EPFO Introduces Aadhaar Exemption for Certain Employee Categories in Claim Settlements

The Employees’ Provident Fund Organisation (EPFO) has recently introduced a major change in its claim settlement process. The new rules provide exemptions for specific categories of employees from linking their Universal Account Number (UAN) with Aadhaar. This change aims to simplify the claims process for those facing difficulties in obtaining an Aadhaar number, especially for international and foreign workers.

Exemptions for Specific Employee Categories

Under the new EPFO guidelines, certain groups of employees are exempt from the mandatory Aadhaar seeding requirement for UAN. These exemptions include:

1. International Workers: Employees who have worked in India but returned to their home countries without an Aadhaar.
2. Indian Citizens with Foreign Citizenship: Former Indian nationals who permanently migrated abroad and acquired foreign citizenship.
3. Nepalese and Bhutanese Citizens: Citizens from Nepal and Bhutan working under the EPF&MP Act who do not have Aadhaar.
4. Workers Outside India: Employees covered under the EPF&MP Act but residing outside India without Aadhaar.

Impact on Claim Settlements and EPFO’s Guidelines

The exemption for Aadhaar seeding aims to simplify claim settlements while ensuring the security of transactions. All claims for these exempted categories will be processed via NEFT (National Electronic Funds Transfer) to ensure secure payments. EPFO officials are required to exercise strict due diligence, ensuring that all verification details are documented properly. Furthermore, a single UAN should be retained throughout an employee’s career, and past service records should be transferred to the current UAN to avoid complications.

EPFO has also instructed officials to follow an approval process involving the Officer-in-Charge (OIC) to maintain the integrity of the claim settlements. This step ensures transparency and security in the overall process.

Conclusion

The changes made by EPFO regarding the Aadhaar exemption aim to streamline the claim process for workers who face challenges in obtaining the Aadhaar. It ensures that these workers are not deprived of their benefits while maintaining a high level of security and compliance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.