EPFO alert! Can transfer claims be rejected for overlapping service period? Check official clarification here | Mint
Source: Live Mint
Employees Provident Fund Organisation (EPFO), the government’s social security schemes manager, has clarified that an overlap in service periods cannot be a ground to reject the transfer claims of employees.
The body highlighted that overlapping service periods may occur due to genuine reasons, and hence, the transfer claims, which allow members to move their provident fund balances from one employer to another when switching jobs, cannot be denied solely for this reason.
In a circular dated May 20, 2025, EPFO stated, “It has been observed that Transfer Claim requests are being rejected due to the issue of Overlap in Service Periods by the Regional Offices. However, overlapping in services can occur due to genuine reasons and therefore the same should not be considered to be a disqualification per-se in effecting transfers.”
What is an overlap service period?
When an employee is shown to be working in two different organisations, it is termed as an overlap service period. This may occur when the last working date from one company and the joining date in another company overlap for several reasons or certain errors.
Processing of overlapping service period transfer claims
Due to the latest clarification, the EPFO has provided the modalities of the Employee Pension Scheme (EPS), a monthly pension to employees for members having multiple account numbers.
Consequently, the transfer claim requests will now be processed, even if there are overlapping services, without the need to return or reject them. Claims will only be processed after obtaining the necessary clarification, and solely in instances where there is a genuine need to clarify the overlap of services.
“Only in cases where a genuine need is felt to clarify the overlapping of service, would the claims be processed after obtaining the requisite clarification,” the circular stated.
The recent directive is one of the key measures introduced by the EPFO with the aim to simply the transfer process. Some of the other initiatives undertaken are the digitisation of withdrawal and settlement of claims. While filing claims, employees will not be required to submit cheque leaves and bank-attested updated passbooks.
