Employees Provident Fund Organisation has updated the claim settlement process by excluding some categories of employees from the mandatory linkage of their Aadhaar number with the Universal Account Number (UAN). The aim behind this is to ease claim processing for a few sections of employees who might face difficulties in procuring an Aadhaar.
Excluded Categories of Employees
The EPFO circular declares the following categories exempted for Aadhaar-UAN linkage:
1. International Employees: Those who completed assignments in India and returned to their countries of origin, thereby not obtaining an Aadhaar number.
2. Overseas Indian Citizens with foreign citizenship: Former citizens who have permanently migrated out of India, acquired foreign citizenship, and do not possess an Aadhaar.
3. Nepal and Bhutan Citizens: Employees from Nepal and Bhutan employed in establishments falling under the EPF & MP Act, who are residing outside India and do not have an Aadhaar.
Alternate Verification Process
The EPFO has specified alternative identity verification processes for the exempted employees as under:
– International Employees: Verification through valid passports
– Nepal and Bhutan Citizens: Verification through the citizenship identification certificates or any other relevant documents.
The PAN and bank account details are also to be verified by the officials for confirming eligibility for the benefits.
Due Diligence and Approval Process
The EPFO stresses strict verification in this category. Officials need to record all the details of verification and seek OIC’s approval through an e-office file before sending it to the claims processing stage. Bank account verification is an essential procedure for all such cases, and the confirmation from the employer is obtained for those above ₹5 lakh. All settlements shall be done through NEFT to ensure secure transactions.
Clarification on UAN Generation
The EPFO clarifies that an employee is to have only one UAN for the entire service life and that changing employment or facing unemployment does not necessitate a new UAN. It is not permissible to obtain a new UAN upon change of job. Employees are encouraged to shift all previous service records with previous UANs to the current UAN using the ‘One Member One EPF Account’ feature available on the EPFO portal.
Consequences of the Update
This update reflects the EPFO’s commitment to allowing diverse employee circumstances in settling claims while ensuring integrity and efficiency in the claim settlement process. The alternative methods of verification will ensure easy settlement of claims by EPFO for employees unable to link their Aadhaar to their UAN, hence reducing potential delays and grievances.
