EPFO's smart upgrade: Claims processing accelerated by 30%

The Employees' Provident Fund Organisation (EPFO) has boosted claims processing speed by 30% year-on-year with a new software upgrade, alleviating subscriber frustrations.

The Employees Provident Fund Organisation (EPFO) has recently experienced a significant increase in claims processing, with a year-on-year rise of approximately 30 percent during August and September. This improvement is primarily attributed to a major software upgrade implemented by the organisation, which has enhanced the efficiency of its digital platform.

Previously, the slow pace of claims settlement had been a major concern for subscribers, particularly those needing to withdraw funds for urgent financial needs.

The EPFO is also planning further hardware upgrades and additional software enhancements to sustain this momentum. The new system, developed by the Centre for Development of Advanced Computing (C-DAC), has been instrumental in reducing claim rejections, which had surged from around 13 percent in the 2017-18 period to nearly 34 percent in 2022-23.

Official data indicates that out of 5.2 crores of total claims made in 2022-23, covering final settlements, transfers, and withdrawals, about 25.8 percent were rejected.

The rise in rejection rates was largely due to discrepancies between the data held by EPFO and the information provided by claimants, as well as technical issues within the IT infrastructure.

However, following the recent software upgrade, improvements have been noted in both claim processing speed and accuracy. In addition to these advancements, the government is working on establishing a centralised database for EPFO that will streamline payment systems and maintain subscriber records in one location, even if members change jobs or locations.

This initiative is expected to be operational within two months. Furthermore, recent policy changes have relaxed certain documentation requirements for claims, which had previously led to over 10% of partial withdrawal cases being rejected due to missing documents. These reforms aim to enhance the user experience and promote ease of living for EPFO subscribers.