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UAN activation, KYC, and EPF passbook: what employers must do for every new joiner
A new employee joins your company on the first of the month. By the 15th, your ECR (Electronic Challan-cum-Return) is due. That ECR requires a valid, active UAN linked to your establishment for every contributing employee. If the new joiner's UAN is not generated, not linked, or not activated in time, the ECR row cannot be filed correctly and your first contribution for that employee gets delayed.
This is a compliance gap that affects more employers than it should, because the UAN onboarding process has several moving parts, each with its own portal, timeline, and ownership. The employer handles some steps; the employee handles others. Knowing exactly who does what, and in what sequence, is the difference between a clean ECR and a scramble on the 14th of every month.
This guide covers the complete process: UAN generation and linking, the current activation method via UMANG, KYC seeding and employer approval, EPF passbook access, and the employer obligations that run alongside all of it.
What is a UAN?
A Universal Account Number (UAN) is a 12-digit permanent identification number issued by the Employees' Provident Fund Organisation (EPFO) to every EPF member. Unlike the Member ID (also called the PF number), which is establishment-specific and changes every time an employee switches jobs, the UAN remains the same throughout an employee's career.
Think of the UAN as an umbrella: each time an employee joins a new employer, a new Member ID is created and linked to the same UAN. All EPF accounts across all employments are visible under one UAN. This makes PF transfers between jobs, passbook access, and online claim filing possible without paper forms or employer intervention for most transactions.
Every employee contributing to EPF must have a UAN. Without one, contributions cannot be correctly reported in the ECR, and the employee cannot access any EPFO digital service.
Step-by-step process
Step 1: UAN generation or linking at the time of joining
When a new employee joins your establishment, the first step is to determine whether they already have a UAN from a previous employer or need one generated for the first time.
If the employee has a prior UAN: Ask for their UAN number on day one, ideally as part of the joining documentation checklist. Once you have it, log in to the EPFO Unified Employer Portal, go to Member > Register Individual, and link the existing UAN to your establishment. This creates a new Member ID under the existing UAN for the current employment.
If the employee is a first-time EPF member and has no UAN: From August 1, 2025, EPFO introduced Aadhaar-based Face Authentication Technology via the UMANG app as the preferred and fastest route for employees to generate and activate their own UAN instantly, without waiting for employer action. Your onboarding process should default to this: ask every new joiner to complete UMANG self-allotment before or on their first day. However, if an employee has difficulty completing UMANG activation due to mobile-Aadhaar sync delays, no smartphone access, or UIDAI data mismatches, you can generate their UAN directly through the Unified Employer Portal as a fallback. Both routes result in a valid, active UAN linked to your establishment.
Step 2: UAN activation via UMANG (Aadhaar face authentication)
From August 1, 2025, the OTP-based UAN activation on the EPFO member portal was discontinued. UAN activation now happens primarily through the UMANG app using Aadhaar-based Face Authentication Technology. Any guide still telling employees to click "Activate UAN" on the EPFO portal and enter an OTP is outdated.
Here is the current activation process your employees must follow:
Download the UMANG app from the Google Play Store or Apple App Store and download the Aadhaar Face RD app (required for face authentication)
Sign in to UMANG using the mobile number linked to Aadhaar
Search for "EPFO" in the services section
Under EPFO services, tap on "UAN Allotment and Activation" (for first-time UAN generation) or "UAN Activation" (for existing but inactive UANs)
Enter the 12-digit Aadhaar number and the Aadhaar-linked mobile number, and give consent for Aadhaar verification
An OTP is sent to the Aadhaar-linked mobile number: enter it to proceed
The app launches the Aadhaar Face RD app for live face authentication against UIDAI records
On successful biometric match, the UAN is generated and activated instantly and sent via SMS to the registered mobile number
Once activation is complete, the employee can log in to the EPFO member portal or UMANG app using their UAN and the temporary password received by SMS, then set a permanent password.
As an employer, your role here is to inform every new joiner of this process during onboarding and make UMANG self-activation the default instruction. Ensure they have a mobile number linked to their Aadhaar before joining, since without this the face authentication step will fail. If an employee encounters issues completing UMANG activation, generate their UAN through the Unified Employer Portal as a fallback so their first ECR is not delayed. Confirm that activation is complete and the UAN is linked to your establishment before the ECR deadline.
Step 3: KYC seeding and employer approval
UAN activation alone is not sufficient for an employee to use EPFO's online claim and withdrawal services. The UAN must also have verified KYC documents linked to it. The three mandatory KYC documents are:
Aadhaar (mandatory, forms the basis of face authentication)
PAN
Bank account with IFSC code
How the employee seeds KYC: The employee logs in to the EPFO Unified Member Portal at unifiedportal-mem.epfindia.gov.in, navigates to Manage > KYC, selects the document type, enters the details exactly as they appear on the document, and saves. The status immediately shows as "Pending for Approval."
What happens with Aadhaar KYC: Because Aadhaar is already verified during face authentication at activation, Aadhaar KYC is auto-approved digitally without employer intervention in most cases, provided the name and date of birth in EPFO records exactly match the Aadhaar. This is one of the major operational improvements introduced alongside the UMANG-based activation process.
What happens with PAN and bank account KYC: These require employer approval. As the employer, you must log in to the Unified Employer Portal, navigate to Member > Approve KYC Seeded by Member, cross-verify the employee's details against your payroll records, and approve using either a Digital Signature Certificate (DSC) or an e-Sign (Aadhaar OTP-based signing). Once you approve, the status on the employee's portal changes to "Approved by Employer" immediately.
Why this matters: Without approved KYC, the employee cannot file online PF claims, transfer their balance, or access withdrawal services. A new joiner whose PAN and bank KYC sits at "Pending" for weeks because the employer has not logged in to approve it is a common and entirely avoidable compliance gap. Build the KYC approval step into your weekly HR task list, not a one-off action.
Step 4: Linking UAN to your establishment and filing ECR
Once the UAN is active and linked to your establishment, you must include the employee in your monthly ECR filing. The ECR is the Electronic Challan-cum-Return uploaded to the EPFO Unified Employer Portal every month. It reports each member's UAN, gross wages, EPF wages, EPS wages, and the employer and employee contributions for the month.
Key ECR filing facts:
ECR must be filed by the 15th of each month for the previous month's wages
Each member row in the ECR requires a valid, active UAN linked to your establishment: a new joiner who has not yet activated their UAN cannot be included correctly in the ECR
Late filing attracts interest at 12% per annum under Section 7Q of the EPF and MP Act, 1952, plus damages under Section 14B ranging from 5% to 25% per annum depending on the delay period
EPFO requires employers to register new employees and link their UAN within one month of joining
EPF passbook: what the employee can access and when
Once the UAN is activated and at least one contribution has been credited, the employee can view their EPF passbook. The passbook is a digital ledger showing month-by-month contributions from both the employee (12% of basic wages and DA) and the employer (split into 3.67% to EPF and 8.33% to the Employees' Pension Scheme, or EPS), along with interest credited at the end of each financial year.
The EPF interest rate for FY 2025-26 is 8.25% per annum, credited annually to member accounts.
How employees access the passbook:
Via the EPFO passbook portal using UAN and password
Via the EPFO member portal under the passbook section
Via the UMANG app under EPFO > Employee Centric Services > View Passbook
Employees can view the passbook only after six hours of UAN activation. If an employee has worked for multiple employers under the same UAN, the passbook shows a separate ledger for each Member ID (each employment). Contributions appear in the passbook once the employer has filed the ECR and the challan payment is cleared.
Important for employers: If a new joiner's contributions are not reflecting in their passbook, the most common reasons are delayed ECR filing or a challan payment that has not yet been cleared. Employees can raise a grievance on the EPFiGMS portal at epfigms.gov.in if contributions are not visible after a reasonable period.
Employer obligations summary: the new joiner EPF checklist
For every new employee who is covered under the EPF scheme (employees drawing up to Rs 15,000 per month in basic wages and DA are mandatorily covered; those drawing above this can be enrolled voluntarily):
On day one of joining: collect the employee's existing UAN if they have one from a previous employer, or instruct first-time EPF members to complete UMANG self-allotment before or on their first day
Confirm the employee's mobile number is linked to their Aadhaar before joining (essential for UMANG activation)
If the employee cannot complete UMANG activation due to mobile or UIDAI sync issues, generate the UAN through the Unified Employer Portal as a fallback
Link the UAN (new or existing) to your establishment through the Unified Employer Portal
Within 7 to 10 working days of joining: log in to approve pending PAN and bank account KYC requests on the Employer Portal
By the 15th of the following month: include the new employee in the ECR with correct wage and contribution data
Share the UAN and Member ID with the employee in writing (on the salary slip or a separate communication) so they can access their passbook and track contributions
Managing UAN and EPF compliance in Zoho Payroll
Keeping track of UAN status, KYC approvals, and ECR filing deadlines across a growing headcount is operationally demanding. Zoho Payroll integrates with EPFO workflows to help employers compute EPF contributions accurately, generate ECR-ready reports, and stay on top of statutory deadlines.
The way forward
UAN onboarding is not a formality: it is the foundation of an employee's EPF access for the rest of their career with you. A missed activation, a delayed KYC approval, or a skipped ECR row has consequences that show up months later as passbook mismatches, claim rejections, and employee grievances. Here is what to embed in your onboarding process:
Make UMANG self-activation the default instruction for all new joiners, with the Unified Employer Portal as the fallback for employees who face mobile or UIDAI sync issues
Verify that the new joiner's Aadhaar is linked to an active mobile number before joining
Link the UAN to your establishment on the Employer Portal within the first week
Approve PAN and bank KYC within 7 working days of the employee seeding it
Include the new joiner in the ECR by the 15th of the first full month of employment
Share the UAN and Member ID with the employee in writing so they can independently track their passbook
About Zoho Payroll
Zoho Payroll is a cloud-based payroll software built for Indian businesses. It automates EPF contribution calculations, generates ECR-ready reports, and helps employers stay compliant with EPFO deadlines. Learn more at zoho.com/in/payro
Frequently Asked Questions
What is UAN activation?
UAN activation is the process by which an EPF member sets up access to their Universal Account Number so they can use EPFO's online services: viewing the EPF passbook, updating KYC, tracking claims, and filing withdrawals. Without activation, the UAN exists in EPFO's records but the member cannot log in or access any digital service.
How does the EPFO UAN activation process work in 2026?
From August 1, 2025, the preferred route for UAN activation is through the UMANG app using Aadhaar-based Face Authentication Technology. The employee downloads UMANG and the Aadhaar Face RD app, enters their Aadhaar and Aadhaar-linked mobile number, completes OTP verification, and then completes a live face scan. On successful authentication, the UAN is activated instantly. The old OTP-based activation on the EPFO member portal has been discontinued. If an employee cannot complete UMANG activation, the employer can generate the UAN through the Unified Employer Portal as a fallback.
What is the UAN allotment and activation process for a first-time EPF member?
For a first-time EPF member with no prior UAN, the preferred route is to complete UAN allotment and activation together through the UMANG app under the "UAN Allotment and Activation" option. The employee completes Aadhaar face authentication and the UAN is generated and activated in a single step. If the employee faces issues with UMANG activation, the employer can generate the UAN through the Unified Employer Portal as an alternative.
What is the employer's role in UAN activation?
As of August 2025, the preferred route is for the employee to activate their UAN independently through the UMANG app using Aadhaar face authentication, without requiring employer involvement. Your role as an employer is to guide new joiners through this process during onboarding and confirm it is completed before the first ECR. If an employee cannot complete UMANG activation due to mobile or UIDAI sync issues, generate the UAN through the Unified Employer Portal as a fallback. In both cases, also approve PAN and bank KYC on the Employer Portal, include the employee in the monthly ECR, and share the UAN and Member ID with the employee.
What is EPF KYC and why does it need employer approval?
EPF KYC links the employee's Aadhaar, PAN, and bank account to their UAN. Aadhaar KYC is auto-approved after face authentication. PAN and bank account KYC must be verified and approved by the employer on the Unified Employer Portal under Member > Approve KYC Seeded by Member. Without approved KYC, the employee cannot file online PF claims, transfers, or withdrawals.
How can an employee access their EPF passbook?
An employee can access their EPF passbook through the EPFO passbook portal at passbook.epfindia.gov.in, through the EPFO member portal at unifiedportal-mem.epfindia.gov.in, or through the UMANG app under EPFO > View Passbook. The UAN must be activated and at least one contribution must have been credited. The passbook becomes accessible six hours after UAN activation.
What is the EPF contribution rate for employers?
The total employer contribution to EPF is 12% of the employee's basic wages and DA. Of this 12%, 3.67% goes to the employee's EPF account and 8.33% goes to the Employees' Pension Scheme (EPS). The employee also contributes 12% of basic wages and DA, which goes entirely to the EPF account.
What is the ECR filing deadline?
The ECR must be uploaded to the EPFO Unified Employer Portal and the challan paid by the 15th of each month for the previous month's wages. Late filing attracts interest at 12% per annum under Section 7Q plus damages of 5% to 25% per annum under Section 14B depending on the delay.
What happens if a new joiner does not activate their UAN before the ECR deadline?
If the UAN is not activated and linked to your establishment before the ECR is due, the employee's contribution row cannot be correctly included in the ECR. This can trigger interest and damages for late payment. It is why UAN activation should be completed in the first week of employment, not the week the ECR is due. If the employee cannot complete UMANG activation in time, use the Unified Employer Portal to generate the UAN directly.
What is the EPF interest rate for FY 2025-26?
The EPF interest rate for FY 2025-26 is 8.25% per annum, credited annually to member accounts.