EPFO processes record 5.08 crore claims worth Rs 2.05 lakh crore this fiscal

The Employees’ Provident Fund Orgnaisation has crossed the 5-crore claims settlement mark for the first time in its history in this fiscal on the back of several reforms being undertaken to ease processes as well as upgrade the IT software of the retirement fund manager.

As per official data, EPFO has processed over 5.08 crore claims amounting to over Rs 2.05 lakh crore in the current financial year, 2024-25, surpassing the 4.45 crore claims worth Rs 1.82 lakh crore settled last fiscal.

Sources highlighted that this achievement was possible due to a series of reforms initiated by EPFO aimed at enhancing claim settlement processes and reducing grievances among members. “Key measures undertaken include an increase in the ceiling and categories of auto-settled claims, enabling simple self-correction of member profile and simplified provident fund transfer by removing employer approval,” the pointed out.

The auto-claim settlement, where the payment is credited to member accounts within three days doubled to 1.87 crore claims in the current financial year from 89.52 lakh auto claims processed during the whole of FY24.

Similarly, the PF transfer claim submission process has been simplified by removing employer approval in most cases, which has streamlined the workflow significantly. As a result, 48% of claims are submitted directly by members to EPFO without employer intervention, while 44% of transfer requests are generated automatically by the system itself. Only 8% of transfer claims now require employer verification before submission to EPFO, said the source.

Self-correction of member profile was also enabled recently and now 97.18% of member profile corrections are being self-approved by members. Only 1% of the corrections require approval by employer and 0.4% of the cases require approval by EPFO officers.

The rejection cases have dropped to 1.11% by the employer and 0.21% by the regional office, reflecting the effectiveness of the streamlined processes and reduced procedural bottlenecks in claim settlements.