EPFO settled record 5 crore claims worth Rs 2 lakh crore in FY25: Govt

NEW DELHI: Marking a historic first, the Employees' Provident Fund Organisation has successfully settled over five crore claims in the 2024-25 financial year, announced Union minister Mansukh Mandaviya on Thursday. He said, EPFO processed close to 5.1 crore claims, amounting to Rs. 2,05,932.49 crore, surpassing last year's record of 4.5 crore claims worth Rs. 1,82,838.28 crore.

Mandaviya attributed this success to a series of reforms designed to streamline claim settlements and reduce grievances. "Our strategic reforms, including the expansion of auto-settled claims, simplified member profile changes, and enhanced KYC compliance, have significantly boosted EPFO's efficiency," he said.

A key factor behind the increased claim settlements is the auto-claim settlement mechanism, which has drastically improved processing speed. Mandaviya informed that auto-claim settlements have more than doubled to nearly 1.9 crore in FY 2024-25, compared to just 89.5 lakh in FY 2023-24.

Further streamlining has been achieved in the PF transfer process. The introduction of a simplified transfer claim application has resulted in only 8% of claims now requiring both member and employer attestation, down from higher figures in the past. Notably, 48% of claims are now submitted directly by members, and 44% of transfer requests are processed automatically.

Member profile corrections have also seen a significant improvement, with 97.2% of updates now self-approved by members. Only 1% require employer approval, while office intervention has dropped to just 0.4%. The rejection rate has also plummeted, with employer rejections at 1.1% and regional office rejections at a mere 0.2%.