Shishir Arya | Jul 21, 2015, 03.24AM IST
Nagpur: Employees Provident Fund Organisation (EPFO) is planning to launch a facility of online settlement of claims for its subscribers but this subject to at least 50% of unique account numbers (UAN) allotted by it to over 4.5 crore employees being activated. A deadline of August end has been set for the job. With this, even other subscribers are expected to be motivated for getting their number activated.
UAN is an ambitious project planned over a year ago but EPFO, also billed as the world's largest social security organization, is grappling to get it going. UANs have been allotted to almost all 4.5 crore private sector workers covered under EPFO. But no more than 15% have been activated yet. Employers, who are supposed to provide the KYC details that include Aadhaar number, PAN, bank account or driving licence for activation, are not keen on doing their bit.
In a meeting held over a week ago, it was decided to launch a special drive by contacting all major establishments and ensure that the UANs were activated. The work is planned to be completed by August end.
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The accounts have to be settled if an employee retires or changes job. In this case online settlement will have to be done through the employer. This is because the employers' digital signature will be needed for access.
"There are also plans to allow the employees to directly deal with the online claims if their Aadhaar number is seeded with the activated UANs," said a source in the ministry of labour. "After this, if 50% of the accounts are Aadhaar linked, then a facility for direct online settlement will be made available."
This is because Aadhaar using biometrics is considered the best means of identification. "With enough Aadhaar penetration in the country, it is expected a majority of subscribers may have one," said the source.
It is learnt that in Nagpur region itself, 33% of over 4.30 lakh UANs allotted are now Aadhaar linked. The national average is expected to be in the same bandwidth, the source said. The employees can provide other details like PAN, Bank Account or driving licence too. As per the plan if those with Aadhaar get direct facility, even others will be encouraged to provide the number, said the source.
Everything hinges on getting the numbers activated. A carrot and stick approach has been adopted. It is mandatory for the employers to cooperate in providing the details or else they face prosecution. Even the employees are being encouraged to insist on getting their number activated. Officials expect a large number of UANs to be activated during the drive.
With a UAN, an employee could keep tab on payments in his accounts. That may be why employers were reluctant to comply, said sources.
In a Nutshell
* Project UAN is over a year old
* It provides direct access to PF accounts and also online settlement
* Almost all 4.5 crore workers have UAN
* Only 15% of those activated as employers yet to provide details
* If at least 50% UANs are activated, online settlement will begin
* If 50% also get linked with Aadhaar, direct settlement can be done