Will EPFO claims get faster? Officers raise concerns ahead of major revamp

Compiled By: Anand Prince
Representational image
Representational image

The Union government is preparing to launch E-PRAAPTI by the end of August, a digital platform aimed at helping Indian workers reclaim roughly ₹9,330 crore lying idle in more than 30.91 lakh inoperative accounts. As part of the "EPFO Reform 2.01", the system will use Aadhaar-based verification to link old Member Identification Numbers (MIDs), used since 1952, with modern Universal Account Numbers (UAN). While the move is intended to eliminate "physical ordeals" and reduce reliance on past employers, the EPF Officers' Association has warned that the digital foundations of the scheme are in a state of "current flawed functioning".

Software delays and national importance

The association has sought urgent intervention from the Labour Minister, noting that the new Centralised IT Enabled System (CITES), designed to settle claims within three days, is seeing pendency exceeding 20 days. This delay affects a massive demographic. As the association pointed out, "If we consider EPFO subscribers, pensioners, and their immediate family members, EPFO directly touches the lives of about 25 to 35 crore Indians, i.e. about one-fifth of the population of our country. Therefore, how EPFO functions & delivers its services is of national importance". The CITES project, handed to CDAC in early 2023, was reportedly implemented in a "piecemeal manner" by July 2026 after significant delays.

Staffing crisis and manual burden

Despite the push for automation, the organisation is grappling with a severe manpower crisis, with the last direct recruitment for the Information Services Division (ISD) taking place in 2004. There has been no full-time Chief Technology Officer for three years, and current staffing levels remain frozen at 2008 standards despite the organisation's massive growth. Consequently, metro offices in Mumbai, Delhi, Bengaluru and Gurugram are under "severe strain", handling tech-savvy subscribers with "rudimentary" technology that still requires manual certification.

The association further criticised the appointment of "generalist officers" without prior experience and the Board's hesitancy to exercise its statutory authority to hire the necessary staff. This management gap has led to a surge in grievances, with the association noting that "Lakhs of auto claims were kept pending in the system for more than 20 days", forcing field staff to address a "multitude of grievances" on social media.