The variety of complete claims settled by the retirement fund physique Workers’ Provident Fund Organisation (EPFO) elevated 7.8 per cent year-on-year to 4.45 crore in 2023-24 from 4.13 crore within the earlier 12 months, as per the most recent knowledge shared by the Ministry of Labour and Employment on Sunday. The variety of contributing members below the EPFO have additionally elevated 7.6 per cent to 7.37 crore in 2023-24 from 6.85 crore within the earlier 12 months, whereas the variety of contributing institutions below the EPFO have elevated by 6.6 per cent to 7.66 lakh in 2023-24 from 7.18 lakh, the information confirmed.
The full claims of 4.45 crore settled by the EPFO consists of all claims for ultimate provident fund settlement, PF switch, half withdrawal, pension, pension withdrawal and Workers’ Deposit-Linked Insurance coverage Scheme (EDLI). This was accompanied by a rise of 55.4 per cent in realisation of arrear dues by the EPFO from the contributing organisations to Rs 5,268 crore from Rs 3,390 crore within the earlier 12 months.
The most recent numbers had been introduced in the course of the 109th assembly of the Govt Committee, Central Board of the retirement fund physique chaired by Labour Secretary Sumita Dawra on November 8 the place the Annual Report for the 12 months 2023-24 was taken up for dialogue. The assembly of the Govt Committee final week got here forward of the assembly of the Central Board of Trustees of the EPFO on November 23 and the 72nd EPFO Basis Day on November 15. The annual report for 2023-24 will probably be taken up for dialogue within the upcoming CBT assembly together with dialogue on pension, centralised pension cost and audited accounts for 2021-22 and 2022-23.
Reform agenda for the EPFO was the important thing matter of debate within the assembly held final week. Whereas noting that the velocity for EPFO procedures has improved after the up to date software program for discipline functions was put in place throughout the nation, the Ministry mentioned “common and shut evaluate of EPFO workplaces is to stay a precedence”. It has been determined that the Govt Committee will meet month-to-month for the subsequent few months to “usually monitor and evaluate the reform agenda”, together with modernisation initiatives and different ongoing initiatives.
The excessive fee of rejection of EPF claims has been a priority for the retirement fund physique and the Ministry has been taking measures to enhance the claims settlement fee. In February this 12 months, The Indian Categorical had reported that the rejection charges of PF ultimate settlement had surged, up from round 13 per cent in 2017-18 to almost 34 per cent in 2022-23. The rejection fee, calculated as a share of rejected claims out of complete functions for claims, had elevated from round 13 per cent in 2017-18 to 18.2 per cent in 2018-19 to 24.1 per cent in 2019-20, 30.8 per cent in 2020-21 and 35.2 per cent in 2021-22 for ultimate PF settlement claims. General, in 2022-23, the entire claims for ultimate PF settlement, switch claims, and half withdrawal claims for the EPFO had been 5.21 crore, as per the Annual Report for 2022-23. Out of this, 1.34 crore or 25.8 per cent claims had been rejected, whereas 3.77 crore or 72.4 per cent claims had been settled. About 9.38 lakh or 1.8 per cent claims remained as closing stability on the finish of 2022-23.
Within the November 8 assembly, a number of different proposals associated to info expertise, administrative and monetary issues of the EPFO had been mentioned. The current leisure within the standards for auto-settlement of claims such because the ceiling in addition to the classes for declare by the EPFO earlier this 12 months had been additionally mentioned within the assembly. In Could, the EPFO had hiked the ceiling for auto-mode settlement of advance claims for schooling, marriage and housing to Rs 1 lakh from Rs 50,000. Steps to allow centralised pension cost in addition to the interventions for bettering IT-related software program and {hardware} had been additionally mentioned within the Govt Committee assembly together with timelines for completion of overhaul of the IT system of the EPFO, the Ministry mentioned.
The Govt Committee additionally mentioned the draft of the New Compassionate Appointment Coverage, 2024, which goals to carry reduction to the dependents and wards of many workers of EPFO, who had died on obligation, primarily in the course of the Covid pandemic interval. It additionally authorized the hiring of two chartered accountant corporations for the preparation of annual monetary statements of the EPFO, and to facilitate the automation of the method of preparation of economic statements, the Ministry mentioned. “This may make sure that the annual accounts are ready well timed, and herald professionalism and newest practices within the course of,” it mentioned.
