Activation of Universal Account Number (UAN) and seeding of an Aadhaar to a bank account is a must for employees who wish to claim the monetary benefits of the Employment Linked Incentive (ELI) scheme, which is administered through EPFO. This mandatory exercise needs to be completed, if you want to get the benefits of the ELI scheme. Finance Minister Nirmala Sitharaman announced this new scheme during the Union Budget 2024 in July and there are three types of ELI schemes (A, B, and C).
“Please see the circulars cited. In this connection, the competent authority has granted an extension of timeline from 15.12.2024 to 15.01.2025 for UAN activation and Aadhaar seeding in bank account of all the employees,” said EPFO in a circular dated December 20, 2024.
Why do you need to link Aadhaar with a bank account to get ELI benefits?
The ELI money is to be credited using the direct benefit transfer mode (DBT) hence the reason why Aadhaar needs to be linked with the bank account.
The Ministry of Labour and Employment said in a dated November 22, 2024, “Since the benefits under the Employment-Linked Incentive (ELI) scheme, will be disbursed through Direct Benefit Transfer (DBT) to eligible employees, Employers are urged to ensure UAN activation and Aadhaar seeding in Bank Account…..in respect of all their employees who have joined in the current financial year, starting with the latest joinees.”
The Ministry earlier stated: “Every subscriber of EPFO is required to have an Aadhaar-linked Universal Account Number (UAN), which needs to be activated by creating a login on the Member Portal, for availing a number of facilities through a single window. Such facilities include the ability to view and download PF passbooks; submit online claims for withdrawals, advances, or transfers; update personal details and track the status of claims in real-time. The activation process is straightforward and can be completed using an Aadhaar-based OTP.”
How much money employees can get under the Employment Linked Incentive (ELI) Scheme?
There are three ELI schemes (A, B, and C). According to Finance Minister Nirmala Sitharaman’s Budget 2024 speech, Scheme A will focus on first-timers joining the Employment and Employees’ Provident Fund (EPF) scheme as well, Scheme B focuses on job-creation in manufacturing and Scheme C will focus on the support to the employers.Scheme A of the ELI scheme will provide a one-month wage to all the people newly entering the workforce in all formal sectors. The direct benefit transfer of one month’s salary in three instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary up to Rs 1 lakh per month.
Scheme B of the ELI scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at a specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first four years of employment.
Scheme C of the ELI scheme is an employer-focused scheme that will cover additional employment in all sectors. All additional employment within a salary of Rs1 lakh per month will be counted. The government will reimburse employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee.
