3 min readNew DelhiUpdated: Aug 10, 2025 07:46 AM IST
With the Employees’ Provident Fund Organisation (EPFO) having made face authentication mandatory for new UAN generation, staffing companies have flagged the hurdles in implementing the new norms that could result in payroll disruption and impact hiring.
In a representation to the EPFO head Ramesh Krishnamurthi on August 5, the Indian Staffing Federation (ISF) — the industry body of organised contract staffing companies representing over 1.8 million contract workforce employed across 135 companies — said that one major issue is that the mobile numbers of many members are not linked to their Aadhaar cards, causing challenges in generating a FAT-recognised UAN. It said the candidates are not familiar with how FAT (face authentication technology) works with issues coming up as to whether their faces should be close or far to the app, or varied settings on different phone brands etc.
“The mandatory FAT requirement for member profile updates, including KYC details, necessitates individual employee participation in facial authentication. Given the transient nature of our workforce, coordinating FAT for thousands of employees across multiple locations is logistically challenging and time-consuming. Many employees lack access to smartphones or stable internet connectivity, further complicating compliance. Without UANs, salary processing and PF contributions are delayed, especially in MSMEs and high-turnover sectors,” it said.
The ISF in its letter to the EPFO chief also said that over two days, members “failed to enroll over 1,000 plus candidates due to the restrictions announced with immediate effect due to operational challenges from UIDAI” and also employers not being allowed to generate the UAN as per existing process. The new requirements for FAT pose significant hurdles for staffing companies managing large, dynamic workforces, the ISF added.
What is EPFO’s new FAT requirement for UAN generation?
The EPFO assigns a 12-digit unique number called Universal Account Number or UAN to every employee contributing to the EPF. In April this year, the EPFO had issued a circular introducing the Aadhaar-based Face Authentication Technology (FAT) for allotment or generation and activation of UAN. On July 30, the EPFO in another missive to its field offices stated that the allotment or generation of UAN will be “done only through the Aadhaar-based FAT” in UMANG App with effect from August 1, 2025 to ensure “error-free generation” of UAN. It also said that the existing process of generation of UAN through the employer will continue in exceptional cases like international workers and citizens of Nepal and Bhutan.
UMANG App is a single platform for Indian Citizens to access pan India e-Gov services ranging from central to local government bodies.
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The ISF said the restriction on employers generating UANs without immediate Aadhaar seeding, coupled with the FAT mandate, delays the onboarding process.
“…due to the dependency on UIDAI to resolve changes which are time taking processes. Many candidates do not remember which mobile number is linked to their Aadhaar card. This must be updated before they can obtain a UAN,” the ISF said in a statement.
The ISF said this issue needs a long-term resolution as it could “greatly impact the hiring process for such candidates as UAN cannot be generated due to mandatory restrictions”. The ISF also suggested that the EPFO should allow employers to generate UAN for first-time employees and the compliance deadline for digital onboarding through FAT should be extended.
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