EPFO pension rules: Settlement in 20 days, but here’s why many EPS claims still get rejected

For millions of salaried employees in India, retirement savings are built through the provident fund system managed by the Employees’ Provident Fund Organisation (EPFO). Every month, both the employee and employer contribute 12% of basic salary to the provident fund.

Out of the employer’s contribution, 8.33% goes into the pension pool under the Employees’ Pension Scheme 1995 (EPS-95), while the remaining portion goes into the EPF retirement corpus. Over time, the EPF corpus grows with interest and can be withdrawn at retirement, while the EPS portion provides monthly pension benefits after retirement, subject to eligibility conditions such as minimum service of 10 years.

But despite this structured system, many pension applicants face delays or even rejection of claims. The issue was recently raised in Parliament by a parliamentarian Asaduddin Owaisi, prompting a detailed response from the Ministry of Labour and Employment. The reply sheds light on why pension claims get rejected, how long settlement should take, and what EPFO is doing to reduce problems for pensioners.

Why EPFO pension claims get rejected

According to the written reply by Minister of State for Labour and Employment Shobha Karandlaje, most pension claim rejections happen due to basic documentation or data issues rather than policy changes.

Here are the key reasons:

1. Incomplete or incorrect claim forms

One of the most common reasons is incorrect or incomplete claim applications. If details such as service records, bank details, or personal information are missing or wrongly filled, the EPFO may reject the claim until corrections are made.

Even small errors — like wrong account numbers or mismatched personal details — can lead to rejection.

2. Mismatch in member data

Another major issue is data mismatch between EPFO records and submitted documents. This includes discrepancies in date of birth, date of exit from employment, service history, Aadhaar details and bank account information. When such mismatches occur, the system cannot process the pension claim automatically.

3. Missing documents in death cases

In cases where family members claim pension after the death of an EPF subscriber, documentation requirements become more extensive.

Claims may be rejected if the applicant fails to provide death certificate, legal heir or succession documents, family details and nomination records. Without these documents, EPFO cannot verify eligibility for family pension.

4. Contribution discrepancies

Sometimes pension claims are rejected because of irregularities in employer contributions.

For example: Missing EPS contributions, incorrect wage reporting, gaps in contribution history.

These discrepancies require verification before pension can be approved.

Good news: Pension claim rejection rate declining

The government told Parliament that the rejection ratio of pension claims under EPS-95 has been declining steadily over the past five years.

One major reason is EPFO’s push for online e-nomination and digital family records, which ensures that essential beneficiary details are already available in the system.

This reduces the chances of documentation gaps when pension claims are filed.

How long EPFO should take to settle pension claims

Under the rules of EPS-95, a complete pension claim should be settled within 20 days. However, delays typically occur when documents are missing, data verification is required, and corrections are needed in records.

In such cases, additional time is required for applicants to submit the required documents or rectify discrepancies.

Website issues and steps taken by EPFO

Many EPFO members have also complained about frequent downtime and slow performance of the EPFO portal.

The government said a technical review was conducted and several upgrades have been implemented, including installation of new servers and storage systems; increased system capacity to handle higher traffic; deployment of new routers, switches and higher bandwidth, installation of advanced security tools and firewalls and creation of a dedicated Security Operations Centre.

These steps are aimed at improving performance of the EPFO unified portal and making online services smoother for members, employers and pensioners.

Grievances: Millions of complaints handled

The EPFO also handles a large number of grievances from members every year through official portals such as CPGRAMS and EPFiGMS.

In 2025 alone, 2.33 lakh grievances were received on CPGRAMS, of which about 2.28 lakh were resolved and 17.54 lakh grievances were received on EPFiGMS, and around 17.20 lakh were resolved.

Apart from these portals, member queries are also handled through social media platforms and EPFO call centres.

Challenges faced by elderly pensioners

Another major concern highlighted in Parliament was the difficulty faced by elderly pensioners while submitting digital life certificates, especially due to biometric authentication issues.

Some of the problems reported include fingerprint authentication failure in old age, iris authentication issues after cataract surgery, and physical inability to visit banks or EPFO offices.

To address these challenges, EPFO has introduced several measures.

Doorstep life certificate service

EPFO has signed an agreement with the India Post Payments Bank to provide free doorstep Digital Life Certificate services for EPS-95 pensioners who cannot visit banks or offices.

Face authentication technology

The EPFO is also promoting Aadhaar-based face authentication for submitting life certificates.

Interestingly, nearly 49% of digital life certificates submitted in 2025 were generated using face authentication, showing rapid adoption of the technology.

Outreach programmes such as the Nidhi Aapke Nikat initiative, conducted across districts on the 27th of every month, are also helping pensioners resolve issues related to EPFO services.