one contract. EPFO had issued over 4 crore UANs to employers across the country in July last year. These UANs were then provided to workers and the process of seeding these accounts with know your customer (KYC) details like permanent account number, bank account and Aadhaar started.
As on today, as many as 56.34 lakh workers have activated their portable PF account numbers. All subscribers have to activate their UAN themselves by logging into the account. After the due process, as many as 2.8 crore UANs are ready for activation but these many account holders have not provided their bank account details as per the EPFO website.
According to information available, there are additional 1.71 crore UANs which were made ready for activation by subscribers who had provided banks accounts details. The bank account details are necessary for using UAN for various claims including PF withdrawals. However, those subscribers who have UAN but not provided bank account details can activate their UAN and access it online
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