EPFO to Consider Third-Party Support for Grievance Redressal

The Employees’ Provident Fund Organisation (EPFO) is considering empanelling third-party entities to assist members with queries and grievance resolution, according to news reports. 

The proposal is expected to be taken up at the next meeting of the Central Board of Trustees (CBT) scheduled for February. The CBT is the apex decision-making body of the organisation. 

Framework Similar to GST Facilitators 

The proposed arrangement would follow a structure similar to the Goods and Services Tax (GST) Suvidha Provider model.  

Under that system, government-authorised private companies assist users with compliance-related tasks by connecting their platforms to official networks. A comparable framework is now being explored for EPFO-related services. 

Role and Scope of Intermediaries 

The intermediaries are expected to help members address routine EPF issues and grievances. While the final name is yet to be decided, they may be referred to as “EPFO Suvidha Providers”.  

These entities would be required to obtain licences and undergo training prescribed by the government before commencing operations. 

Service Charges and Oversight 

According to news reports, the facilitators would levy a nominal, fixed service charge, likely between ₹20 and ₹25 per transaction. The government would approve and regulate these entities to ensure standard processes.  

Large Member Base and Operational Load 

This comes as EPFO continues to manage a large subscriber base. As per labour ministry data, the organisation currently has around 85 million active contributing members. Handling queries and grievances at this scale has been an ongoing administrative challenge. 

Simplification of Withdrawal Rules 

Separately, Union labour minister Mansukh Mandaviya recently said the CBT has recommended simplifying provisions under the EPF scheme for partial withdrawals. 

Members can now withdraw up to 75% of their balance under a simplified framework, with the remaining 25% retained to support long-term retirement savings. 

UPI-Based Withdrawals from March 

EPFO is also preparing to roll out UPI-enabled withdrawals from March. Once implemented, members will be able to transfer funds directly from their provident fund accounts to their bank accounts through the EPFO portal and mobile application, with transfers expected to be credited instantly after UPI linkage. 

Read More: EPFO to Use AI and Blockchain to Fix Past Service Record Issues for Members! 

Conclusion 

If approved, the empanelment of third-party agents would add another service channel alongside recent digital and procedural changes aimed at easing access for EPFO members. 

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