Earlier this year, the EPFO undertook a revolutionary decision and made it compulsory for all its EPFO accounts to be linked to the Aadhar numbers of the account holders. The initial deadline to complete the seeding of Aadhar to the EPFO accounts was April 30th however; there is no need to stress if you have not linked your account because the EPFO has extended the EPFO – Aadhar Linking deadline. Read to know more about the same.
EPFO – Aadhar Linking Deadline has been extended to June 30th
The EPFO made a very important announcement recently which has come as a big relief for their over four crore members. The EPFO has extended the deadline for its members to submit their Aadhar numbers which are to be seeded to their accounts. The latest deadline to furnish an Aadhar number is 30th June, 2017.
However, this deadline will not be applicable in the North-eastern states of the country. The pensioners and subscribers of EPFO from the North-eastern states have to submit their Aadhar numbers by 30th September, 2017. The deadline has been revised due to the extremely slow progress over the submission of Aadhar numbers.
The employers will have to furnish Aadhar numbers for all the new members who join the Employees Pension Scheme (1995) from July 1st, 2017 barring the North-eastern states where it would be applicable from 1st October 2017.
The field officers have been instructed to ensure the seamless completion of this compulsory task.
EPFO – Aadhar Linking: Why was this decision taken?
The Provident Fund which is collected in every members EPFO account is a result of the contribution of two prominent contributors- The Employer and the Government. Every employer deposits 8.33 percent in the EPFO account of the Employee every month while the government also makes a contribution of 1.16 percent of basic wages to every EPFO account holder under the Employees’+ Pension Scheme Account.
Since the Government is providing for subsidy to the EPFO account holders, it organically invokes the section 7 (Targeted Delivery of Financial and other Subsidies, Benefits and Services) of the Aadhar Act, 2016 which states where the Government provides for subsidy, service or benefit from the Consolidated Fund of India, the individual may be asked to undergo authentication or furnish proof of possession of an Aadhar Card.
EPFO-Aadhar Linking: How Will it Help?
Aadhar Linking drive is being undertaken by the Employees’ Provident Fund Organization for already existing accounts and for new enrollment, here are a few reasons how it can prove helpful:
- Using Aadhar as a KYC(Know Your Customer) document is a safe mode to verify the details of every account holder efficiently.
- Seeding of the accounts with a Unique Identification Number like that of Aadhar reduces any chances of the duplicity of accounts.
- Aadhar is an ideal KYC as it is both a proof of identity and an address proof in itself, this avoids the hassle of providing too many documents for the purpose of KYC
We hope this article was helpful. For the latest news and other such informative articles, watch this space for more!