In a move offering relief to lakhs of formal sector workers, the Employee Provident Fund Organisation (EPFO) on Tuesday extended the mandatory seeding of Aadhaar details with employees’ records for monthly statutory EPF payment.
What’s The New Deadline?
Earlier, EPFO directed the employers that Electronic Challan cum Return (ECR) is allowed for only those EPFO members whose Aadhaar account is seeded. The employer was required to link every employee's account with the Aadhaar card within June 1.
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It meant that if an EPF account is not linked to the account holder's Aadhaar number, then the employer's contribution won't get credited to such an EPF account. Besides this, the EPF account holder won't be able to avail of the EPFO services for EPF account holders.
However, the date of implementation for filing ECR (electronic challan cum receipt or PF return) with Aadhaar verified UANs has been extended to September 1, 2021, according to the new order.
This will give more time to employers to link their employee's Aadhaar number with PF accounts or UAN.
Why is seeding important?
The EPFO had made Aadhaar seeding compulsory after a labour ministry issued a notification on May 3. According to the notification, the ministry and bodies working under it sought Aadhaar number from the beneficiaries under the Social Security Code.
The Code was cleared by Parliament in 2020. "... the central government hereby appoints the 3rd day of May 2021 as the date on which the provisions of section 142 of the said Social Security Code shall come into force," the notification had said.
Section 142 provides for establishing the identity of an employee or an unorganised worker or any other person through Aadhaar number for seeking benefits and availing services under the Code.