EPFO Achieves Milestone by Settling Over 5 Crore Claims in FY25
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Synopsis
The EPFO has set a new record by settling over 5 crore claims in FY 2024-25, marking a significant increase from the previous year. The efficiency in processing claims is attributed to reforms and the automatic settlement system, reducing the need for employer approvals.
Key Takeaways
- EPFO settled a record 5.08 crore claims in FY 2024-25.
- Total payments reached Rs 2.05 lakh crore.
- Automatic claim settlements doubled to 1.87 crore.
- 48% of claims now bypass employer approval.
- Rejected claims at an all-time low of 0.21%.
New Delhi, Feb 6 (NationPress) The Employees' Provident Fund Organisation (EPFO) announced on Thursday that an unprecedented number of over 5 crore claims have been successfully resolved in the financial year (FY) 2024-25.
This represents the highest volume of claims processed by any government agency to date.
The EPFO reported that 5.08 crore claims were settled in FY 2024-25, leading to a total disbursement of Rs 2.05 lakh crore. In comparison, the previous financial year saw 4.45 crore claims settled with a payment of Rs 1.82 lakh crore.
The remarkable surge in claims processed this financial year is attributed to the adoption of reforms and enhancements in the claims process.
Moreover, the scope and categories of automatic claim settlements have expanded significantly, with payments now being made within three days. The number of such automatic claims has surged to 1.87 crore in this financial year, up from 89.52 lakh in FY 2023-24.
Additionally, the EPFO has introduced a profile self-correction feature for its members. The process for transferring Provident Fund (PF) has been streamlined, requiring less approval from employers.
This simplification has allowed 48 percent of claims to be submitted directly to the EPFO without needing employer consent. Furthermore, 44 percent of PF transfers are now conducted through an automated system, with employer approval necessary in only 8 percent of cases.
With the profile self-correction facility, 97.18 percent of connections are approved by members themselves, needing employer approval in only 1 percent of instances, and EPFO officials' approval in just 0.4 percent.
The EPFO also reported a significant drop in rejected claims, with only 0.21 percent facing rejection.
