The Employees' Provident Fund Organisation (EPFO) disclosed a notable increase in membership, with a net addition of 15.62 lakh members reported in December 2023, according to payroll data released on February 20, as reported by PTI. This marks a 4.62% rise from December 2022, signaling positive growth in the organized workforce.

 

However, despite this surge in membership, the EPFO is grappling with challenges in claims processing. Recent reports reveal that the EPFO has rejected every third claim it received, causing concerns among subscribers regarding the delay in claim settlement. Grievances regarding this issue have been raised by several subscribers through the official EPFO handle on social media platforms.

 

The EPFO, known as the world's largest social security organization with over 277 million accounts and a corpus of nearly Rs20 lakh crore, has faced criticism for its claims rejection rates. Out of the total 73.87 lakh claims received for final PF settlement in the financial year 2022-23, a staggering 33.8% (24.93 lakh) were rejected, according to official data. This rejection rate represents a significant increase compared to previous years, with rejection rates standing at nearly 13% and 18.2% in 2017-18 and 2018-19, respectively.

 

Responding to queries, the EPFO stated that it typically takes 20 days to settle a claim or release the PF amount if all required documents are submitted correctly to the concerned EPFO office. Despite efforts to streamline processes, claims rejection remains a persistent issue for EPFO subscribers.

 

The surge in membership, as reported in December 2023, is attributed to factors such as increased employment opportunities and growing awareness of employee benefits. Approximately 8.41 lakh new members were enrolled during this period, reflecting a 14.21% increase compared to November 2023. Notably, the majority of new members, constituting 57.18%, belong to the 18-25 age group, indicating a trend where youth and first-time job seekers are joining the organized workforce in significant numbers.

 

While the EPFO's efforts to expand its membership base are commendable, addressing the challenges in claims processing remains a priority to ensure timely and efficient delivery of benefits to subscribers.