EPFO update: Aadhaar not mandatory for claims; see full list of new rules

The EPFO, in its circular highlighted that 'due diligence' should be exercised in cases of those claiming exemption

The Employees' Provident Fund Organisation (EPFO) has issued a circular announcing that specific categories of employees are exempt from linking their Aadhaar with their UAN (Universal Account Number) for processing physical claims. EPFO subscribers are generally required to seed their Aadhaar to their UAN for claim settlements.

 

The exempted categories of workers are as follows:

 

International workers: Individuals who completed their assignments in India and returned to their home countries without obtaining an Aadhaar.

 

Indians with foreign citizenship: Former Indian nationals who migrated abroad, acquired foreign citizenship, and do not hold an Aadhaar.

 

Nepali and Bhutanese citizens: Persons considered ‘employees’ under the EPF&MP Act but residing outside India and lacking an Aadhaar.

 

For these categories, alternative documents like passports or citizenship certificates will be used for verification.

 

The EPFO also emphasised the need for thorough due diligence in cases where employees are exempted from linking Aadhaar with their UAN for physical claim settlements. Officials must document all verification details and secure approval from the Office In-Charge (OIC) through an e-office file before processing such claims. Additionally, it is mandatory to verify all bank accounts associated with the claims. For claims exceeding Rs 5 lakh, officials may seek confirmation from the employer. Settlements will be processed via NEFT to ensure safe and secure credit transfers.

 

The EPFO recently clarified that employees must retain a single UAN throughout their career, regardless of job changes or periods of unemployment. Generating a new UAN is not permitted.

 

Employees are advised to prevent complications related to holding multiple UANs by transferring all past service records linked to previous UANs to their current UAN. This can be done using the One Member One EPF Account feature available on the EPFO portal.