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The Employees' Provident Fund Organisation (EPFO) has asked people to activate their Universal Account Numbers (UAN) and link it with Aadhaar and bank accounts by November 30, 2024. The step is essential to ensure employees receive direct benefit transfer (DBT) of the Employment Linked Incentive (ELI) scheme directly into their bank accounts, according to a circular.
However, some employees may have missed the deadline to complete the activation and linkage of their UAN by November 30.
What is the ELI scheme?
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The Employment Linked Incentive (ELI) scheme, introduced in Union Budget for 2023-24, seeks to create more than 20 million jobs in two years by incentivising formal-sector employment.
The scheme has three components:
Scheme A of the ELI offers one-month wage as a direct benefit transfer to individuals newly joining the formal workforce. This benefit, provided in three instalments, is applicable to first-time employees registered with the EPFO, with a maximum limit of Rs 15,000. To qualify, the employee's monthly salary must not exceed Rs 1 lakh.
Scheme B is meant for manufacturing employers with a three-year EPFO contribution history. Employers must hire at least 50 new employees or 25 per cent of their workforce. Incentives are disbursed over four years: 24 per cent of wages for two years, 16 per cent in the third year, and 8 per cent in the fourth year. Employees must earn up to Rs 1 lakh per month.
Scheme C is an employer-centric programme designed to support additional employment across all sectors. It covers new employment with a monthly salary of up to Rs 1 lakh. Under this scheme, the government will reimburse employers up to Rs 3,000 per month per additional employee for two years, contributing towards their EPFO payments.
What employees can do now to avail ELI scheme benefit
“Employees who have missed the deadline to link UAN for ELI should go ahead and activate the UAN on the EPFO Portal. Given that implementation of the ELI schemes is yet to be notified, the portal is yet to be set up and the fact that a short notice was provided for the completion of mandatory UAN, the EPFO/Labour Ministry may consider granting an extended timeline or relaxation around linking UAN to eligible employees,” said Adil Ladha, partner at Saraf and Partners.
“You can activate UAN via the EPFO member portal, link Aadhaar under the ‘KYC’ section, and ensure your bank details are updated. Communication with employers for assistance is crucial, as they can facilitate updates and coordinate with EPFO for any required approvals. Additionally, employees can visit EPFO offices for manual support or raise grievances via EPFiGMS (Employees' Provident Fund Grievance Management System) for guidance. Employers should proactively support the process to avoid disruptions in employee benefits,” said PV Ramana Murthy, head of labour and employment at Economic Laws Practice.
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