The Employees’ Provident Fund Organization (EPFO) has made a significant decision, providing relief to over 80 million subscribers. Now, if the full amount cannot be released during the final PF settlement, instead of rejecting the claim, a partial payment will be made from the available funds.
In a recent directive to all regional and zonal offices, the Central Provident Fund Commissioner (CPFC) stated that final PF claims are often rejected, citing reasons such as non-transfer of old PF accounts, etc. This causes unnecessary financial hardship to employees.
Permission granted under the procedure manual
The EPFO clarified that under the provisions of the Accounting Procedures Manual (MAP), in such a situation, instead of rejecting the claim, a part-payment can be made. This means that the amount available in the member’s account will be paid.
In what cases will partial payment be made?
- As per the manual, partial payment can be made in 5 situations-
- When the contribution has not been deposited by the employer.
- Form 3A has not been received.
- The full amount of the old contribution may not have been received.
- The PF transfer amount has not been received from the previous institution.
- When the eligible subscriber has not claimed the full amount.
What will be the process and how will it be monitored?
The EPFO has stated that all partial payment cases should be recorded in a “part payment register.” This will be reviewed monthly, and as soon as the remaining amount becomes available, the payment will be made directly without any fresh claim.
EPFO had made reforms
his decision comes at a time when the EPFO has recently implemented several reforms. Members now have access to all services and PF account information through a single login portal. Furthermore, approval layers have been reduced to speed up the claim settlement process.
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