EPFO settles record 5-cr claims worth over ₹2 lakh cr in FY25

New Delhi, Feb 6 (PTI) Labour Minister Mansukh Mandaviya on Thursday said retirement fund body EPFO has achieved a historic milestone by crossing the 5-crore claims settlement mark in a fiscal in 2024-25.

In the ongoing FY25, the Employees’ Provident Fund Organisation (EPFO) has processed over 5.08 crore claims amounting to ₹2,05,932.49 crore, surpassing the 4.45 crore claims worth ₹1,82,838.28 crore settled in preceding fiscal 2023-24, according to a labour ministry statement.

Mandaviya highlighted that this remarkable achievement has been made possible due to a series of transformative reforms initiated by EPFO to enhance claim settlement processes and reduce grievances among members.

“We have implemented key measures, including an increase in the ceiling and categories of auto-settled claims, simplified member profile changes, streamlined PF transfers, and improved KYC compliance ratios. These reforms have significantly improved the efficiency of EPFO,” he stated.

A major enabler for faster claim processing has been the auto-claim settlement mechanism, ensuring that claims are settled within three days of submission.

Mandaviya noted that the impact of this reform is evident, with auto claim settlements doubling to 1.87 crore claims in the current financial year, compared to 89.52 lakh auto claims processed during the entire FY24.

Similarly, reforms in the PF transfer claim submission process have streamlined the workflow significantly. Since the introduction of a simplified transfer claim application, only 8 per cent of transfer claims now require member and employer attestation.

Notably, 48 per cent of claims are submitted directly by members without employer intervention, while 44 per cent of transfer requests are generated automatically.

Mandaviya further emphasised the impact of member profile correction reforms.

“Since the introduction of the simplified procedure, approximately 97.18 per cent of member profile corrections have been self-approved by members, with only 1 per cent requiring employer approval, and office intervention has been reduced to just 0.4 per cent.

“Further, the rejection cases have dropped to 1.11 per cent by the employer and 0.21 per cent by the regional office, reflecting the effectiveness of the streamlined processes and reduced procedural bottlenecks in claim settlements”, the Union Minister stated.

Reaffirming the government’s commitment to enhancing ease of access for EPFO members, Mandaviya underscored that the organisation will continue to leverage technology and process simplification to ensure a seamless and efficient service experience.

“These reforms have not only accelerated the claim settlement process but have also contributed to minimising member grievances, further strengthening trust in EPFO,” he added.