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EPFO and SC differ on linking Aadhaar and PF accounts

While EPFO says it is mandatory to link Aadhaar to PF accounts, the SC ruling says it is optional.

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HRK News Bureau
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October 31, 2019
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    Many technology companies have sought Government intervention because their employees refuse to link their Aadhaar numbers with their provident fund (PF) accounts, because the Supreme Court (SC) had made this linking optional. However, the Employees’ Provident Fund Organisation (EPFO) has directed these companies get their staff to link their unique identification number with their PF accounts, without which they will be unable to avail benefits.

    With several employees preferring to follow the SC ruling, companies are finding it difficult to adhere to the mandate of EPFO. Not very long ago, the EPFO had filed a criminal complaint against JP Morgan for not furnishing the Aadhaar details of its employees. However, the Company had approached a division bench to quash the complaint filed against it and was also granted interim relief. A software professional has also moved the Madras High Court challenging the notification that makes linking of Aadhaar to universal account number (UAN) compulsory for a person to avail pension and other PF benefits.

    Last year, the SC had ruled that linking Aadhar cannot be made compulsory for delivering various services, including pension. However, EPFO argues that the Unique Identity Authority of India (UIDAI) had issued a notification permitting use of Aadhaar-based authentication for employee provident funds accounts. The Employees’ Provident Fund Organisation (EPFO) offers an online facility to link a person’s Aadhaar number with their PF account through their web page, Unified Portal of Employees’ Provident Fund.

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