New Delhi, February 6: Union Labour and Employment Minister Dr. Mansukh Mandaviya announced that the Employees’ Provident Fund Organisation (EPFO) has reached a significant milestone by settling over 5 crore claims for the first time in its history within a fiscal year. In the financial year 2024-25, EPFO processed more than 5.08 crore claims totaling ₹2,05,932.49 crore, exceeding the previous year’s 4.45 crore claims worth ₹1,82,838.28 crore.
Dr. Mandaviya attributed this achievement to a series of transformative reforms implemented by EPFO aimed at improving claim settlement processes and reducing member grievances. Key measures include an increase in the ceiling and categories of auto-settled claims, simplified member profile changes, streamlined PF transfers, and enhanced KYC compliance ratios, all of which have significantly boosted EPFO’s efficiency.
A crucial factor in expediting claim processing has been the auto-claim settlement mechanism, which ensures claims are settled within three days of submission. The minister noted that the impact of this reform is clear, with auto claim settlements rising to 1.87 crore in the current financial year, compared to 89.52 lakh in FY 2023-24. Additionally, reforms in the PF transfer claim submission process have greatly streamlined workflows, with only 8 percent of transfer claims now requiring member and employer attestation. Notably, 48 percent of claims are submitted directly by members without employer involvement, while 44 percent of transfer requests are generated automatically.
Dr. Mandaviya also highlighted the positive effects of member profile correction reforms. Since the introduction of a simplified procedure, approximately 97.18 percent of member profile corrections have been self-approved by members, with only 1 percent needing employer approval, and office intervention reduced to just 0.4 percent. Furthermore, rejection rates have decreased to 1.11 percent by employers and 0.21 percent by the regional office, showcasing the effectiveness of the streamlined processes.
Reaffirming the government’s commitment to enhancing accessibility for EPFO members, Dr. Mandaviya emphasized that the organization will continue to utilize technology and process simplification to provide a seamless and efficient service experience. He concluded that these reforms have not only accelerated the claim settlement process but have also minimized member grievances, thereby strengthening trust in EPFO.
