EPFO Announcement: Aadhaar Linkage not Required for Certain Claims, Check out New Guidelines

Aadhaar linkage is not required for International Workers, Indian Workers with foreign citizenship, and Citizens of Nepal and Bhutan for claim settlements
By Kavi Priya - On December 3, 2024 11:04 am - 2 mins read
EPFO - Aadhaar Linkage - EPFO Aadhaar linkage update - EPFO Announcement on Aadhaar linkage - TAXSCAN

The Employees’ Provident Fund Organisation ( EPFO ) has issued a new circular to address problems with linking Aadhaar to Universal Account Numbers ( UAN ) for certain employees. This follows feedback from field offices about difficulties in Aadhaar authentication which led to delays in claim settlements and grievances.

The EPFO has updated the guidelines allowing certain members to settle claims without linking Aadhaar to their UAN:

Who is Exempted:

  • International Workers: Employees who had left India without getting an Aadhaar can use their passports.
  • Indians with Foreign Citizenship: Former Indians who moved abroad, got foreign citizenship, and don’t have Aadhaar can use their citizenship certificates.
  • Nepali and Bhutanese Citizens: Employees under the EPF&MP Act, living outside India without Aadhaar, can use their citizenship documents.

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What they Need:

These members must submit physical claims with ID and bank details. The following checks are necessary:

  1. Verification of bank accounts.
  2. Employer confirmation if the claim exceeds Rs. 5 lakh.
  3. Claims will be settled through NEFT for safe transfers.

Also, the EPFO clarified that Non-Resident Indians (NRIs) with valid Indian passports can apply for Aadhaar at any center, and the 182-day stay rule doesn’t apply to them.

Table

CategorySubstitute IDMode of SubmissionMode of SettlementRisk Mitigation Measures
International Worker (IW) who have left India without obtaining Aadhaar                            Passport            Physical copy of Substitute ID enclose to the physical claim along with other relevant required documents including Bank A/c details.  Physical ModeDue Diligence –   1. Verification of bank account in all cases   2. Confirmation of identity (identification documents) by Employer only if the balance exceeds Rs.5 lakh     3. Mode of credit of settlement amount to the designated Bank Account   By NEFT
Indian Worker who permanently migrated to a foreign country & subsequently obtained its citizenship
Citizens of Nepal and subjects of Bhutan who fall within the definition of employee and do not reside in IndiaCitizenship Identification Certificate/Document 
For Non-Resident IndiansAny NRI (whether minor or adult) with a valid Indian Passport can apply for Aadhaar from any Aadhaar Enrolment Centre. In the case of NRIs, the residential condition of 182 days is not mandatory.  

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These members need to have a UAN, they don’t need to link it with an Aadhaar because they can’t get an Aadhaar now.

Their physical claims should be accepted and processed for final settlement by verifying their identity using alternate IDs like:

  • Passport for International Workers
  • Citizenship Identification Certificate for Nepalese and Bhutanese workers
  • PAN
  • Bank Account details

Officials must carefully verify these documents, record all details, and get approval from the Office in charge ( OIC ) before processing the claims.

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