What would be the helm of Digital India ? Provident fund department will now settle your claim within 3 hours if claimant having the valid eAadhaar. This is one of the best provision by the government and PF department as earlier the same mannul procedure usually takes more than a month. For pension fixation there are lot of paper work and helpless senior citizen run from pillar to pillar for their own pension.
Now EPFO has an ambitious plan to settle the claims within few hours after filing of application. For instance, it has plans to settle the EPF withdrawal claim within three hours of filing of online application.
EPFO Aadhaar enabled PF claim Settlement Process
EPFO has made it mandatory for all subscribers as well as pensioners to submit their Aadhaar number. This will help linking EPF account, pension account, bank account and Aadhaar number which would eventually facilitate providing a host of online facilities to subscribers like online withdrawal and fixation of pension.
Tthe Deadline for submitting Aadhaar for its subscribers and pensioners till 31 March 2017.
What is Provident Fund ?
Provident Fund is the financial instrument of investment by individual where as per EPFO norms, 12% of the salary should go to the PF fund, which is matched equally by the employer. 8.3% of this goes to the Pension Fund. Provident Fund is the one of the most crucial post-retirement plans for any salaried employee.
It is generally not advisable for salaried employees to withdraw their PF funds in between, as the funds are meant for retirement purposes. There is no tax on the PF funds if the employee doesn’t withdraw the fund for 5 continuous years.
The interest rate provided on PF funds is announced every year by EPFO.