Is Your EPF Claim Stuck? Discover Why Rejections Are on the Rise and How to Navigate the Challenges

 

By Satendra Singh

A few years ago, Noida resident Manoj Mishra’s financial plans nearly fell apart when he faced unexpected difficulties with his Employee Provident Fund (EPF) claims. Despite nearly 40 years of service, the process of withdrawing his hard-earned savings became a nightmare. He had changed his job multiple times over the years, but updating and consolidating his EPF account details proved to be a cumbersome process. The chaos he faced highlighted several irregularities within the EPF system. His experience isn’t unique—many subscribers are left in limbo when attempting to access their own funds.

Every employee is assigned a unique Universal Account Number (UAN) linked to their EPF account, which tracks their contributions over the years. Any discrepancies in the details—such as mismatches in personal information like name or date of birth, or differences in bank account details—can lead to complications. In Srinivasan’s case, his account details were partially incorrect, and the employer was unresponsive, leading to an arduous 18-month delay before he could access his money.

Rising Number of EPF Claim Rejections

EPF claim rejections have been increasing steadily. According to recent data, approximately 4.12 lakh claims were rejected in 2022-23, owing to various issues. The grievances portal of the EPFO recorded a significant number of complaints, particularly related to:

• Incorrect KYC details
• Problems with nomination details
• Discrepancies in employer records

Many of these issues occur when employees switch jobs but fail to update or consolidate their EPF details accurately. Additionally, the introduction of the new e-nomination process has created confusion and added hurdles, especially when claims require withdrawals from multiple accounts or involve the transfer of unclaimed funds.

Key Issues Faced by EPF Members

The most common problems EPF members face include:

1. Incorrect KYC Information: Mismatches in KYC details—like PAN or Aadhaar numbers—lead to claim rejections.
2. Multiple UANs: Employees who switch jobs often end up with multiple UANs, causing confusion during withdrawals.
3. Inactive Accounts: Accounts that remain inactive for long periods or have not been linked to the latest employer can lead to delays or rejections.
4. Withdrawal Complexities: Employees find it challenging to withdraw from the EPF due to the complex online processes and the frequent need for employer verification.

Strategies to Resolve EPF Issues

Satendra Singh advises that many are facing difficulties with their EPF claims. "The most troubling experience for EPF members is the ambiguity around rejection reasons," Satendra explains. To combat this, employees must ensure all details are correctly updated and verified on the EPF portal.

The Aadhaar OTP-based login for claims can help resolve some issues, but it still requires users to regularly update their information and ensure all previous employers have correctly linked their details.

If an employee’s claim gets stuck, they are advised to reach out to the EPFO’s grievance portal immediately. The data reveals that 78% of grievances are resolved within 15 days—though this can stretch to more than 30 days for some cases.

Solutions and Expert Advice

Hydrabad-based HR professional Anubhav Rathi highlights that the EPF process has become more streamlined recently, but there are still pitfalls, especially for those who have worked across multiple employers or in different states. For claimants facing long delays, Rathi recommends using the EPFO’s social media channels or directly contacting the regional offices to expedite the process.

In a nutshell, EPF claims may be a drawn-out process, but being proactive can make a huge difference. Subscribers should ensure all KYC details are updated, maintain records of their employment history, and communicate actively with their employers to smoothen the withdrawal process. With some patience and persistence, accessing your EPF savings can become a more straightforward journey.

Quick Tips for EPF Claim Success:

1. Ensure KYC Details Are Up to date: Verify all your details are correct on the EPF portal.
2. Consolidate Multiple UANs: If you have more than one UAN, merge them to prevent complications.
3. Use the EPFO Grievance Portal: Raise grievances online to track and resolve issues promptly.
4. Communicate with Previous Employers: Make sure all your employment details are consistent and verified.

By taking these steps, employees can avoid the common pitfalls that lead to EPF claim rejections and ensure their financial planning stays on track.