Employees Provident Fund (EPF) subscribers now have until September to link their Aadhaar card to the Provident Fund (PF) accounts. The Employees’ Pension Fund (EPFO) has made it mandatory to link the Aadhaar Card to the PK UAN (universal account number) in order to receive PK contributions from employers and other benefits. The deadline has been postponed from June 1, 2021 to September 1, 2021. The Ministry of Labor amended Section 142 of the Social Code 2020 to implement this new regulation. Section 142 provides for the identity of an employee or an unorganized worker or other person to be determined via the Aadhaar number in order to receive benefits under the code and to use services.
“Linking PAN and Aadhar Card is a basic Know Your Customer (KYC) requirement of all banks, PPF accounts and EPF accounts. If this does not happen, interest credits from employers and disbursement requests from you PF accounts are confronted with problems such as rejection as an enforcement measure. This is a fundamental enforcement action, “said Vidisha Krishan, partner at law firm MV Kini.
“The Social Security Code 2020 is a law amending and consolidating social security laws with the aim of extending social security to all workers and workers in organized / unorganized or other sectors. Although the Code has not yet been implemented, Section 142 of the Code was amended on March 3 to receive benefits or payments under various programs, “said Amrita Tonk, partner at L&L Partners.
The implementation date for filing ECR (Electronic Challan Cum Receipt or PF Return) with Aadhaar-verified UANs was also up to 1. The Pension Authority previously said that the employer can only file ECR for those employees who have their Aadhaar on PK UAN have bound. “The employer can submit a separate ECR for non-aadhaar-seeded UAN after the aadhaar seeding process is complete,” he added.
You will also lose other EPF benefits if your aadhaar data is not updated. This includes accepting COVID-19 advances announced last month and insurance benefits associated with PF accounts.
“Linking Aadhar to the UAN is mandatory. As of September 1, 2021, employers will no longer be able to transfer PF in cases where such a link is not made, ”said Saraswathi Kasturirangan, partner at Deloitte India. Application for advances, withdrawals, etc. So it becomes critical to establish the identity of the beneficiary and Aadhaar is insisted, “he added.
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