EPFO’s Updated UAN Generation Process: Key Changes For Employees

From 1 August, new employees joining the Employees’ Provident Fund (EPF) scheme must generate their Universal Account Number (UAN) using Aadhaar-based face authentication. The Employees’ Provident Fund Organisation (EPFO) has made this requirement compulsory to ensure accurate and error-free registration. The change applies to all fresh UAN allotments, with the process carried out through the UMANG app. While the rule does not affect existing members, exceptions remain for certain categories such as international workers and citizens of Nepal and Bhutan.

New Digital Verification For UAN Creation

The UAN is a 12-digit unique identification code assigned to employees under the EPF scheme, essential for tracking provident fund accounts, checking balances, and filing claims. The EPFO’s latest directive introduces Aadhaar-based Face Authentication Technology (FAT) as the sole method for generating UANs for new subscribers. This step is part of the organisation’s broader push towards digital integration and identity verification to curb errors and fraudulent entries.

Process To Be Completed Via UMANG App

The mandatory authentication process will be available exclusively on the Unified Mobile Application for New-age Governance (UMANG) platform. This government-backed app brings together multiple central and state services in one place, including social welfare schemes, employment portals, and utility services. For UAN generation, users will be required to undergo a live face scan, which will be matched with their Aadhaar records to complete the verification.

Limited Exceptions Remain

While the Aadhaar-based face authentication is compulsory for most new employees, the EPFO has clarified that UAN creation through employers will still be permitted in select cases. This includes international employees and citizens of Nepal and Bhutan who may not have Aadhaar-linked credentials. For the majority of Indian employees, however, the process must follow the Aadhaar-based route.

Concerns From Staffing Firms

Industry representatives, particularly the Indian Staffing Federation (ISF), have raised concerns over the new verification rule. The federation, which represents over 1.8 million contract workers across 135 companies, pointed out that a significant number of temporary and contractual staff do not have their mobile numbers linked with Aadhaar. This mismatch can prevent them from completing the face authentication process, potentially delaying their EPF enrolment.

Potential Technical And Operational Challenges

Apart from Aadhaar linkage issues, technical factors such as varying phone camera quality, lighting conditions, and inconsistent device performance may lead to failed authentication attempts. Many workers are also unfamiliar with using mobile-based facial recognition tools, which could result in errors or repeated verification failures. Staffing agencies have indicated that these challenges may require additional support from both employers and EPFO field offices to ensure smooth implementation.

Aim To Improve Accuracy And Security

The EPFO maintains that Aadhaar-based FAT will enhance the reliability of the UAN generation process, reducing duplicate accounts and eliminating manual errors. By linking an employee’s identity directly with Aadhaar’s biometric database, the system aims to provide a more secure foundation for managing provident fund accounts and processing claims.

Preparing For The Transition

Employers and HR departments are being advised to inform new recruits about the updated rules well in advance. This includes guiding them to download the UMANG app, ensuring their Aadhaar details are correct, and verifying that their mobile numbers are linked to their Aadhaar accounts. Such preparatory steps are expected to reduce delays and complications when employees begin the UAN generation process.

Wider Push For Digital Public Infrastructure

The shift towards Aadhaar-based authentication reflects the government’s broader move to streamline service delivery through digital public infrastructure. By integrating multiple services into centralised platforms like UMANG, authorities aim to make processes faster, more transparent, and less dependent on manual intervention. For EPFO, this digital shift aligns with its long-term vision of enhancing efficiency in provident fund management.

Looking Ahead

As the new rules take effect, both employers and employees will need to adapt to the updated verification process. While the initial phase may bring certain operational challenges, the move is intended to create a stronger, fraud-resistant system for EPF enrolment. Successful implementation will depend on awareness, technical preparedness, and support from all stakeholders involved.