Major EPFO Announcement: Amounts up to ₹1,000 will now be credited without a claim

The Employees' Provident Fund Organisation (EPFO) has significantly simplified the process of retrieving small amounts lying in old and inactive PF accounts. Now, if an employee has an amount of ₹1,000 or less in their old PF account, there will be no need to file a separate claim or application to receive it. EPFO has introduced an automatic settlement facility for such eligible accounts.

According to a report by ABP Asmita, this new facility will only be available to account holders whose accounts are verified via Aadhaar. EPFO will first complete the necessary verification of the account holder's identity and bank account, after which the process of distributing funds in eligible accounts will be initiated automatically. This initiative is expected to benefit approximately 1,00,000 inactive accounts, with a total settlement of around ₹5 crore.

Many employees' old accounts become inactive due to job changes or lack of contributions over a long period. Often, due to lack of information or the complex claim process, employees are unable to withdraw these small amounts. EPFO has taken this step to resolve this issue and to free employees from the hassle of paperwork. If there is an amount of more than ₹1,000 in the account, it remains secure, and the regular transfer or withdrawal process will continue for it.

As per a report by TV9 Gujarati, according to the EPF Scheme, 1952 rules, an account is considered inactive if no contributions are made to it for a continuous period of three years after the member completes 55 years of age or after retirement, whichever is later. Employees can transfer the amount from their old PF accounts to new accounts by linking them with their current UAN, or withdraw it as per the rules.

On the occasion of its 74th Foundation Day, EPFO has also announced other important facilities. Members will now be able to obtain their PF account details via WhatsApp. Through this verified WhatsApp service, employees can obtain their total PF account balance, details of the last five transactions, and information related to the EPF passbook. Additionally, guidance will be available for processes related to the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). However, facilities such as withdrawing PF, transferring amounts, or submitting claims via WhatsApp are not currently available; the official portal must be used for these purposes.

Union Minister for Labour and Employment Mansukh Mandaviya made these announcements in New Delhi. He stated that EPFO has a fund of approximately ₹32 lakh crore, built from the contributions of more than 80 million members. The organisation serves approximately 80 million active members and 8.5 million pensioners. Due to technical improvements and the CITES 2.01 initiative, the claim process has also become faster.

The Employees' Provident Fund Organisation (EPFO) is an organisation under the Government of India that manages the retirement funds of employees. It works to provide social security to millions of members and pensioners.