Anyone entering the formal sector workforce from March will have to get a UID number before they can enroll with the Employees’ Provident Fund. The EPFO will use Aadhaar to issue individual account numbers to its members, independent of employers.
“The Aadhaar platform can be leveraged to improve the services of EPFO by using it as a KYC (Know Your Customer) credentials for EPF members. It has been decided to make the Aadhaar numbers mandatory for new members,” the EPFO said in a note to all field offices. For the existing 8.15 crore members, EPFO plans to link Aadhaar numbers with PF accounts by June 30.
Contractual employment and frequent migration of employees has meant multiple provident fund accounts for most members. Of the nearly 1 crore claims received annually, about 90 lakh relate to transfer or settlement of accounts, the EPFO says.
“Most of our work is focussed on tracking individual account members or transfer of accounts,” said an official, adding that switching to Aadhaar would allow it to focus on other areas of service delivery. EPFO has directed its field offices to contact local UIDAI authorities to set up enrolment camps in industrial areas. Employers must collect Aadhaar details of new employees and send them to the EPFO.
EPFO will link enrolment IDs of existing members to Aadhaar numbers, said the order signed by Central Provident Fund Commissioner Anil Swarup.