Have you also not received the claim filed in EPFO? The Employees’ Provident Fund Organization (EPFO) is rejecting every third claim it receives. Many customers have raised their complaints regarding delay in claim settlement on the official e-handle of EPFO. Know how much time it takes for the claim to be cleared
Have you also not received the claim filed in EPFO? The Employees’ Provident Fund Organization (EPFO) is rejecting every third claim it receives. Many customers have raised their complaints related to the delay in settlement of claims on the official e-handle of EPFO. Responding to a question on non-receipt of claim, the pension body said that if a claim is submitted to the concerned EPFO office, it generally takes 20 days to settle it or release the PF amount.
EPFO is the world’s largest social security organization with over 277 million accounts and a corpus of approximately Rs 20 lakh crore. For the final settlement of PF claims in the financial year 2022-23, out of the total 73.87 lakh claims, 33.8 percent (24.93 lakh) were rejected. Meanwhile, official data shows that Rs 46.66 lakh were settled and Rs 2.18 lakh were shown as closing balance.
Dear member , normally it takes 20 days to settle a claim or release the PF amount, if the same is submitted to concerned EPFO Office in complete. https://t.co/T4vDtSVZQM
— EPFO (@socialepfo) February 21, 2024
This was much higher than the claim rejection rate in 2017-18 and 2018-19, when it was 13 per cent and 18.2 per cent respectively. The percentage of claims rejected out of total applications for claims stood at 24.1 per cent in 2019-20 and 30.8 per cent in 2020-21. This data will be more in 2021-22. Then 35.2 claims were rejected. That is, the percentage of rejected claims was more than one-third of the total claims. The percentage of rejected claims has increased in the last five years. However, there has been a slight decline from 2021-21 to 2022-23.
In October last year, Employees’ Provident Fund Organization (EPFO) officials had expressed their concern about being under extreme pressure. This pressure has arisen due to the recent withdrawal of manual annual account update by EPFO. EPFO says that any claim is settled in 20 days. If this does not happen they are held responsible.
Apart from this, the Central Board of Trustees EPFO on February 10 has recommended an annual interest rate of 8.25 percent on EPF in the accounts of members for the financial year 2023-24.
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