EPFO New Rule: The Employees’ Provident Fund Organisation (EPFO) has introduced a new online facility for its 7.6 crore members, allowing them to update personal details like name and date of birth without employer or EPFO approval. Members with e-KYC-linked EPF accounts (Aadhaar-seeded) can now file EPF transfer claims using an Aadhaar OTP, eliminating the need for employer involvement. This makes the process faster and more efficient for members.
Union Labour and Employment Minister, Mansukh Mandaviya, introduced these services, emphasizing how they will help reduce grievances from members. He pointed out that around 27% of member complaints are related to issues with personal details and KYC records. The new online facility is expected to ease these problems, providing a simpler, faster solution for members.
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The new service will also be beneficial for large employers who deal with a high number of requests related to personal details. By streamlining the process, the system reduces the workload of employers, allowing them to handle fewer requests, making their job easier and more efficient.
EPFO has also made it easier for members to correct common errors in their personal information through the portal. Members with a Universal Account Number (UAN) issued after October 1, 2017, can now make these corrections without needing approval from either their employer or EPFO.
If the UAN was issued before this date, employers can make corrections directly, reducing the number of steps involved. For UANs that are not linked to Aadhaar, members still need to submit their corrections to the employer, who will then forward them to the EPFO for approval.
The changes are expected to provide relief to many employees. According to ET Now, around 45% of cases will benefit immediately, thanks to the new Aadhaar OTP verification system. For the remaining 50% of cases, employers can still handle the corrections.
The new system will also help in clearing the nearly 3.9 lakh pending requests currently stuck with employers, as members can now delete old requests and self-approve them, speeding up the process.
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The new process for EPF transfer claims is expected to improve overall efficiency. Previously, it took employers about 28 days to process transfer requests. With the simplified process, members can now handle their claims more quickly, reducing delays and enhancing the overall experience.
The introduction of the online process for filing EPF transfer claims is expected to cut down on the average time taken for employers to handle these requests. This change is particularly important, as transfer-related issues currently account for 17% of total grievances. By allowing members to file claims directly with EPFO using their Aadhaar OTP, the new system will not only reduce complaints but also improve the ease of business for large employers.
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