The Employees’ Provident Fund Organisation (EPFO) has rejected some one-third of the total Employees’ Provident Fund (EPF) claims received in FY2022-23, a significant increase from the previous years. The claim rejection rate has been rising from 13 per cent in 2017-18 to 18.2 per cent in 2018-19, and 33.8 per cent in 2022-23, the Indian Express reported citing official data. So let’s understand how to avoid EPF claim rejection.

EPF has around 27.7 crore members, making it one of the country’s biggest social security schemes. Under the scheme, both the employee and the employer contribute a certain amount monthly. It provides tax benefits in the contributory phase besides a monthly pension and a lumpsum payment at retirement. A member can make a partial withdraw under certain circumstances like a medical emergency, job loss or unemployment for at least two months.

However, despite the scheme’s success, a significant number of claims for final settlements, withdrawals, and transfers get rejected for various reasons.

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What Are The Reasons For Claim Rejection?

A member can raise a complaint for various reasons under the EPFO. Data shows that the rejection rate has increased mainly in cases of final settlement, withdrawal, and account transfer.

The claims primarily get rejected due to incomplete details, mistakes in the claim forms, and other claim-related issues. The EPFO’s IT infrastructure is also to be blamed as it cannot keep pace with the high traffic on the site despite the transition to digital mode for all purposes.

In the manual process, the members seek assistance from the EPFO helpdesk in filling up the claim form and correcting mistakes, if any, during the application process.

Additionally, it has been observed that self-filled claim forms has led to increased rejection rates due to errors like mismatch in personal information, incomplete know-your-customer (KYC) details, wrong bank information, etc. Hence, self-filing forms saw more rejections than those who should help from EPFO helpdesk.

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What Can You Do To Mitigate Claim Rejection?

Ensure accurate and complete information when submitting claim forms to avoid EPF claim rejections. Ensure that you select the correct form and review the details for common errors before submitting. Additionally, EPFO also holds camps on the 27th of each month in different districts across the country to help member resolve their claim-related issues.

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