PF Full & Final Settlement: Part Payment Enabled During Issue Resolution

EPFO’s circular dated 19 September 2025 allows immediate part payment of Provident Fund settlement where issues exist—remaining balance to be paid after procedural gaps are closed.

Why This Matters

Historically, even minor shortcomings led to outright rejections of full & final settlement claims—worsening member hardship. The new clarification aims to mitigate such hardship by ensuring cash flow via part payments while issues are fixed.

What the Circular Clarifies

• Do not reject such claims: As per Para 10.11 of the Manual of Accounting Procedure (Part-IIA), these claims must not be rejected.
• Process for part payment: Release the available PF balance immediately.
• Pay balance later: On receipt of pending employer contributions or transfer-in amounts, release the remaining settlement without delay.

Member Checklist

• Ensure UAN-linked accounts are consolidated; initiate transfer-in for earlier employments.
• Ask your employer to clear pending contributions (if any) promptly.
• Track claim status and confirm part payment credit while issues are resolved.

Karma Global Views

Karma Global’s commitment to PF administration for lakhs of employees across its client base stems from three core goals:

1. Prudent administration of members’ wealth.
2. Assuring a regular pension income post-retirement.
3. Family security through disciplined, long-term savings.

Need Help with PF Settlements & Transfers?

Karma Global supports employers and employees with PF claims, transfers, reconciliations, and documentation—ensuring faster settlements under the latest EPFO guidance.