Nation

EPFO Reaches Record 2.16 Crore Auto Claim Settlements in FY25

Published on March 17, 2025

March 17 (IANS) The Employees’ Provident Fund Organisation (EPFO) achieved a historic high of 2.16 crore auto claim settlements during the current financial year (up to March 6), up from 89.52 lakh in FY2023-24, the Parliament was informed on Monday.

Union Minister of State for Labour and Employment, Shobha Karandlaje, informed the Lok Sabha that over 99.31% of claims are now being filed online, eliminating the need for individuals to visit field offices. As of March 6, 2024, a total of 7.14 crore claims have been filed through the online platform for the fiscal year 2024-25.

In addition, the processing of advance claims has been streamlined with an enhanced limit of Rs 1 lakh for auto-mode processing. Advances for illness/hospitalization, housing, education, and marriage are now eligible for auto processing, and currently, 60% of such claims are handled automatically. The auto-mode claims are processed within three days, according to the Employees’ Provident Fund Organisation (EPFO).

The EPFO has also simplified the process for correcting member details. Those with Aadhaar-verified Universal Account Numbers (UANs) can now make corrections themselves, without needing intervention from the EPFO. Presently, about 96% of such corrections are being carried out independently by the members.

Furthermore, the need for employer attestation on Aadhaar-verified UANs for transfer claim submissions has been removed, with only 10% of transfer claims now requiring attestation from both the member and employer. Additionally, the requirement for submitting a cheque-leaf with the claim form has been relaxed for KYC-compliant UANs meeting the necessary criteria.

The EPFO has also introduced a facility for members to de-link their EPF accounts if they were mistakenly or fraudulently linked by establishments. As of February 2025, more than 55,000 members have successfully de-linked their accounts.

The EPFO is further simplifying the claim settlement process by centralizing member databases under the Centralized IT Enabled System (CITES 2.01). In the future, EPFO is planning to launch ‘EPFO 3.0,’ a new system that will allow subscribers to withdraw their provident fund directly from ATMs, providing a more convenient, banking-like experience.