The Employees’ Provident Fund Organization (EPFO) has introduced a significant change in its rules for claim settlement. This move is set to benefit nearly 7 crore active subscribers by providing higher interest payouts on their provident fund money. The updated rule ensures that interest is calculated until the exact date of claim settlement, unlike earlier provisions.
Key Change in Claim Settlement Rules
Previously, under Paragraph 60(2)(b) of the EPF Scheme 1952, members withdrawing funds before the 24th of a month received interest only up to the end of the previous month. This often resulted in a loss of interest for subscribers. However, with the new amendment approved by the Central Board of Trustees (CBT), interest will now accrue until the date the claim is settled.
This change will lead to better returns for EPF members and is expected to reduce complaints about interest losses.
How the New Rule Benefits EPF Subscribers
The revised rule offers multiple advantages to EPF subscribers:
- Higher Interest Earnings: Interest will now be paid until the settlement date, ensuring members earn for the entire period their funds are in the EPF account.
- Reduced Complaints: Earlier, members often faced dissatisfaction due to lost interest when funds were withdrawn mid-month. This update addresses that issue.
- Faster Processing: With streamlined claim settlement rules, EPFO aims to process claims more efficiently, reducing delays.
Improved Interest Payment for Entire Month
Under the earlier system, claims between the 25th and the end of the month were not processed to avoid interest loss. Now, the updated rule enables processing throughout the month, ensuring timely claim settlements. This adjustment will also help EPFO manage resources better and reduce pending cases.
EPFO’s Achievements in Claims Settlement
In the financial year 2023-24, EPFO settled over 4.45 crore claims, amounting to Rs 1.82 lakh crore. For the current year 2024-25, 3.83 crore claims worth Rs 1.57 lakh crore have already been processed. With the updated rule, the organization aims to enhance efficiency further, benefiting millions of subscribers.
EPFO’s latest move is a step towards ensuring better financial returns for its members and addressing long-standing grievances about interest calculations. The new rule is expected to provide a smoother experience for subscribers while maximizing their benefits.
