The Employees' Provident Fund or EPF is a silent accumulator for salaried employees, with both the employer and employee contributing a part of the salary to the fund.
The rate of rejection of EPF, however, continues to remain high at around 25% for partial withdrawal and 30% for those who go for full withdrawal, said Ketan Das, business head - provident fund at FinRight, while speaking to NDTV Profit.
"1.6 crore claims rejected as per the last financial year's report," he said.
Rohit Shah, founder and CEO, GYR Financial Planners, remarked, "I think EPFO continues to be one of the most unfriendly manager of our money."
As per Shah, the key reasons as to why your claims may be rejected has to do with Employee's Provident Fund Organisation's shortcomings like absence of system upgradations, KYC not being in sync, the names being mismatched, absence of a grievance redressal ecosystem, and so on.
Das highlighted other factors that might contribute to claims being rejected and said, "There could be multiple underlying issues due to which your claim might get rejected. Some of it can be categorised as pension related issues. Others could be PF contributions that your employer deposits. There may be issues with that. Other than that, there are typical issues such as KYC issues where your name, date of birth, gender sort of information doesn't match with what's there on your Aadhaar."
In the case of partial withdrawal of funds, people might not know how much amount they are eligible to receive, he added. "Eligibility is something a lot of people get mistaken about", according to Ketan.
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