EPFO mandates PF, pension claim settlement within 20 days — What to do if it's delayed?
EPFO now settles provident fund, pension, and insurance claims within 20 days, imposing a 12% penalty for delays and providing grievance options.Summary
The Employees' Provident Fund Organisation (EPFO) has introduced a new rule that requires the settlement of provident fund, pension, and deposit‑linked insurance claims within 20 days of receipt of a complete application. If the EPFO fails to meet this deadline without a valid reason, a fixed penal interest of 12% per annum is levied on the benefit amount, which can be recovered from the Commissioner’s salary. Employees whose claims remain pending beyond the 20‑day window can file complaints through the EPFO grievance redressal mechanism, including the EPFiGMS portal and by approaching the Regional PF Commissioner. The reforms do not alter the existing EPF contribution structure—employees and employers continue to contribute 12% of basic wages, with 8.33% of the employer’s share earmarked for the Employees’ Pension Scheme and 1.16% for the central government. The primary aim of the new schemes is to accelerate processing, strengthen digital compliance, and provide clear recourse for delayed settlements.
(Source：Google News)