EPFO Claim Settlement Data from FY 2014-15 to FY 2024-25: Trends and Improvements
The Employees’ Provident Fund Organisation (EPFO) has historically struggled with criticism due to delays in settling member claims, prompting efforts to enhance the user experience under EPFO 3.0.
- Recent data, however, shows noticeable improvement in claim settlement performance during FY2024-25 compared to preceding years.
- Increased efficiency is vital as EPFO manages savings critical to millions of employees across India.
Claims Received and Settled (2014-2025)
Between FY 2014-15 and March 7, 2025, EPFO received approximately eight crore claims, according to the information provided by Shobha Karandlaje, Minister of State for Labour and Employment, in Parliament.
- During this period, EPFO settled only a portion of these claims—about 54% to 98% annually—reflecting inconsistent performance.
- Notably, EPFO distributed ₹29,965 crore in FY 2014-15, increasing substantially to ₹41,385 crore by FY 2022-23, and further rising sharply to ₹55,133 crore by FY 2024-25.
Annual Trend in EPFO Claim Settlements
Between FY 2014-15 and FY 2024-25, the number of EPFO member accounts surged significantly—from 11.78 crore to approximately 32.56 crore.
- Such rapid growth highlights the increasing importance and challenges of efficient claim settlement.
- EPFO’s improved settlement figures in recent years indicate better alignment with the growing demands of its members.
Highest and Lowest Claim Settlements
The highest settlement rate occurred in FY 2017-18, with EPFO successfully resolving approximately 98.5% of total claims received.
- This period marked EPFO’s best performance, settling 64.22 lakh claims out of approximately 65.22 lakh filed.
Conversely, EPFO recorded its lowest claim settlement percentage of 54.1% during FY 2022-23, despite receiving the highest number of claims (over 87 lakh).
- This significant drop in performance underlined existing system challenges and inefficiencies.
- Additionally, FY 2023-24 also exhibited low settlement rates at just 64.5%, reflecting ongoing concerns regarding service consistency.
Historical Trends in EPFO Claim Settlements
Between FY 2014-15 and FY 2024-25, EPFO achieved a claim settlement rate of over 90% only twice—in FY 2014-15 and 2017-18.
- These two financial years represented peaks in EPFO’s settlement performance, driven by targeted administrative improvements.
- In contrast, EPFO settled between 80% to 90% of claims in FY 2016-17 and 2020-21, demonstrating moderate efficiency amid increased pressures, including the COVID-19 pandemic in FY 2020-21.
Improvements Under EPFO 3.0
Acknowledging the persistent criticism regarding delayed settlements, EPFO introduced the ambitious EPFO 3.0 initiative, aiming for greater responsiveness and transparency.
- Part of the improvement includes technology-driven claim management solutions, aimed at accelerating claim processing times.
- As of March 7, 2025, the current financial year (FY2024-25) has already shown enhanced performance, with approximately 70% of the over 71 lakh claims received settled successfully.
Outlook for EPFO Claim Settlements
EPFO continues to face scrutiny regarding claims management efficiency but has actively pursued improvements under its modernization agenda.
- Efforts under EPFO 3.0 indicate a strategic shift toward digitalization, user-centric services, and simplified claims procedures.
- Additionally, EPFO has reaffirmed plans to enable faster settlements and enhanced member convenience in the coming years, responding proactively to longstanding member grievances.
