Facial authentication mandate delays worker onboarding in India
India's EPFO mandated facial authentication for worker account registration starting August 1, 2025, but the system reportedly delayed onboarding for over 1,000 workers within two days, disrupting payroll and benefits access. Staffing companies reported technical failures and infrastructure gaps left contract workers unable to complete authentication, particularly in remote areas.
What happened
The Employees' Provident Fund Organisation (EPFO) mandated that starting August 1, 2025, all Universal Account Number (UAN) allotment and activation must be done through the UMANG app using facial authentication technology.
The Indian Staffing Federation reported that the FAT mandate, coupled with restrictions on employer-led UAN generation without Aadhaar seeding, had already stalled onboarding for more than 1,000 candidates within two days of August 1, disrupting payroll cycles and compliance timelines.
Reported impact
Staffing companies reported inability to generate UANs promptly, disrupting timely provident fund contribution credits. Workers in remote areas or lacking smartphones and reliable internet faced UAN delays that disrupted salary payments and PF contributions.
The ISF noted that facial recognition failures and technical glitches created obstacles, with the FAT process requiring additional administrative effort to educate employees, facilitate authentication, and troubleshoot issues.
Index analysis
The facial authentication system relied on digital infrastructure that was often inaccessible to contract workers in remote areas or those unfamiliar with digital platforms. Technical limitations and coordination challenges across multiple locations hampered implementation for companies employing temporary workers with frequent onboarding and departures.
Governance controls
The ISF requested a six-month deferral of the mandatory facial authentication requirement and requested that employers be permitted to generate UANs via the employer portal for first-time employees. The federation sought a phased implementation timeline for FAT compliance to allow better coordination with employees and reduce administrative pressure.
Classification
Sources and evidence
Sources not yet published
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