PF money to be released in 3 days; auto-settlement for claims up to ₹5 lakh; 12% interest payable in case of delay..
EPFO New Rule: If you are employed and planning to withdraw your PF funds in the future, there is welcome news. The EPFO has introduced significant changes to make the PF claim settlement process faster and easier. Under the new framework, the aim is to settle eligible PF withdrawal claims within three days. Additionally, the scope of the auto-settlement system has been expanded to allow a larger number of claims to be processed quickly without manual intervention. This ensures that members who meet all the necessary criteria can receive their PF funds in less time than before.
What is the new rule regarding 3-day PF claim settlement?
Under the EPFO's new framework, the target is to settle eligible PF withdrawal claims within three days. Previously, claims often took longer to process due to manual verification and other procedural steps. The new initiative aims to ensure claims are settled within the stipulated timeframe. If a claim is delayed by more than 20 days without a valid reason, the concerned official may be liable for a penal interest of 12%. This measure is designed to enhance official accountability and facilitate timely claim settlement.
However, the three-day rule will not apply to every claim. It will benefit only those individuals whose KYC is complete, whose details are accurate, and whose claims do not require additional scrutiny. Cases requiring verification may still take longer, as was the case previously.
Auto-settlement limit raised to ₹5 lakh
The EPFO is continuously working to make the claim process fully digital and user-friendly. As part of this effort, the auto-settlement limit has been raised from the previous ₹1 lakh to ₹5 lakh. This means a greater number of advance PF claims can now be settled automatically without manual review. This will reduce paperwork, minimize claim rejections, and provide a better experience for members.
How will employees benefit? Following this change, individuals withdrawing PF funds for needs such as medical emergencies, education, marriage, home construction or purchase, and unemployment will receive their money faster than before. Claims can be processed even more rapidly for those whose UAN is linked to Aadhaar, bank account details are updated, and KYC is complete.
It is important to note that there have been no changes to the rules regarding contributions to the EPF. Both the employee and the employer will continue to contribute 12 percent of the employee's basic salary, just as before. The changes have been made solely to make the claim settlement process faster and easier.
What should you do before claiming PF?