Background and Rationale

Until now, the process of UAN (Universal Account Number) generation and activation was largely employer-driven, relying on data submission and Aadhaar OTP validation through the EPFO Member Portal. However, this method was riddled with issues: incorrect or missing details (e.g., name, date of birth, mobile number), delays in UAN communication to employees, and low activation rates. In FY 2024-25, only 35.30% of the 1.26 crore UANs generated were activated, despite reminders.

To address these systemic challenges, the EPFO has launched an Aadhaar-based Face Authentication Technology (FAT) service integrated with the UMANG mobile app. This move aims to make UAN generation and activation fully contactless, self-service based, and more secure.

Detailed Comparison of Provisions

Amendments and Their Implementation

The core update is procedural and technological rather than legislative. EPFO now allows:

• Aadhaar-based Face Authentication for both UAN generation and activation.
• Use of the UMANG App alongside the AadhaarFaceRD app to capture live images and verify against UIDAI data.
• Automatic issuance of e-UAN cards post-authentication.
• Activation of previously unactivated UANs via the same method.

The process is live from April 9, 2025, and is to be promoted by employers for onboarding new employees.

Advantages of the Amendments

• Full Contactless Workflow: No physical or employer-driven process is required.
• Real-Time Verification: Biometric match ensures accurate identity confirmation.
• Elimination of Manual Errors: All details are sourced directly from Aadhaar.
• Instant Activation: UAN is generated and activated in a single digital flow.
• Universal Access: Employees can instantly use EPFO services like passbooks, KYC updates, and claim applications.
• Employer Burden Reduced: Simplifies HR onboarding processes and improves data accuracy in EPFO systems.

Implications and Future Prospects

This implementation marks a strategic shift toward digitally autonomous employee participation in EPFO systems. With upcoming integration into Jeevan Pramaan (digital life certificate) for pensioners through My Bharat volunteers, Aadhaar-based FAT could become a cornerstone for multiple EPFO self-service functions in future.

Employers are encouraged to adopt this model for onboarding and are advised to assist employees unfamiliar with digital tools in using the FAT-enabled process.

Conclusion

The new FAT-enabled UAN generation and activation through UMANG App represents a significant step in EPFO’s digital evolution. It resolves long-standing issues in the UAN lifecycle and introduces a secure, efficient, and user-driven mechanism. The initiative not only improves service accessibility but also lays the foundation for expanded digital service delivery by EPFO.