In order to ease the claim settlement of EPF accounts of private sector employees associated with the Employees' Provident Fund Organization (EPFO), preparations are underway to make Aadhaar the most authentic and universally accepted document for verification. Aadhaar will be made the main document for verification to find a solution to a large number of pending claims due to discrepancies in the documents related to EPF claims.
The Ministry of Labor has asked the Employees' Provident Fund Organization to accept Aadhaar as the identity document to eliminate the complexities of documents in the process of settling payment claims. The Ministry of Labor hopes that this will not only facilitate the claims of EPF account holders but will also reduce the time taken in the process of settlement of claims.
To reduce the delay in settlement of EPF claims, the Ministry of Labor has also asked to start the process of automatically bringing an application into the fast-track process of the organization as soon as it is pending for more than 30 days.
The government's emphasis on quick settlement of claims
Union Labor and Employment Secretary Sumita Dawra, in a review meeting of the functioning of 21 regional offices of EPFO across the country, emphasized Aadhaar to eliminate delays in settlement of claims due to lack of authentic documents. The Secretary said that the use of Aadhaar as an identity document simplifies the processes of government distribution. It also enhances transparency and efficiency and ensures that beneficiaries receive their rights seamlessly.
According to the Secretary, Aadhaar-based verification will eliminate the need for EPF employees to produce many other documents to prove their identity for settlement of claims. In this regard, while giving UAN numbers to new members joining EPF, it should be linked to Aadhaar.
From improving the EPF grievance redressal mechanism to resolving complaints such as errors in the profile of members, non-compliance of employers, technical glitches, etc., the strategy for the resolution of claims was also discussed in the meeting. The Labour Ministry has meanwhile given EPFO the target of improving the settlement of claims as well as reducing rejection rates.
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