UAN activation and Aadhaar linking: January 15 deadline nears; check all important details

The January 15 deadline to activate Universal Account Number (UAN) and link Aadhaar with bank accounts under the Employment Linked Incentive (ELI) scheme is almost here.

The Employees Provident Fund Organisation (EPFO) set the original deadline as November 30, which was first extended to December 15, and finally to January 15.

Employers have been advised to prioritise UAN activation and Aadhaar seeding for employees, especially the ones hired in the current financial year (FY25).

What is the ELI scheme?

The ELI scheme was launched to create two crore jobs in the country in the next two years and boost employment in the formal sector. The central government announced three schemes under the Employment Linked Incentive in the Union Budget 2024 as a part of Prime Minister Modi’s combination of five schemes for job creation and skill development. With an outlay of ₹2 lakh crore, these schemes are expected to benefit over four crore youth.

Why is activating UAN essential?

UAN activation is the process of activating the universal account number to access services provided by the EPFO:

• Withdraw EPF funds online.

• Check EPF balance.

• Update contact details.

Additionally, linking Aadhaar with a mobile number must be done so that the EPF money can directly be transferred to the linked bank account.

To be eligible for the scheme, individuals must have an activated UAN and a bank account linked with Aadhaar. Furthermore, to access the services offered by EPFO online like direct benefit transfer (DBT), UAN activation and Aadhaar seeding must be completed.

How to activate UAN online?

New EPF members can complete their UAN activation online through the EPFO Member Sewa portal. Here are the steps:

Major EPFO developments

Pensioners under the Employees' Pension Scheme (EPS), 1995, can now access their pensions from any bank branch in India. In September 2024, Union Minister of Labour and Employment Mansukh Mandaviya approved the Centralised Pension Payment System (CPPS). This new system will enable nearly 78 lakh EPS members to withdraw their pensions from any bank branch nationwide. The EPFO completed a full-scale rollout of the new CPPS in December 2024, making it a landmark move towards enhancing the pension disbursement system. This system is a significant shift from the current decentralised pension distribution system which requires each zonal/regional office of EPFO to maintain separate agreements with only 3-4 banks, the ministry said in a statement.

EPFO is also planning to issue ATM cards to its members to allow beneficiaries to withdraw their pension money directly from ATMs after the settlement of their claims. Under the current procedure, the members have to wait for 7-10 days for the settlement of their claims online. The provident fund body may also allow direct transfers to e-wallets for provident fund (PF) claims.

Furthermore, the EPFO has increased the one-time withdrawal limit for medical emergencies, raising it from ₹50,000 to ₹1 lakh.

More about EPFO

The Employees' Provident Fund (EPF), managed by the Employees' Provident Fund Organisation (EPFO), is a mandatory savings program designed to provide financial security to employees of eligible organisations after retirement.

Under the scheme, employees contribute 12% of their basic salary each month, with employers matching this contribution. The funds in the EPF account earn annual interest, and members can access the total balance when they retire. Additionally, withdrawals can be made for various reasons such as unemployment, medical emergencies, marriage, education and home renovations, among other valid purposes. The EPFO also manages other schemes like pensions and insurance for formal sector workers.