Employees Provident Fund Organization
In the new social security schemes of the Employees’ Provident Fund Organization (EPFO), digital services and timely claim settlement have been given utmost importance. Under the new rules, if claims related to PF withdrawal, pension or insurance are not made on time, then the concerned officer may have to pay the compensation.
Actually, the Ministry of Labor and Employment has notified three new schemes under the Social Security Code. In which Employees’ Provident Fund Organization’s Employees’ Provident Fund Scheme, 2026, Employees’ Pension Scheme, 2026 and Deposit-Linked Insurance Scheme, 2026 have been included. These new schemes will replace the old rules. This step of EPFO will give a boost to the digital process.
Claim will have to be settled in 20 days
According to the new rules, if PF withdrawal, pension or insurance claim is not settled within 20 days despite all the necessary documents and formalities being completed, then the concerned commissioner or officer will be held responsible. In such a situation, penal interest at the rate of 12% per annum will be imposed on the benefit amount for the period of delay.
Interest will be deducted from officer’s salary
The biggest thing is that this interest can be recovered not from EPFO funds, but from the salary of the responsible officer. Its purpose is to fix accountability of officers and to speed up the claim process.
What was the rule earlier?
Earlier also there was a provision of penal interest on delay in claim, but its rate was equal to the PF interest rate declared by EPFO. Now it has been changed to a fixed rate of 12% per annum. No major changes have been made in the contribution rules of employees and employers in the new schemes. Employees will contribute 12% of their basic salary as before. Employers will also continue to contribute 12%. Of the employer’s contribution, 8.33% will go to the Employee Pension Scheme. The central government will contribute 1.16% as before.
Emphasis on digital compliance
A major focus of the new schemes is to strengthen digital services. Its objective is that EPFO members can avail all the services through online medium without visiting offices. Under this scheme, e-filing of claims and applications will be promoted. EPFO exempted establishments and PF trusts will also have to make arrangements for online submission of documents. Members will be able to get PF withdrawal, pension and insurance services in a faster and transparent manner.
What does this mean for employees?
Delay in settlement of PF and pension claims will be reduced. Accountability of officers will increase. Due to online process, less paperwork and faster service will be available. It will be easy to track the status of the claim digitally.
