On March 17th, 2025, the Ministry of Labour & Employment released an update detailing the significant steps taken by the Employees’ Provident Fund Organisation (EPFO) to streamline and improve the claim settlement process for its members. These reforms aim to ensure quicker, hassle-free claim processing and better accessibility for EPFO subscribers.
Key Steps Taken by EPFO
Auto Mode Processing for Advances:
- EPFO has increased the auto-processing limit for advance claims to Rs. 1 lakh. This includes not only advances for illness and hospitalization, but also for housing, education, and marriage.
- As a result, 60% of advance claims are now processed in auto mode, with settlements completed within three days.
- EPFO set a historic milestone by processing 2.16 crore auto-claims as of March 6, 2025, compared to 89.52 lakh auto-claims in FY 2023-24.
Simplified Member Details Correction:
- For members with Aadhaar-verified Universal Account Numbers (UAN), the process to correct personal details has been simplified. Members can now make corrections to their IDs themselves without requiring intervention from the EPFO office.
- This has led to 96% of corrections being processed automatically by the members.
Online Claim Submissions:
- Over 99.31% of claims are now submitted online, removing the need for members to physically visit EPFO offices. In FY 2024-25 alone, 7.14 crore claims were filed online as of March 6, 2025.
Simplified Transfer Claim Submission:
- The requirement for employer’s attestation of Aadhaar-verified UANs for transfer claims has been removed. Now, only 10% of transfer claims require attestation from both the member and employer.
Relaxation of Cheque-Leaf Requirement:
- The requirement to submit a cheque leaf along with the claim form has been relaxed for KYC-compliant UANs that meet the prescribed criteria.
De-linking Facilities for Erroneous Accounts:
- EPFO introduced a de-linking facility for members whose EPF accounts have been mistakenly or fraudulently linked by employers. Since its launch on January 18, 2025, more than 55,000 members have successfully de-linked their accounts by the end of February 2025.
Upfront Validations for Eligibility:
- New upfront validations have been implemented to inform members about the eligibility and admissibility of claims before submission. This ensures that members do not file ineligible claims, enhancing accuracy in the process.
Centralized IT System for Better Efficiency:
- The claim settlement process has been further streamlined with the Centralized IT Enabled System (CITES 2.01), centralizing member databases and making the entire process more efficient.
