EPFO mandates PF, pension claim settlement within 20 days — What to do if it’s delayed?

Employees covered under the EPFO will now benefit from faster settlement of provident fund, pension and insurance claims, as the latest social security schemes mandate a 20-day timeline for processing claims. The new rules also provide for penal interest in cases of delayed claim settlement.

Last month, the Ministry of Labour and Employment notified the Employees’ Provident Funds Scheme, 2026, Employees’ Pension Scheme, 2026 and Employees’ Deposit-Linked Insurance Scheme, 2026 under the Code on Social Security, 2020. They came into force from the date of their publication in the Official Gazette on June 29, 2026.

If your PF or pension claim remains pending beyond the prescribed timeline, you are not without recourse and has the right to take appropriate action. In this article, we discuss how the 20-day settlement rule works, what steps an employee can take if their claim settlement is delayed and what happens next.

20-day deadline for claim settlement

Under the new schemes, EPFO is required to settle claims relating to provident fund withdrawals, pension and deposit-linked insurance within 20 days, provided the claim is complete in all respects.

If the official in charge fails to settle a claim within the prescribed timeline without a sufficient cause, then a penal interest at the rate of 12% per annum may be charged on the benefit amount, with the amount recoverable from the Commissioner’s salary, according to the notified rules.

A senior Labour Ministry official told news agency PTI that a provision for penal interest existed under the earlier schemes as well. However, while the earlier provision linked the penalty to the declared EPF interest rate, the new schemes prescribe a fixed penal interest rate of 12%.

What to do if your PF or pension claim settlement is delayed?

If your provident fund or pension claim remains unsettled even after the 20-day period, you can escalate the matter through the Employees’ Provident Fund Organisation’s (EPFO) grievance redressal mechanism. Here are the ways to escalate a delayed EPF claim:

• Approach the Regional PF Commissioner responsible for grievance redressal in your region.
• Submit a complaint through the EPFiGMS feature under the ‘For Employees’ section. The url for the grievance page: http://epfigms.gov.in/
• You can also appear before the commissioner in the ‘Nidhi Apke Nikat’ program being conducted on 10th of every month.

No change in EPF contribution

The new schemes do not introduce any major changes to the EPF contribution structure. Instead, they focus on structural and administrative reforms, with one of the key objectives being to strengthen digital compliance by both employers and the EPFO. The aim is to streamline processes and enable members to access services online with minimal delays.

Employees and employers will continue to contribute 12% of the employee’s basic wages towards EPFO’s social security schemes. Of the employer’s contribution, 8.33% will continue to be diverted to the Employees’ Pension Scheme, while the Central Government will continue to contribute 1.16% towards the pension scheme.