Universal Account Number (UAN) ACTIVATION of employees – SGC Services

In continuation to our last post, we have detailed about the Outline of Employee Linked Incentive (ELI)

1. Employment Linked Incentive Scheme A: First Timers (Para 20)

• One month’s wage as subsidy (maximum `15,000)
• Applicable to all sectors
• First timers have a learning curve before they become fully productive; subsidy is to assist employees and employers in hiring of first timers.
• Applicable to all persons newly entering the workforce (EPFO) with wage/salary less than INR 1 lakh per month.
• Subsidy will be paid to the employee in three instalments.
• Employee must undergo compulsory online Financial Literacy course before claiming the second instalment.
• Subsidy to be refunded by employer if the employment to the first timer ends within 12 months of recruitment.
• Expected to cover approximately one crore persons per annum.
• Scheme will be for 2 years

2. Employment linked Incentive Scheme B: Job creation in manufacturing (Para 21)

• Applicable for substantial hiring of first-time employees in the manufacturing sector.
• All employers which are corporate entities and those non-corporate entities with a three-year track record of EPFO contribution will be eligible.
• Employer must hire at least the following number of previously non-EPFO enrolled workers:
  • 50 or
  • 25% of the baseline (previous year’s number of EPFO employees) [Whichever is lower]

• Incentive will be paid for four years partly to the employee and partly to the employer as follows:

• Employer must maintain threshold level of enhanced employment throughout, failing which subsidy benefit will stop.
• Employee must be directly working in the entity paying salary/wage (i. e. in-sourced employee)
• Employees with a wage/ salary of up to `1 lakh per month will be eligible, subject to contribution to EPFO.
• For those with wages/salary greater than 25,000/month, incentive will be calculated at `25,000/month.
• Subsidy to be refunded by employer if the employment to first timer ends within 12 months of recruitment.
• This subsidy will be in addition to benefit under Part- A.
• Scheme will be for 2 years.

3. Employment Linked Incentive Scheme C: Support to employers (Para 22)

• Applicable to an employer who:

• Increases employment above the baseline (previous year’s number of EPFO employees) by at least two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and sustains the higher level, and
• For employees whose salary does not exceed 1,00,000/month
• New employees under this Part need not be new entrants to EPFO.

• For two years Government will reimburse EPFO employer contribution [up to] INR 3,000/month to the Employer for the additional Employees hired in the previous year.
• If the employer creates more than 1000 jobs:

• Reimbursement will be done quarterly for the previous quarter Subsidy will continue for the 3rd and 4th year on the same scale as Employer benefit in Part-B.

• Not applicable for those Employees covered under Part-B.
• This subsidy will be in addition to benefit under Part-A.
• Scheme will be for 2 years.

Thank you for reading. We hope the information was helpful to you!

Team SGC Services

NOIDA | DELHI | MUMBAI | BANGALORE

#TeamSGC #SGCSERVICES #PayrollOutsourcing

Visit us: www.sgcservices.com

Attention is invited to Circular No. ELI/UANActivation/2024 dated 22nd November 2024 ensuring the Activation of UAN by the employees including SEEDING of Bank Account Linked with Aadhar for availing the benefit under the Employment Linked Incentive (ELI) Scheme announced in Union Budget 2024-25, as announced by the Government of India in the last Finace Budget. With the guidance issued it seems to be very clear that ELI shall be passed on directly to the bank account of the members under Direct Benefit Transfer (DBT) rather than passing on the amount to the establishment. We will have to wait to get the confirmation till the time new processes are published by EPFO.

In the communication sent across to the registered establishment it has been advised that In the first stage, employers are required to complete the process of UAN activation through Aadhaar-based OTP for all their employees joining in the current financial year by 30th November 2024, starting with the latest joiners and lately for all the employees.

The activation process can be completed using an Aadhaar-based OTP (One-Time Password) by following the steps given below:

1. Go to EPFO Member Portal.

2. Click on the "Activate UAN" link under "Important Links".

3. Enter UAN, Aadhaar number, name, DOB, and Aadhaar-linked mobile number.

4. Employees should ensure their mobile number is Aadhaar-linked

5. Agree to Aadhaar OTP verification.

6. Click "Get Authorization PIN" to receive an OTP on your Aadhaar-linked mobile number.

7. Enter the OTP to complete the activation

8. A password will be sent to your registered mobile number upon successful activation.