EPFO Allows Part Payments in PF Settlements to Prevent Financial Distress

The Employees’ Provident Fund Organisation (EPFO) has directed its regional and zonal offices to process part payments in provident fund (PF) settlement claims instead of rejecting them outright in certain cases. The move is aimed at reducing financial hardship for members facing settlement delays due to employer defaults or transfer-related issues.

Key Highlights:

New EPFO Directive

• Offices should not reject PF settlement claims in cases of incomplete contributions or transfer delays.
• Instead, part payments of available accumulations must be processed.
• This aligns with para 10.11 of the Manual of Accounting Procedure (MAP) Part-IIA, which allows such settlements.

Situations Eligible for Part Payments

According to EPFO’s accounting manual, part payments can be made in the following cases:

1. Defaulting establishments (non-remittance of employer contribution).
2. Non-receipt of Form 3A (annual contribution details).
3. Past accumulations not realised in full.
4. Transfer of PF accumulations not received from previous employer.
5. Partial claims where the eligible person has not claimed the full amount.

Monitoring and Process

• All part payment cases must be recorded in a register of part-payments.
• Offices must review cases every month.
• Once the pending amount becomes available, the office should make further payments automatically, without requiring a fresh claim from members.

Recent Digital Reforms by EPFO

• Members can now access all key services and PF details with a single login on the EPFO portal.
• These measures are part of EPFO’s ongoing efforts to improve ease of access and timely settlement of claims.