EPFO rejecting every 3rd Claim: Understanding the Reasons Behind

New Delhi:

Many individuals are experiencing frustration and disappointment as their claims filed with the Employees’ Provident Fund Organization (EPFO) are being rejected at an alarming rate.

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Complaints regarding delayed settlements have flooded the official channels of EPFO,

raising questions about the efficiency of the process.

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Unprecedented Rejection Rates:

EPFO, touted as the world’s largest social security organization, faces scrutiny as every third claim it receives is rejected.

In the financial year 2022-23, out of 73.87 lakh claims filed for final PF settlement, a staggering 33.8 percent (24.93 lakh) were rejected.

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This rejection rate marks a significant increase compared to previous years,

with rejection rates ranging from 13 percent to 30.8 percent in preceding financial years.

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Factors Contributing to Rejections:

EPFO officials attribute the surge in rejection rates to extreme pressure resulting from the cessation of manual annual account updates.

Despite EPFO’s assertion that claims should be settled within 20 days, delays and rejections persist, leading to widespread dissatisfaction among members.


Data suggests a steady increase in rejection rates over the past five years,

highlighting systemic issues within the organization.


Calls for Accountability:

EPFO officials face mounting pressure to address the challenges plaguing the claims settlement process and ensure timely resolution of claims.

Members demand transparency and accountability from EPFO, emphasizing the need for effective measures to streamline operations and minimize rejection rates.

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Recent Developments and Recommendations:

In response to the ongoing concerns, the Central Board of Trustees EPFO recommended an annual interest rate of 8.25 percent on EPF accounts for the financial year 2023-24.

This move aims to alleviate some of the grievances faced by members while underscoring the need for comprehensive reforms within EPFO to enhance efficiency and customer satisfaction.

As EPFO grapples with mounting criticism and challenges, stakeholders urge swift action to address the root causes of claim rejections and ensure a smoother,

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more transparent claims settlement process for all members.


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