EPFO Rule Change: Government changed these rules regarding EPFO, increase in claim limit and benefit of more returns

EPFO New Rule: These decisions of the government will benefit 7 crore EPFO members present across the country. The EPFO has settled 3.83 crore claims worth over Rs 1.57 lakh crore in the current financial year.

EPFO Rule Change: Recently, the Central Board of Trustees (CBT) of EPFO met for the 236th time under the chairmanship of Union Minister Mansukh Mandaviya. During the meeting, the government approved several changes to enhance the benefits of EPFO members and simplify the process.

The redemption policy for Exchange Traded Funds (ETFs) has been approved by the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) for higher income of members. According to reports, the CBT has approved reinvestment of 50 per cent of the proceeds from ETFs in Central Public Sector Enterprises (CPSEs) and Bharat 22 Index.

According to the new policy, it is mandatory to keep the fund for at least five years. Reports further said that the remaining amount will be invested in other financial instruments, such as government securities and corporate bonds. The CBT has approved guidelines for investment in units issued by Infrastructure Investment Trusts (InvITs)/Real Estate Investment Trusts (REITs) sponsored by a public sector undertaking regulated by the Securities and Exchange Board of India (SEBI), the Union Ministry of Labour and Employment said.

Will get the benefit of more interest

The Board also approved an important amendment in the EPF Scheme 1952. As per the existing provisions, interest for claims settled by the 24th of every month is paid only till the end of the previous month. Now the interest will be paid to the member till the date of settlement. According to the ministry, this will bring financial benefits to the members and reduce complaints.

Increase in auto claim limit

Apart from this, the government has also increased the auto claim limit. For home, marriage and education, this limit has now been increased from 50 thousand rupees to 1 lakh. It has been said by the government that 1.15 crore auto claims have been settled in this financial year. As of November 2024, the rejection rate has dropped to 14 per cent.

These decisions of the government will benefit 7 crore EPFO members present across the country. The CBT said the EPFO has fast-tracked the pace of its work in the current financial year by clearing 3.83 crore claims amounting to over Rs 1.57 lakh crore. During the financial year 2023-24, the EPFO had settled 4.45 crore claims amounting to Rs 1.82 lakh crore.