New Delhi, Feb 06: Union Minister of Labour & Employment, Dr. Mansukh Mandaviya today announced that the Employees' Provident Fund Organisation (EPFO) has achieved a historic milestone by crossing the 5 crore claims settlement mark for the first time.
In the financial year 2024-25, EPFO has processed over 5.08 crore claims amounting to Rs. 2,05,932.49 crore, surpassing the 4.45 crore claims worth Rs. 1,82,838.28 crore settled in the previous financial year 2023-24.
Dr. 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.
Dr. 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 FY 2023-24.
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% of transfer claims now require member and employer attestation. Notably, 48% of claims are submitted directly by members without employer intervention, while 44% of transfer requests are generated automatically.
Dr. Mandaviya further emphasized the impact of member profile correction reforms.
"Since the introduction of the simplified procedure, approximately 97.18% of member profile corrections have been self-approved by members, with only 1% requiring employer approval, and office intervention has been reduced to just 0.4%. Further, 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", Union Minister stated.
