EPFO’s new facial authentication rule for UAN: What it means for HR

The Employees’ Provident Fund Organisation (EPFO) has introduced a significant change in the Universal Account Number (UAN) generation process that will affect human resources professionals and employers across India. Effective August 1, 2025, the EPFO requires that all new UANs be generated exclusively through Aadhaar-based Face Authentication Technology (FAT), as per a circular issued on July 30, 2025.

This move, aimed at enhancing the accuracy and security of UAN issuance, mandates new subscribers to generate their UAN using facial recognition linked to their Aadhaar via the UMANG mobile application. Let’s understand what this means for HR teams and staffing agencies, alongside potential challenges and practical implications.

What is the UAN and why does it matter?

The UAN is a unique 12-digit number allotted to every employee contributing to the Employees’ Provident Fund (EPF) scheme. It acts as a single identifier that simplifies the management of EPF accounts, allowing employees to check their balances, submit claims for advances, and transfer funds seamlessly. Without a UAN, accessing these benefits becomes cumbersome, leading to delays and confusion.

What’s new with the facial authentication rule?

While Aadhaar linkage has been a part of the EPFO system for several years, the recent change is the mandatory use of Aadhaar-based facial recognition technology for all new UAN creations. Previously, employers could generate UANs directly for their employees using other verification methods. However, from August 1, 2025, this can only be done using face authentication through the UMANG app — a government-developed platform that consolidates various public services for citizens.

A circular issued by the EPFO on July 30 explicitly instructs field officers to enforce this new procedure to ensure a more authentic and error-free generation of UANs. This technology aims to minimise fraud and duplication by validating an individual’s identity biometrically.

Who is impacted?

This new rule primarily affects new employees enrolling in the EPF scheme. Existing UAN holders and employees with UANs generated prior to August 1 will continue with the existing processes. However, exceptions remain for specific groups such as international workers and citizens of Nepal and Bhutan, for whom employer-based UAN generation will still be allowed under exceptional circumstances.

Challenges for HR and staffing firms

While the change strengthens identity verification, it also introduces new challenges for HR departments and staffing firms, especially those providing manpower solutions to multinational companies.

The Indian Staffing Federation (ISF), which represents approximately 1.8 million contract workers, recently highlighted concerns to the EPFO regarding the new policy. Many contract workers lack mobile numbers linked to their Aadhaar, a prerequisite for the face authentication process via UMANG. This disconnect can hinder UAN generation for these workers, delaying their enrolment and access to EPF benefits.

Moreover, ISF raised concerns about the digital literacy of some workers and potential technical issues stemming from variations in mobile phone models and camera quality, which may cause authentication failures. These factors could lead to a backlog of unprocessed UAN applications, complicating HR compliance.

What HR professionals should do

To navigate the new system effectively, HR teams should:

• Educate new hires and contract workers on the facial authentication process and assist them in linking their Aadhaar number with their mobile phone.
  
  

• Facilitate access to smartphones or kiosks where biometric verification can be conducted smoothly.
  
  

• Coordinate with EPFO officials and leverage the UMANG app for streamlined UAN generation.
  
  

• Monitor updates from EPFO for any procedural clarifications or technical support.
  
  

The role of the UMANG app

The UMANG app, launched by the government, offers a single platform for citizens to access multiple government services, including EPF-related functions. Integrating UAN generation through Aadhaar-based FAT on this app simplifies the verification process, providing a uniform digital interface.

However, the reliance on a digital platform also places emphasis on mobile connectivity, user familiarity, and hardware compatibility — factors HR and staffing agencies must consider when assisting employees.

EPFO’s new rule reflects a broader government initiative to digitise and secure social welfare processes, aiming to reduce identity fraud and improve service delivery. While the technology strengthens security, organisations must balance this with efforts to ensure inclusivity and ease of access, particularly for contract and migrant workers.