Work seekers entering the Employment Linked Incentive (ELI) scheme need to activate their Universal Account Number (UAN) and confirm that their Aadhaar has been linked to their bank accounts. The deadline for implementation of this process is November 30th, 2024.
The Ministry of Labour and Employment has appealed to the employers that all such employees who have joined (including the newly inducted ones) should have their UAN activated along with Aadhaar enrolment in their bank account(s) by November 30, 2024. [This is] mandated, as the accumulated benefit under the ELI scheme will be directly remitted to the beneficiary as per a circular dated 22.11.
Mandatory UAN Activation and Aadhaar Linkage for ELI Scheme: Here’s What You Need to Know
Employees’ Provident Fund Organisation (EPFO) has denied the rumour that employees can access a suite of services and benefits under the ELI scheme by activating UAN and connecting it with Aadhaar through the UAN.
According to the EPFO, each subscriber must have a UAN along with an Aadhaar and activate the same through the Member Portal. This stage allows workers to verify the PF passbooks, lodge claims, correct personal information, and monitor current claims in real time. Employees can also do Aadhaar-based OTP activation of UAN.
Akshay Jain, a partner at Saraf and Partners, explained that linking Aadhaar with UAN is essential for withdrawing funds and receiving EPFO benefits. The new rule may help to identify people and transfer the benefits under the ELI scheme more conveniently, especially for those who are accessing the benefits scheme for the first time.
He mentioned that although the full details of the ELI scheme are still pending, employers should make sure to follow the rules to prevent any delays in the process.
How to Activate Your UAN in Minutes: A Simple Guide
To activate your UAN, just follow the following basic steps provided by the EPFO:
https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- Find and clickthrough to “Activate UAN” in the “Important Links” section.
- Enter your UAN, Aadhaar ID, date of birth, and Aadhaar registered mobile number.
- Tap on “Get Authorisation PIN” and enter the OTP received by the registered mobile number.
- After confirmation, an authentication password will be sent to your mobile.
To get the maximum benefits of the ELI scheme, this process helps you to link your UAN properly.
What Exactly is the ELI Scheme, and How Does It Work?
The Employment Linked Incentive (ELI) scheme (proposed in the 2024 Union Budget) will aim to generate more than 20 million jobs in the next 2 years. By encouraging formal employment, the scheme represents a win-win for both employees and employers, opening the way not only for good jobs but also for the economy.
The scheme has three components:
Scheme A. The ELI Scheme provides a subsidy equal to one month’s salary (up to Rs 15,000) for employees who are registering with EPFO for the first time and earn less than Rs 1 lakh per month. Employers are obliged to keep these employees for a minimum of 12 months in order not to refund any of the subsidy.
Scheme B. 24% of the first 2-year wage, 16% of the 3-year wage, and 8% of the 4-year wage. In this scheme, employees shall have a monthly emolument not exceeding Rs 1 lakh. This initiative is designed to boost employment while benefiting both employers and employees under the ELI Scheme.
Scheme C. is applicable to a small or large employer and enables them to scale up the size of their workforce by employing at least two or five additional employees, depending on the size of the companies. Employers will be reimbursed up to Rs 3,000 per month towards the EPFO contribution of the new inductees whose salary during the month is not more than Rs 1 lakh. This scheme is part of the ELI (employment-linked incentive) to encourage placement.
The UAN and ELI Scheme is intended to help millions of young people, provide vocational skills to 2 million young people, provide internship jobs for 10 million people, and promote gender equality by means of special programs. These practices are set to equality between men and women (providing women´s hostels and skills-based opportunities) to create a more equitable and inclusive workforce.
The Hidden Benefits of the UAN & ELI Scheme for Employees and Employers
Sandeep Agrawal, the director and founder of Teamlease Regtech, shared that the UAN and ELI schemes are designed to help employees and promote long-term job security. He explained how first-time (in the system) workers under Scheme A can be entitled to a wage subsidy and workers on Schemes B and C can obtain indirect benefits. These programs encourage employers to take on more jobs and create new employment, and these, in turn, help the workforce.
Agrawal reported the relevance of financial literacy courses and internships in order to fill the knowledge competency gap between the classroom and the employer requirements in the workforce. This could provide people with the practical experience that they will ultimately have to progress in their own careers.
Employees who are yet to associate their Aadhaar with the bank account may not be beneficiaries of the UAN and ELI schemes. Employers are also responsible for supporting employees to go through the required stage so as to avoid any difficulty in the award of these incentives.