Aadhaar link mandatory for EPF pension
All formal sector workers earning monthly salary below ~15,000 will now have to link their provident fund (PF) accounts, managed by the Employees’ Provident Fund Organisation (EPFO), with their Aadhaar numbers.
The EPFO operates three schemes — Employees’ Provident Fund Scheme 1952, Employees’ Pension Scheme (EPS) 1995, and Employees’ Deposit Linked Insurance Scheme, 1976 — towards which both employees and employers contribute.
While upholding the constitutional validity of Aadhaar on Wednesday, the court restricted its use to government welfare schemes funded by the Consolidated
Fund of India.
A government official said subscribers availing benefits of
EPS will have to link their PF accounts with Aadhaar numbers. The government provides a subsidy, equivalent to 1.16 per cent of an employee’s salary up to ~15,000 towards EPS. Over
40 million people avail of EPS benefits at present.
The EPFO has more than 60 million active members. All companies with at least 20 workers are covered by the EPFO. However, it may not be compulsory for the employees who are current subscribers of EPFO and not covered under EPS (with monthly income above ~15,000) to link Aadhaar.
Employees joining companies after August and availing of the government benefits under the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) will also have to link their PF accounts with Aadhaar numbers.
Under the PMRPY, the government pays 8.33 per cent of an employer’s share of the contribution towards schemes run by the EPFO. The scheme will continue for such employees for the first three years of their employment after getting a new job since August 9 when the PMPRY was notified.
The Centre had started the process of seeding EPF accounts with Aadhaar in 2017, after issuing a notification making Aadhaar mandatory for EPS beneficiaries. At present, the minimum pension under EPS is ~1,000 per month and an employee can receive pension only after a minimum 10 years of service.
While upholding the constitutional validity of Aadhaar on Wednesday, the court restricted its use to government welfare schemes funded by the Consolidated Fund of India