The Employees’ Provident Fund Organization (EPFO) has issued a significant announcement in its latest circular. The deadline to activate the Universal Account Number (UAN) and connect bank accounts with Aadhaar for employees under the Employees’ Provident Fund (EPF) has been pushed from 30 November 2024 to 15 December 2024. This action has been implemented as part of the Employment Incentive Scheme (ELI). The ELI program seeks to encourage formal job creation and alleviate financial burdens on employers. It was introduced in the Union Budget 2024.
Scheme A: For the first time, employees in the formal sector will receive support totaling Rs 15,000 in three salary installments. This advantage will be provided to employees who earn Rs 1 lakh per month or lower.
Scheme B: To enhance job opportunities in the manufacturing industry, EPFO contributions from both employees and employers will receive subsidies for the initial four years.
Scheme C: For each new employee earning a maximum of Rs 1 lakh monthly, the employer will receive reimbursement of up to Rs 3,000 monthly for a duration of two years. This advantage is accessible to all industries.
Why UAN activation and Aadhaar linking is so important?
EPFO has urged employers to finalize the UAN activation and Aadhaar linking for all employees added in this financial year. Particularly for new hires, this procedure ought to be finalized swiftly so they can take advantage of the ELI program benefits. The deadline extension will provide employers and employees additional time to meet the requirements. The aim of this modification is to provide employees and employers a chance to fully benefit from this program initiated by the government. The ELI program is anticipated to generate approximately 2 crore new jobs over the next two years, which will greatly aid in the nation’s economic growth and job creation.