The Employees' Provident Fund Organisation (EPFO) has discontinued Universal Account Number (UAN) activation and new UAN generation through its portal and shifted both services to the Umang app with Aadhaar-based Face Authentication (FAT) requirement. According to reports from Mint, this overhaul follows a major database consolidation and software upgrade aimed at making online services faster and more reliable. The EPFO has implemented this change to streamline the activation process and enhance security measures for new users.
First-time users can activate their UAN through the Umang app by following a stepwise process. As reported by Mint, users must download the Umang app, register with Aadhaar-linked mobile number and set a 4-digit M-PIN, then search for 'EPFO' and select 'UAN Activation' under 'UAN Services Through Face Auth'. The process requires filling in UAN, Aadhaar number, and Aadhaar-linked mobile number, followed by face scan authentication using the 'Aadhaar Face RD app' and submission of personal details. Upon successful completion, users receive a temporary password via SMS and can verify activation status through the app's UAN services section.
According to Mint, EPF eligibility requires basic pay and dearness allowance up to ₹15,000, with voluntary provident fund (VPF) option available for higher earners. The Finance Ministry has reportedly ratified the EPFO's suggestion of 8.25% interest rate for EPF and VPF contributions for FY2025-26, marking the third consecutive term with this rate. Annual employee contributions up to ₹1.5 lakh are exempt under Section 80C of the old tax regime, while employer contributions up to 12% are exempt under both regimes. Interest on employee contributions remains tax-free up to ₹2.5 lakh, with no comparable benefit under the new tax regime.
As reported by Mint, EPFO subscribers must maintain 25% minimum balance in their EPF account at all times, allowing access to a maximum of 75% of their corpus during partial withdrawal. For example, a subscriber with ₹2 lakh total balance can withdraw up to ₹1,50,000 as partial withdrawal while maintaining ₹50,000 minimum balance. Partial withdrawal is permitted even before retirement, while final settlement requires leaving employment, making EPF a secure long-term investment tool for retirement savings.
