EPFO Claim Rejection Rate at 26% in 2023-24
TL;DR
EPFO, meant to safeguard retirement savings, is rejecting over 1 in 4 claims, i.e.160 lakh in 2023–24 alone, leaving lakhs without access to their own money. Grievances have surged sixfold since 2012, pointing to growing dysfunction in India’s largest social security system.
Context
The Employees’ Provident Fund Organisation (EPFO) is meant to safeguard the retirement savings of crores of Indian workers. But it has now become a formidable obstacle standing between workers and their financial security. The agency’s rejection patterns expose a deeply troubling reality with a staggering denial rate. These rejections lead to serious concerns about how accessible and accountable the EPFO really is.
Who compiles this data?
The EPFO publishes detailed data on claims and rejections in its annual reports, including zone-wise figures and timelines for settlements.
Where can I download clean & structured data related to EPFO Claims and rejections?
Clean, structured, and ready-to-use datasets related to EPFO claims and rejections can be downloaded from Dataful.
Key Insights
- As of 31 March 2024, there are 32.56 crore members under the EPF. A ‘member’ is defined as someone who has a PF balance in their EPFO account.
- In 2023-24, a total of 623 lakh claims were received, of which nearly 160 lakh (26%) were rejected. Around 20 lakh claims remain pending.
- The average rejection rate stood at 27% between 2019-20 and 2023-24, compared to 17% during the period from 2014-15 to 2018-19.
- The EPF Internet Grievance Management System recorded more than 1.6 million grievances during the 2023-24 fiscal year, a six-fold surge from just 2,50,000 complaints filed in 2012-13.
- The nature of these complaints reveals persistent operational breakdowns across core services. Nearly half of all grievances stem from four critical areas: Non-transfer of PF accumulations, Final PF Withdrawal, KYC issue of subscriber at PF Office, and Non-settlement of PF Advance claims.
Why does it matter?
India’s provident fund system is meant to support workers during critical times like job changes, health issues, or retirement. But growing delays and rejections have left many without timely access to their own savings, adding stress when they need relief the most. With over 25 crore members relying on it, even a small rejection rate impacts lakhs.
Key numbers
- Total EPFO members: 32.56 crore
- Total claims in 2023–24: 624 lakhs
- Rejected claims: 160 lakhs
- Settled claims: 445 lakhs
- Grievances on EPFiGMS
- In 2023–24: 16,14,386
- In 2012–13: 2,48,072