Archive · 9 Aug 2025
EPFO's New Face Authentication Rule Creates Payroll Issues
The Employees' Provident Fund Organisation (EPFO) now requires people to use their faces to prove who they are when getting a new UAN (a special number for employee benefits).
This new rule is causing problems for companies that hire lots of people, like staffing agencies.
Many employees don't have their phone numbers linked to their Aadhaar cards, which they need.
It's hard for companies to get all their employees to use the face scan, especially since some don't have smartphones or internet.
This can delay paychecks and contributions to their retirement funds, especially for small businesses.
The staffing companies want the EPFO to let them help with UANs again.
EPFO mandates face authentication for UAN generation, causing implementation issues.
Staffing companies cite challenges with FAT due to mobile number and Aadhaar linking problems.
Coordinating FAT is logistically difficult for companies with transient workforces.
Delays in salary processing and PF contributions are expected, especially for MSMEs.
ISF has requested EPFO to allow employers to generate UANs for first-time employees.
- Who
- EPFO, staffing companies (represented by ISF)
- What
- EPFO made face authentication mandatory for UAN generation, causing issues.
- When
- August 2024
- Where
- India
- Why
- To ensure error-free generation of UAN
Staffing Companies' Concerns
EPFO's Stance
FAT Implementation
Staffing Companies' Concerns
Mandatory FAT implementation poses logistical challenges and delays for large, dynamic workforces.
EPFO's Stance
EPFO's goal to ensure 'error-free generation' of UAN through FAT
UAN Generation Process
Staffing Companies' Concerns
Staffing companies argue the restrictions on generating UANs without immediate Aadhaar seeding and the FAT mandate delay the onboarding process.
EPFO's Stance
EPFO's objective for a secure and accurate UAN generation process.
- Organization
- Employees’ Provident Fund Organisation (EPFO)
- Requirement
- Aadhaar-based Face Authentication Technology (FAT)
- Purpose of FAT
- UAN generation and activation
- UAN
- 12-digit unique number for EPF contributors
- Affected Parties
- Staffing companies, employees