Now, Employees’ Provident Fund (EPF) customers will have time till September to link their Aadhar card with Provident Fund (PF) accounts. The Employees’ Provident Fund Organization (EPFO) has made it mandatory to link Aadhaar card with PF UAN (Universal Account Number). PF Contribution from employers and other benefits. The deadline was postponed from June 1, 2021 to September 1, 2021. The Ministry of Labor amended Section 142 of the Social Security Code 2020 to implement this new rule. Section 142 provides for the establishment of the identity of an employee or an unorganized worker or any other person by means of Aadhaar number for receiving benefits and availing services under the Code.
“Linking of PAN and Aadhaar card is a basic requirement of Know Your Customer (KYC) for all banks, PPF accounts and. EPF accounts. Failure to do so will lead to issues like interest credit and rejection of withdrawal claims from your PF accounts by employers as an enforcement measure. This is a basic enforcement measure,” said Vidisha Krishna, partner at law firm MV Kini.
“The Social Security Code, 2020 is a law to amend and consolidate the laws relating to social security, aiming to provide social security to all employees and workers in the organized/unorganized or any other sector. Though the Code is yet to be implemented, Section 142 of the Code has been notified by the Ministry of Labor and Employment on June 3, which states that the Aadhaar number is to be provided by employees and workers in the unorganized sector who Are seeking registration, said Amrita Tonk, partner, L&L Partners, “expected to receive benefits or any payment under various schemes.”
EPFO in a notification said that the date for filing ECR (Electronic Challan cum Receipt or PF Return) with Aadhaar verified UAN has also been extended till September 1, 2021. The retirement body had earlier said that the employer can file ECR only for those employees who have linked their Aadhaar with PF UAN. After completion of Aadhaar seeding process, employer can file separate ECR for non-Aadhaar seeded UAN.
If your Aadhaar details are not updated then you will also be deprived of other EPF benefits. This includes COVID-19 advances announced last month and insurance benefits linked to PF accounts.
“Linking of Aadhaar with UAN is mandatory. With effect from September 1, 2021, employers will not be able to send PF for cases where such linking is not done,” said Saraswati Kasturirangan, partner, Deloitte India. EPFO is moving towards an online approach for all benefits, irrespective of Be it KYC updation, requests for advances, withdrawals etc. Hence it becomes important to establish the identity of the beneficiary, and the emphasis is on Aadhaar.”
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