The deadline for activating the Universal Account Number (UAN) and linking Aadhaar with bank accounts is approaching quickly. This deadline has already been extended multiple times, with the latest extension set for March 15, 2025. This last date is crucial for individuals who wish to benefit from the Employment Linked Incentives (ELI) scheme.
The Employees’ Provident Fund Organisation (EPFO) announced the extension through a circular dated February 21, 2025. It stated, “The competent authority has granted an extension of timeline for UAN Activation and AADHAAR seeding in Bank account till 15th March 2025”.
UAN:
It is a unique 12-digit identification number given to each EPF subscriber upon joining the service. With this one can access EPF details online, view the passbook, download it, update personal details, and also for making claims. One can access the EPFO details online by logging in through UAN instead of visiting the EPFO office in person.
In some cases, subscribers have been issued more than one UAN, but under the system upgrade process, EPFO plans to keep only one UAN active, which is linked with Aadhaar. If UAN is not active, one can activate it using an Aadhaar-based one-time password (OTP).
ELI Schemes:
Finance Minister Nirmala Sitharaman announced the ELI scheme in the Union Budget 2024, to give a boost to job creation by incentivising the employees (new entrants) and employers. As the government plans to disburse the benefits through direct benefit transfer, linking the bank account with Aadhaar is also necessary.
There are three schemes (A, B, and C) under ELI.
Scheme A: This scheme is for first-time employees joining the formal sector workforce under EPFO coverage. Eligible employees will receive one month's salary, up to a maximum of up to Rs 15,000, in three installments directly to their bank accounts. The first instalment will be credited upon enrollment with EPFO but the second installment will be released only after the completion of a compulsory online financial literacy course. Another eligibility requirement is that the employee's salary should be less than Rs 1 lakh per month.
Scheme B: This scheme is also for first-time employees in the manufacturing sector. The aim is to boost job creation in manufacturing by incentivising employers to hire more newcomers. Under this scheme, benefits are related to EPF contributions and will be provided over the first four years of employment. In the first two years, a subsidy of 24 per cent of the employee's wage will be shared between employees and employers, with each receiving 12 per cent. In the third and fourth years, the subsidies will be reduced to 16 per cent and 8 per cent, respectively.
Scheme C: It is for employers across all sectors. The scheme is to incentivise employers to continuously create jobs rather than doing so only for 4-5 years.
So, to receive benefits under the ELI schemes, it is important for first-time employees to activate their UAN and also link their Aadhaar with their bank accounts. To know about how to link, click here.
