As per the Act 1952, it is mandatory for the employers covered under this legislation to obtain Universal Account Number (UAN).
The government was considering the proposal to make UAN mandatory for availing of benefit of the scheme. The UAN facility was launched by Prime Minister Narendra Modi in October last year.
As per the EPF scheme, the deadline for completing the formalities is August 25 after which action will be taken under the powers given under the Employees Provident Funds Scheme.
The UAN remains portable throughout the lifetime of an employee and they don’t have to apply for PF transfer claims at changing jobs.
It is even more beneficial for workers in the construction sector, who often change their contractor after short span of time and take up new jobs after fining one contract.
The bank account details are necessary for using UAN for various claims including PF withdrawals.
However, those subscribers who have UAN but not provided bank account details can activate their UAN and access it online.