The Employees’ Provident Fund Organisation (EPFO) has recently introduced a significant change in its rules that will directly affect crores of salaried employees across the country. According to the new update, Universal Account Number (UAN) will not be issued without FAT verification. This move is expected to impact both employers and employees as the UAN is a mandatory requirement for Provident Fund (PF) accounts, salary-related benefits, and various employment-linked services.
What is UAN?
The Universal Account Number (UAN) is a unique 12-digit identification number allotted to every member contributing to the EPF. It acts as an umbrella for multiple PF accounts of an employee across different organizations. With UAN, employees can:
- Easily transfer PF balances from one job to another.
- Access PF statements online.
- Track contributions.
- Apply for PF withdrawals and advances.
Without UAN, employees cannot avail of these facilities, making it a critical requirement for every salaried professional.
What is FAT?
FAT stands for Final Aadhaar Testing (FAT) or Full Aadhaar Traceability (depending on EPFO’s terminology usage). It is essentially an Aadhaar-based identity verification system. FAT ensures that the UAN being generated is linked to a fully verified Aadhaar profile. This is done to eliminate duplicate accounts, fake identities, and fraudulent withdrawals from PF accounts.
The New Rule: No UAN Without FAT
As per the latest EPFO guideline:
A UAN will not be generated until FAT verification is complete.
Employees joining a new company must ensure their Aadhaar details are correct, updated, and verified before they can receive a UAN.
Employers will also have to check that FAT authentication is done before adding employees to the EPFO system.
This move is in line with the government’s push toward ensuring 100% Aadhaar-based verification in financial and employment records.
Why Has EPFO Implemented This Change?
EPFO has introduced this rule mainly for the following reasons:
1. To prevent multiple UANs – Many employees in the past ended up with more than one UAN due to Aadhaar mismatches or incorrect data entry.
2. To stop fraud and duplication – Fake accounts or fraudulent claims have been reported, and FAT will help eliminate these.
3. To strengthen Aadhaar linkage – Since Aadhaar is the backbone of India’s digital identity, this step will ensure that EPF accounts are foolproof.
4. To make PF withdrawals easier – With Aadhaar-based FAT verification, employees will face fewer hurdles while withdrawing or transferring funds.
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Impact on Employees and Employers
This change is expected to impact crores of employees across India, particularly those who are joining new jobs. Here’s how:
For Employees
Employees without updated Aadhaar details may face delays in getting UANs.
If there is a mismatch in Aadhaar details such as name, date of birth, or gender, the UAN generation will be blocked until corrected.
Those who already have a UAN linked with Aadhaar won’t be directly affected, but future updates will also require FAT verification.
For Employers
Employers will now be required to ensure FAT verification before registering new employees with EPFO.
Hiring processes might take longer if Aadhaar issues are not resolved in advance.
Companies must guide their employees to update Aadhaar details to avoid compliance issues.
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What Employees Should Do Now
To avoid problems with UAN generation under the new EPFO rules, employees should:
1. Check Aadhaar details – Ensure that your name, date of birth, gender, and mobile number are correct.
2. Update Aadhaar information – If there are errors, correct them through the UIDAI website or Aadhaar Seva Kendra.
3. Link Aadhaar with EPFO – Log in to the EPFO portal and link Aadhaar with your PF account.
4. Verify KYC documents – Make sure all KYC details, such as PAN, Aadhaar, and bank account, are updated and verified.
Conclusion
The EPFO’s decision to make FAT verification mandatory for UAN generation is a major reform aimed at ensuring transparency, security, and efficiency in the provident fund system. While this change may initially cause some inconvenience to employees and employers, in the long run, it will help prevent fraud, duplication, and delays in PF-related services.
Salaried employees are strongly advised to **update and verify their Aadhaar details immediately** to avoid disruptions in UAN generation and to secure their PF benefits without hassle.
