Legal update – Postponement of Implementation – ELI Scheme 2025 (PM-VBRY)

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Provident Fund

Postponement of Implementation – ELI Scheme 2025 (PM-VBRY)

In continuation to our Legal update dated 10th July 2025 regarding the implementation of ELI Scheme 2025, which also known as Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY),

The effective date of the scheme has been postponed due to unforeseen administrative exigencies.

We will keep you informed as and when further updates are received.

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Legal Update – Mandatory Allotment and Activation of UAN through UMANG App using Face Authentication

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Provident Fund

Mandatory Allotment and Activation of UAN through UMANG App using Face Authentication

EPFO has mandates allotment and activation of UAN through the UMANG app using Aadhaar-based Face Authentication Technology (FAT) effective from 1st August 2025.

Employer-based generation of UAN will only continue for –

  • International Workers
  • Citizens of Nepal and Bhutan

Enclosed herewith the notification issued by the EPFO along with User Manual for FAT -based UAN generation through UMANG.

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Legal Update – Employment-Linked Incentive Scheme (ELI Scheme)

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Provident Fund

Employment-Linked Incentive Scheme (ELI Scheme)

Dear all,

The Employment Linked Incentive Scheme 2025 (ELI Scheme) was approved by the Union Cabinet on July 1, 2025. The scheme is aimed to support job creation and enhance social security in India.
It is effective from 1st August 2025 to 31st July 2027.

The scheme has two parts:
Part A – First time employees
Part B – Employers

How first‑time employees Will Get the Benefits
This scheme is designed for people who are joining the formal workforce for the first time. EPFO‑registered employees earning up to ₹1 lakh per month are eligible to receive payment up to ₹15,000, paid in two instalments:
1st instalment: after six months of continuous service
2nd instalment: after twelve months, once a short financial training course is completed.

How Employers Will Get the Benefits
Employers will receive a monthly incentive for every new eligible employee they hire and retain:
₹1,000 for workers earning up to ₹10,000/month
₹2,000 for workers earning between ₹10,001 and ₹20,000/month
₹3,000 for workers earning between ₹20,001 and ₹1 lakh/month

To qualify, employers must hire at least two new employees if they have fewer than 50 workers, or five new employees if they have 50 or more employees.
These employees must stay on the payroll for a minimum six months.

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Legal Update : Employment Incentive Scheme : Budget 2024-25

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Provident Fund

Legal Update : Employment Incentive Scheme : Budget 2024-25

Dear All,
Find enclosed details of the schemes announced this Budget incentivising Employers to enroll fresh employees.

Please note that procedural clarity to avail benefits in r/o of these schemes is still awaited from the respective departments.

Based on our experience for our clients availing such incentive scheme benefits in the past, We would strongly discourage anyone availing these schemes. However, Should you still be interested, Please drop us your interest so that we can reach out to you as & when procedural guidelines are announced

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Legal Update – EPFO Member Portal Services

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Provident Fund

EPFO Member Portal Services

As per a news article on 27th July 2023, the EPFO is facing severe challenges
due to its collapsing and outdated software systems. The EPF Officers’
Association (EPFOA) has warned the Union government about the urgent
need to fix these issues, as the old servers are likely to stop functioning by
January 2024.

The EPFOA has pointed out that any delays in procuring new servers and
hardware will have significant consequences for the EPFO and its members.

The EPFOA has reported a surge in complaints and requests for help
regarding slow or non-functional software, leading to waste of time and
increased claims pendency levels. The pendency of member claims and
grievances is also on the rise.

We urge all clients to be aware of these challenges and prepare for potential
disruptions in EPFO services. We will keep you updated as more information
becomes available.

EPFO Notifies PMK Scheme

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Provident Fund

EPFO has finally issued the enclosed Notification regarding the guidelines and eligibility to avail benefit of FM announced 3 months PF Contribution by the Central Govt.

Though the Notification is issued, There is no provision yet made on the portal to avail the benefits for the month of March-2020.

Norms Relaxed for correction in DOB in EPFO

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Provident Fund
EPFO vide circular no.WSU/37(1)2019/DOB in supersession of earlier circulars dated 12th December 2006 and 12th December 2017 has accepted certain documents as a valid proof of date of birth in case of any dispute in the date of birth. 
 
As per the notification, the following are the list of documents: 
(1) Birth Certificate issued by the Registrar of Births and Deaths 
(2) Any School/education-related Certificate 
(3) Certificate based on the service records of the Central/ State Government Organisations 
(4) Passport 
(5) In the absence of proof of date of birth as above, Medical Certificate issued by Civil Surgeon after examining the member medically and supported with an affidavit on oath by the member duly authenticated by a Competent Court 
(6) Aadhar/e-Aadhar: the change in date of birth shall be accepted as per Aadhar /e- Aadhar up to a maximum range of plus or minus three years of the date of birth recorded earlier with EPFO. 
Please refer to the notification for detailed information