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New rule on Provident Fund Accounts. Major changes to be made from June 1 onwards

By Vasima Kazi June 1, 2021
New rule on Provident Fund Accounts. Major changes to be made from June 1 onwards
Image source: Mint
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Keypoints:

  • Employer has to ensure that their employees link their Provident Fund account with their Aadhaar card, thus making their account Aadhaar verified.
  • Failure to do so will lead to stoppage of contribution of employer credited to your account.
  • If the accounts of PF account holders are not Aadhaar linked, they will be unable to use the services of EPFO.

A few changes in the rules for Provident Fund Account holders has been made by Employees’ Provident Fund Organization (EPFO) and the rules are set to come into force from June 1,2021.

The employer will now have to ensure that their employees link their Provident Fund account with their Aadhaar card. Failure to do so will result in employer’s contribution being restricted to go into the employee’s account.

It has been mandated by the Ministry of Labour and Employment that a 12-digit Aadhaar number has to be submitted by the employees and organised sector workers who seek registration, benefits or, are expecting to receive any payment under various schemes under section 142 of Social Security Code 2020. In this regard, the ministry issued a notification on May 3.

Labour Secretary Apurva Chandra itold PTI that, “Now, we will start asking for Aadhaar numbers from beneficiaries under the Social Security Code. This is also required for our database for unorganised sector workers, including migrant workers. However the delivery of services under various social security schemes would not be denied due to non-submission of Aadhaar.”

The ministry said that the main motive behind the move is to create a database for the employed workers in the unorganised sector.

Section 142 deals with establishing the identity of employees and unorganised workers through Aadhaar number for availing benefits and services under the Social Security Code.

Employers have been notified by EPFO that from June 1, if Provident Fund accounts are not linked with Aadhaar cards, then the ECR (electronic challan-cum-return) will not be filled.

Employer’s share will NOT be deposited but employees can continue to make contributions in their Provident Fund accounts.

Here’s how you can do it,

  • Go to official EPFO website by clicking on the link- www.epfindia.gov.in and log in.
  • Click on Online Services – e-KYC Portal – link UAN Aadhar.
  • Upload your UAN number and mobile number registered with UAN account.
  • You will receive an OTP number on your mobile number. Enter the OTP number in the OTP box, enter your 12 digit Aadhaar number and submit the form.
  • Click on the Proposed to OTP verification option.
  • Generate OTP on the mobile number or mail linked with your Aadhaar to verify your Aadhaar details.

 

Vasima Kazi

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Tags Aadhaar card PF account Provident Fund

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