Employers to get incentive for providing UAN to EPFO subscribers

NEW DELHI: The Employees' Provident Fund Organisation has announced an Incentive Refund Scheme that encourages employers to provide Universal Account Numbers (UAN) to all employees, a step aimed at bringing transparency and accountability to the EPF system.

The scheme will enable employers to claim a refund of up to 10% of the administrative charge paid by them in each quarter, provided they qualify for it based on certain criteria.

The scheme will be effective from January 1to December 31, 2016, a labour ministry notification said last month.

UAN offers easy portability of PF accounts between employers. It also allows members to view their EPF accounts with current and former employers.

If a company has provided member account details of 80% of its workforce to the retirement fund body and linked 80% of the accounts to Aadhaar as well as 100% to bank accounts and PAN numbers wherever applicable, it will be eligible for a refund of 10%, provided also that it has given UAN to all the members whose details have been furnished with the EPFO.

An establishment that has provided details of at least 60% of employees will be eligible for a refund of 5% on the administrative charge, if 70% of the accounts are linked to Aadhaar and 100% to bank accounts and PAN. The employer also has to provide UAN to at least 60% of its workforce.