In 2022-23 alone, the EPFO received a staggering 5.21 crore claims for final PF settlement, transfers, and partial withdrawals. Out of these, 1.34 crore claims (around 25.8%) were rejected. The numbers are even more concerning for final settlement claims, where the rejection rate reached a five-year high of 34%.
Here’s a look at the most common reasons for EPFO claim rejections and tips on how to avoid them.
1. Incorrect or Inconsistent Personal Details
Reason: Mismatches in personal details like name, date of birth, or father’s name can lead to rejections. Even small discrepancies between claim forms and EPFO records can cause delays.
How to Avoid:
- Ensure your details match your Aadhaar and PAN records.
- Use a Joint Declaration Form through your employer to correct any errors in EPFO records.
2. Bank Account Mismatch
Reason: EPFO requires bank details to be accurate. Any mismatch in account number, IFSC code, or if the bank account isn’t in your name, can result in rejection.
How to Avoid:
- Verify that your bank details on the EPFO portal are correct and updated.
- Ensure the account is in your name and linked to your UAN.
3. Non-Linked or Unverified Aadhaar and PAN
Reason: EPFO guidelines require Aadhaar and PAN to be linked and verified with your EPF account.
How to Avoid:
- Link your Aadhaar and PAN to your UAN on the EPFO portal.
- Ensure both documents are verified and check the status on the Member e-Sewa portal.
- Contact your employer if there are issues linking or verifying these documents.
4. Incorrect EPS Status
Reason: When filling out Form 11, employees are asked if they are members of the Employee Pension Scheme (EPS), 1995. Answering this incorrectly can create discrepancies that result in rejection.
How to Avoid:
- Check your past employment records to confirm EPS membership.
- If unsure, consult your HR or an EPFO advisor to avoid errors that could delay your claim by months.
5. Incomplete Service Record (Annexure K Missing)
Reason: If you’ve changed jobs, there may be gaps in your service record due to missing Annexure K, a document that records your employment history.
How to Avoid:
- Ensure all previous employers have completed the PF transfer.
- Contact your employer if you encounter a missing service record.
- Keep track of your employment history and ensure it’s consolidated under one UAN.
6. Incomplete KYC Documentation
Reason: EPFO requires KYC (Know Your Customer) verification, including Aadhaar, PAN, and bank details, for claim processing.
How to Avoid:
- Complete KYC verification on the EPFO Member e-Sewa portal.
- Reach out to your employer if there are any issues with KYC verification.
7. Pending Employer Contribution
Reason: If employer contributions are pending, your claim may be rejected.
How to Avoid:
- Regularly check your PF passbook to confirm that your employer’s contributions are up to date.
- Contact HR if there are any missing contributions.
8. Rule-Based Rejections
Reason: Claims that don’t meet specific EPFO rules, such as minimum service duration requirements, are automatically rejected.
How to Avoid:
- Familiarize yourself with EPFO’s rules regarding service duration and withdrawal eligibility, and validate the same before applying for claim.
9. Work Experience Overlap
Reason: Overlapping employment dates with different employers can create inconsistencies in EPFO’s records, leading to claim rejection.
How to Avoid:
- Make sure your exit date from one job and the joining date for the next job are correctly recorded with EPFO.
- Coordinate with previous employers to verify accurate employment dates in EPFO records.
By understanding these common reasons for EPFO claim rejection and taking proactive steps, you can avoid unnecessary delays and access your savings without hassle. A little attention to detail now can save you months of stress!
