Employees’ Provident Fund Organisation (EPFO) has significantly improved its claim settlement process, resolving nearly 50% of claims within just three days.
As of June 5, 2025, the organization has processed 68.96 lakh claims, marking a major milestone in its automation-driven efficiency strategy.
EPFO is preparing to increase the automated claim settlement limit from ₹1 lakh to ₹5 lakh, aiming to streamline processing times.
This adjustment will ensure faster claim settlements, benefiting a larger number of recipients.
EPFO Claim Settlement Performance
Between April 1 and June 5, 2025, EPFO processed 68.96 lakh claims, primarily related to partial withdrawals for reasons such as illness, education, housing, and marriage.
This accounts for close to 50% of total claims filed during this period.
For the entire fiscal year 2024–25, EPFO has processed 2.34 crore claims, with approximately 39% settled within three days.
The organization aims to further streamline operations by leveraging automation and digital verification tools.
Automated Claim Settlement Limit to Rise
Currently, withdrawal claims of up to ₹1 lakh are eligible for automated processing, provided all requirements are met.
However, EPFO is preparing to increase this limit to ₹5 lakh, a move that does not require approval from the Central Board of Trustees (CBT).
The Central Provident Fund Commissioner will issue a directive to execute the decision efficiently.
This approach ensures swift implementation without unnecessary bureaucratic delays.
Challenges in Claim Processing
Despite automation, EPFO faces challenges in verifying legacy data, particularly for members enrolled before 2012.
This verification process frequently causes delays in claim settlements, affecting beneficiaries awaiting fund disbursement.
As a result, the organization struggles to meet its target of processing all claims—including pension payouts and full provident fund withdrawals—within 72 hours.
EPFO manages a vast network with over 7 crore contributing members, handling a high volume of claims annually.
In FY25 alone, more than 5 crore claims were filed, and its shift to automation is expected to significantly reduce workload and enhance service efficiency.
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