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Time of India
5 days ago
- Business
- Time of India
Major EPFO update: New FAT rule delays payroll, UAN generation; are you impacted?
What is UAN? Academy Empower your mind, elevate your skills Payroll disruption on joining and exits UAN creation restrictions Technical limitations Impact on compliance timelines Risk of employment loss due to incomplete UAN generation The Indian Staffing Federation (ISF), which represents more than 1.8 million contract workers across 135 member companies in the country, has expressed urgent concerns regarding a recent mandate from the Employees' Provident Fund Organisation (EPFO) that requires the use of facial authentication technology (FAT) through the UMANG app for generating Universal Account Numbers (UANs).In a recent circular, the Employees' Provident Fund Organisation (EPFO) announced that, starting August 1, 2025, all allotment and activation of Universal Account Numbers (UANs) should be done through the UMANG app using face authentication technology (FAT).The EPFO assigns the Universal Account Number, commonly referred to as UAN. The UAN serves as a unifying identifier for the multiple member IDs assigned to an individual by different read: EPFO UAN generation: Only EPF members can generate PF Universal Account Number now on Umang application In a press release on August 5, 2025, the Indian Staffing Federation (ISF) underscored that the change regarding the FAT rule has already stalled onboarding for more than 1,000 candidates in just two days, disrupting payroll cycles and compliance are the challenges faced by staffing companies that created immediate hurdles in UAN generation, and the solution suggested by ISF:Staffing companies employ a significant number of temporary workers, which is characterised by frequent onboarding and departures. The mandatory FAT for KYC updates requires each worker's participation, making coordination across locations difficult. Many lack smartphones or reliable internet, causing UAN delays that disrupt salary payments and PF contributions, especially in MSMEs and high-turnover restriction on employer-led UAN creation without Aadhaar seeding, coupled with the FAT rule, slows bulk onboarding, delays PF credits, and jeopardises compliance. It also reduces employee trust by preventing timely access to EPFO services and EPF FAT system relies on digital infrastructure, which is often inaccessible to contractual workers in remote areas or those unfamiliar with digital platforms. Technical glitches, such as facial recognition failures or server downtimes, further delay EPFO's deadline for Aadhaar seeding and FAT compliance (e.g., June 30, 2025, as per recent updates) is challenging for staffing companies managing thousands of employees. Non-compliance risks penalties or withheld PF contributions, which could adversely affect both employers and an employee fails to generate a UAN via UMANG due to technical or awareness barriers, it may delay compliance with PF onboarding requirements and may lead to the denial or delay of employment offers, especially for first-time per the ISF press release, 'Many workers do not have updated Aadhaar mobile numbers or face biometric mismatches, making facial authentication infeasible in practice. Successful facial authentication relies on camera quality, lighting, and stable network access—factors not uniformly available across all work locations.'To address these challenges while aligning with EPFO's objectives, ISF has proposed the following:For first-time employees without a UAN, employers should be allowed to create it through the employer portal to enable timely PF registration and ensure compliance.A six-month window for digital onboarding and FAT awareness is proposed. Since financial incentives (such as ELI-based benefits) are available only after six months of PF membership, this period can be used by employers to:• Educate employees about EPFO, UAN, and the UMANG app.• Facilitate FAT registration with proper support and to the ISF press release, 'Reinstate the flexibility for employers to generate UANs in bulk without mandatory FAT or Aadhaar seeding at the initial stage, as permitted earlier. This would enable staffing companies to comply with PF contribution timelines while gradually completing FAT requirements.''Offer dedicated technical support for FAT-related issues and ensure the EPFO portal is equipped to handle high volumes of authentication requests without disruptions. Additionally, provide multilingual training resources to educate contractual workers on the FAT partial exemptions or simplified compliance procedures for staffing companies and industries with high workforce turnover, balancing security needs with operational realities,' ISF added
Economic Times
5 days ago
- Business
- Economic Times
Major EPFO update: New FAT rule delays payroll, UAN generation; are you impacted?
ET Online EPFO UAN generation via FAT The Indian Staffing Federation (ISF), which represents more than 1.8 million contract workers across 135 member companies in the country, has expressed urgent concerns regarding a recent mandate from the Employees' Provident Fund Organisation (EPFO) that requires the use of facial authentication technology (FAT) through the UMANG app for generating Universal Account Numbers (UANs). In a recent circular, the Employees' Provident Fund Organisation (EPFO) announced that, starting August 1, 2025, all allotment and activation of Universal Account Numbers (UANs) should be done through the UMANG app using face authentication technology (FAT). What is UAN? The EPFO assigns the Universal Account Number, commonly referred to as UAN. The UAN serves as a unifying identifier for the multiple member IDs assigned to an individual by different establishments. Also read: EPFO UAN generation: Only EPF members can generate PF Universal Account Number now on Umang application In a press release on August 5, 2025, the Indian Staffing Federation (ISF) underscored that the change regarding the FAT rule has already stalled onboarding for more than 1,000 candidates in just two days, disrupting payroll cycles and compliance are the challenges faced by staffing companies that created immediate hurdles in UAN generation, and the solution suggested by ISF: Payroll disruption on joining and exits Staffing companies employ a significant number of temporary workers, which is characterised by frequent onboarding and departures. The mandatory FAT for KYC updates requires each worker's participation, making coordination across locations difficult. Many lack smartphones or reliable internet, causing UAN delays that disrupt salary payments and PF contributions, especially in MSMEs and high-turnover sectors. UAN creation restrictions The restriction on employer-led UAN creation without Aadhaar seeding, coupled with the FAT rule, slows bulk onboarding, delays PF credits, and jeopardises compliance. It also reduces employee trust by preventing timely access to EPFO services and EPF registration. Technical limitations The FAT system relies on digital infrastructure, which is often inaccessible to contractual workers in remote areas or those unfamiliar with digital platforms. Technical glitches, such as facial recognition failures or server downtimes, further delay compliance. Impact on compliance timelines The EPFO's deadline for Aadhaar seeding and FAT compliance (e.g., June 30, 2025, as per recent updates) is challenging for staffing companies managing thousands of employees. Non-compliance risks penalties or withheld PF contributions, which could adversely affect both employers and employees. Risk of employment loss due to incomplete UAN generation If an employee fails to generate a UAN via UMANG due to technical or awareness barriers, it may delay compliance with PF onboarding requirements and may lead to the denial or delay of employment offers, especially for first-time earners. Other issues As per the ISF press release, 'Many workers do not have updated Aadhaar mobile numbers or face biometric mismatches, making facial authentication infeasible in practice. Successful facial authentication relies on camera quality, lighting, and stable network access—factors not uniformly available across all work locations.'To address these challenges while aligning with EPFO's objectives, ISF has proposed the following: Allow employers to generate UAN for first-time joiners For first-time employees without a UAN, employers should be allowed to create it through the employer portal to enable timely PF registration and ensure compliance. Extend compliance deadlines A six-month window for digital onboarding and FAT awareness is proposed. Since financial incentives (such as ELI-based benefits) are available only after six months of PF membership, this period can be used by employers to:• Educate employees about EPFO, UAN, and the UMANG app.• Facilitate FAT registration with proper support and communication. Allow bulk UAN generation without immediate FAT According to the ISF press release, 'Reinstate the flexibility for employers to generate UANs in bulk without mandatory FAT or Aadhaar seeding at the initial stage, as permitted earlier. This would enable staffing companies to comply with PF contribution timelines while gradually completing FAT requirements.' Enhance technical support and infrastructure 'Offer dedicated technical support for FAT-related issues and ensure the EPFO portal is equipped to handle high volumes of authentication requests without disruptions. Additionally, provide multilingual training resources to educate contractual workers on the FAT partial exemptions or simplified compliance procedures for staffing companies and industries with high workforce turnover, balancing security needs with operational realities,' ISF added N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. 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Time of India
5 days ago
- Business
- Time of India
Mills' Association urges EPFO to revert to old way of generating UAN
Coimbatore: The Southern India Mills' Association (SIMA) has urged the Employees' Provident Fund Organization ( EPFO ) to withdraw its recent circular mandating the allotment and activation of Universal Account Numbers (UANs) exclusively through the UMANG application, citing technical glitches and operational delays. In a circular dated July 30, the EPFO mandates that UAN allotment and activation must be done through the UMANG app using facial authentication technology. In a letter to Central Provident Fund Commissioner Neelam Shami Rao, SIMA secretary general K Selvaraju said the member mills were facing significant difficulties since the new mandate was enforced. According to him, the app frequently crashes, logs out users, displays server errors and fails to map existing UANs for employees who previously worked elsewhere. "These issues have led to severe delays in UAN generation, creating a backlog of applications and hampering day-to-day operations. Employers were neither given any time nor adequate sensitization before the circular came into effect," Selvaraju said. SIMA has requested the EPFO to revert to the previous system-based UAN generation process until the UMANG app's technical problems are resolved, and to conduct awareness programmes before introducing such changes. The association, which represents more than 1,500 textile mills and the entire textile value chain in South India, has also shot off a letter to the Union labour and employment ministry in this regard. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Hindustan Times
05-08-2025
- Business
- Hindustan Times
UMANG app now mandatory for UAN: How to generate and activate
The Employees' Provident Fund Organisation (EPFO) has made the use of the UMANG app mandatory for the generation and activation of Universal Account Numbers (UAN) starting August 1, 2025. The new system leverages Aadhaar-based Face Authentication Technology (FAT) to simplify and secure the process. According to the official circular, all new UAN allotments will now be done exclusively through the UMANG app using FAT.(Umang) According to the official circular, all new UAN allotments will now be done exclusively through the UMANG app using FAT. The move is aimed at eliminating errors and ensuring seamless onboarding for new and existing members of the EPFO. Who needs to use the UMANG app? Any employee who wants to: -Generate a new UAN -Activate an existing UAN -Update EPFO records through biometric face authentication will now be required to use the UMANG (Unified Mobile Application for New-age Governance) app. The Aadhaar Face RD app must also be installed to complete the process. However, workers from Nepal, Bhutan, and international employees remain exempt from this requirement. Their UANs can still be generated through their employers. What you need to get started -A smartphone -UMANG app -Aadhaar Face RD app -Aadhaar-linked mobile number How to generate a new UAN via UMANG App -Open the UMANG app and select 'UAN Allotment and Activation' -Enter your Aadhaar number and linked mobile number -Provide consent and tap 'Send OTP' -Verify the OTP and proceed with face scan authentication -If no existing UAN is found, the system will generate one automatically and send it to your registered number via SMS How to activate an existing UAN -Open UMANG and choose 'UAN Activation' -Enter your UAN, Aadhaar number, and mobile number -Provide consent and complete OTP verification -Authenticate using the Aadhaar Face RD app -You'll receive a confirmation SMS with your temporary password, and the UAN will be activated For already activated UANs If you've already activated your UAN but need to update records via biometric authentication: -Use the 'Face Authentication of Already Activated UANs' option on the UMANG app -Perform the face scan to update your EPFO database photo and address Why this matters The EPFO's updated process is designed to enhance data accuracy and user autonomy. Once activated, members can access a range of services, including: -Viewing EPF passbook -Filing claims -Downloading the e-UAN card -Updating KYC information By making the UMANG app central to the process, EPFO aims to streamline UAN access while reducing the dependency on employers or physical offices.
Time of India
04-07-2025
- Business
- Time of India
Moonlighting on rise, IT cos tighten checks
BENGALURU: Amid low single-digit salary hikes and growing job market unpredictability, the IT industry is witnessing a sharp rise in moonlighting-related verifications. Companies now scan for overlapping employment - clear indicators of concurrent roles or undisclosed prior engagements. Such discrepancies are automatically flagged and escalated for client review. The final determination of risk or policy breach rests with the client, guided by their internal policies, risk tolerance, and candidate discussions. Background verification firm OnGrid reported a surge in screening activity. In the first six months of the current year, it processed 23,000 employment verifications-already 87% of the total 26,000 conducted last year. A key driver is employment history checks, often used to detect moonlighting. These checks flagged 2,900 cases in the first half of this year, up from 2,201 in all of last year. OnGrid tracks Universal Account Numbers (UANs), employment timelines, and personal records to spot overlapping jobs and undisclosed roles. Manav Jain, chief business officer at OnGrid, said that post-pandemic, with the rise of remote, hybrid, and freelance models, moonlighting cases increased. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The flexibility of these arrangements made it easier for some to take on secondary jobs. Economic factors also push professionals to seek backup income or job security. During the pandemic, many employees were not fully engaged during typical work hours, and without robust monitoring tools, some used the extra time to take on additional work, which over time became habitual for some. Rahul Maheshwari, former Google employee and founder of edtech platform Linux Socials, said many professionals are turning to teaching as a side gig to cope with job uncertainty. "Several work as freelancers, taking teaching assignments without going through the PF route. I currently have around 20 professionals from top MNCs who double up as instructors on the platform-many are here to cope with the current instability," he said. Maheshwari himself was asked to stop sharing tutorials on YouTube and LinkedIn after HR classified it as moonlighting. Though he insisted teaching wasn't moonlighting, he resigned to avoid friction-even though it didn't interfere with his day job. Background verification firm AuthBridge reports that 5 out of every 100 candidates engage in dual employment. Nearly 90% of these cases come from the IT services sector, mainly in Telangana, Karnataka, and Tamil Nadu. In one case, a developer was simultaneously employed at five companies, including two direct competitors. AuthBridge uncovered this overlap through PF records and Form 26AS. The shift to remote work during Covid also sparked a surge in multi-employment cases. OnGrid found one candidate joined 50 companies in a single year, worked seven years with 141 employers on record. In 2021, she added 21 more employers and was simultaneously on payroll at 10 companies. This included full-time roles at big names, startups, and established MNCs-not just freelance or contract work. In 2022, Wipro chairman Rishad Premji said the company fired 300 employees for working for direct competitors while being on Wipro's rolls. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
