Industry Group Voices Concerns Over EPFO’s Facial ID Mandate

The Association of Industries & Institutions (AII), representing over 7,000 members across private, public, SME, and multinational sectors, has raised concerns over the Employees’ Provident Fund Organisation’s (EPFO) recent directive mandating Aadhaar-based facial authentication via the UMANG app for generating Universal Account Numbers (UANs).

In a letter to labour and employment minister Mansukh Mandaviya, AII described the move effective 1 August 2025 as disruptive, particularly for industries grappling with high employee attrition, low digital literacy, and limited smartphone access, as per Mint report.

What Is EPFO Aadhaar-Based Face Authentication Mandate?

On 30 July, EPFO issued a circular requiring that UAN allotment and activation be carried out exclusively through the UMANG (Unified Mobile Application for New-age Governance) app using Aadhaar-based Face Authentication Technology (FAT). The policy aims to improve identity verification and streamline processes.

However, employers argue that the single channel approach creates significant compliance bottlenecks and risks delays in onboarding new employees, as per the report.

Key Concerns Raised by the Industry Body

• Lack of parallel access options: AII urged EPFO to reinstate UAN generation through the Unified Employer Portal alongside the UMANG app to prevent administrative delays.
• Digital literacy gaps: The mandate could disproportionately affect sectors with low smartphone penetration and employees unfamiliar with app-based processes.
• Operational disruptions: High attrition sectors may face repeated authentication challenges, slowing HR processes.

Recommendations for a Smoother Rollout

• Dual-channel approach: Retain both UMANG app and Unified Employer Portal for UAN generation.
• Optional authentication: Make facial authentication a self-service feature for digitally equipped employees rather than a blanket requirement.
• Bulk UAN generation: Allow employers to create multiple UANs using Aadhaar e-KYC, with facial authentication deferred.
• Transition period: Provide a 6 to 12-month grace period for awareness drives, technical readiness, and training.

Read More: EPFO May Reject Your PF Transfer If Your Employer Missed Reporting On-Site Deputation!

Conclusion

While acknowledging EPFO’s commitment to digital transformation, AII stressed that the rollout must be inclusive and pragmatic, considering the diverse realities of India’s workforce. The labour ministry has yet to respond to the representation.

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