In a significant change for over 7 crore active subscribers of the Employee Provident Fund Organization (EPFO), members will now receive more interest on their deposited money during claim settlement.
This improvement is part of EPFO’s efforts to ensure fairer payouts and speed up the settlement process.
New Rules for EPF Claim Settlement
The Central Board of Trustees (CBT) of EPFO has revised the rules for interest payments during claim settlement:
Old Rule: Claims settled by the 24th of a month only earned interest up to the end of the previous month.
New Rule: Interest will now be paid up until the actual date of claim settlement.
This ensures that EPF members get their full share of interest, making the system fairer for all.
Benefits of the New Rule
Increased Interest for Members
Previously, members withdrawing claims before the 24th of a month lost potential interest for the remaining days.
With the new system, members will now earn interest until the claim is fully processed, preventing these losses.
Faster and More Efficient Settlements
Under the old rules, claims filed between the 25th and the end of the month were often delayed to avoid interest loss.
The revised rules enable full-month claim processing, reducing delays, improving efficiency, and cutting down the number of pending claims.
EPFO’s Performance in Claim Settlements
EPFO has demonstrated robust claim settlements over recent years:
2023-24: 4.45 crore claims settled, amounting to Rs 1.82 lakh crore.
2024-25 (current year): 3.83 crore claims processed so far, worth Rs 1.57 lakh crore.
This rule change is set to enhance member benefits while maintaining EPFO’s efficient settlement record
