The Indian Staffing Federation (ISF), representing over 130 companies across India, has expressed concern over a recent order by the Employees’ Provident Fund Organisation (EPFO).
From August 1, 2025, creating a Universal Account Number (UAN) via the Umang app will require Face Authentication Technology (FAT). This rule will apply to all new employees.
Immediate Impact on Hiring and Payroll
According to ISF, the FAT requirement has already slowed recruitment. In just two days, the hiring process of over 1,000 candidates was put on hold.
This has disrupted payroll processing and created difficulties in meeting PF contribution requirements.
Staffing companies, which frequently hire and release temporary workers, are facing the biggest challenges.
Every employee must now update their KYC using FAT. However, many workers—especially in MSMEs and high-turnover sectors—lack smartphones or reliable internet. This delay in UAN generation directly affects salary and PF payments.
Other technical issues, such as server downtime, poor camera quality, and weak network connections, are also slowing down face recognition.
EPFO has set a deadline of June 30, 2025, for linking Aadhaar and completing FAT. Failure to comply could lead to penalties and a halt in PF contributions, impacting both employers and employees.
ISF’s Suggestions to EPFO
To address these issues, ISF has suggested:
Extending the timeline for digital onboarding and FAT awareness so employees can understand the EPFO, UAN, and Umang app process.
Simplifying FAT registration with better support and communication.
Allowing employers to create UANs from the portal for first-time job seekers to avoid PF registration delays.
What is UAN?
The Universal Account Number (UAN) is a 12-digit number issued by EPFO to every employee who opens an account under the Employees’ Provident Fund scheme.
It serves as a permanent umbrella ID for multiple member IDs provided by different employers. The UAN remains the same even if the employee changes jobs.
