Claim Against Para 57(1) in the Employees' Provident Fund (EPF) refers to the process governed under Para 57(1) of the EPF Scheme, 1952, which deals with the transfer of a member's provident fund balance from one EPF account to another, typically when the member changes jobs. When a PF account shows a claim marked "Against Para 57(1)," it usually indicates that there is a fund transfer request under this provision either in process or requiring attention.
Meaning of Para 57(1) in EPF
Para 57 of the EPF Scheme 1952 specifically covers the transfer of provident fund accumulations from one employer's PF account to another employer's PF account when an employee changes employment. This provision ensures that the PF balance is not lost or disjointed but carried forward seamlessly into the new employer's EPF account. The automatic or manual transfer seeks to maintain continuity and preserve the retirement benefits linked to the employee's entire career.
What Does Claim Against Para 57(1) Indicate?
The statement "Claim Against Para 57(1)" appearing on the EPF passbook or member portal generally means the following:
- A transfer claim has been initiated or is in process under Para 57(1).
- The claim might be pending verification or processing by the EPFO.
- In some cases, the status could signal an issue or delay in transferring funds from the previous employer's account to the current employer's EPF account.
- It confirms that the claim being processed is for transfer of provident fund accumulation, not a withdrawal or settlement claim.
Process of Transfer Under Para 57(1)
- When an employee changes a job, he/she can apply for the transfer of their accumulated PF balance from their previous EPF account to the new EPF account via Form 13.
- The application is submitted to the new employer or directly online through the EPFO member portal.
- EPFO verifies and transfers the balance from the old PF account to the new one.
- During this process, the EPFO system marks the transaction record with "Claim Against Para 57(1)".
- The transferred amount reflects in the new PF account after successful completion of the process.
Common Issues and How to Resolve Them
- Employees sometimes notice their old PF balance missing or not transferred even after months of submission.
- The "Claim Against Para 57(1)" status may not update for a long time due to administrative delays or discrepancies in the EPFO databases.
- If there is failure or mismatch in employer details or member IDs, the transfer may be pending or rejected.
- Employees can follow up by checking the PF passbook, logging into the EPFO portal, raising grievances, or contacting their employer's HR for resolution.
Why is Para 57(1) Important?
- It protects the accumulated provident fund by ensuring uninterrupted growth and security of the employee's retirement corpus.
- Prevents fragmentation of PF balances across multiple employers, making pension and claims simpler.
- Facilitates seamless portability of PF accounts across different employers and states.
In essence, a "Claim Against Para 57(1)" status is a technical indication related to the transfer of EPF amounts between PF accounts when jobs change. It is not an outright claim for withdrawal or settlement but a transfer claim that ensures your previous savings are safely credited to your current EPF account.
This transfer system under Para 57(1) is a vital part of the EPF scheme's design to safeguard employees' retirement funds over their employment tenure.
If the transfer is delayed or funds appear missing despite this claim, users are advised to contact EPFO using grievance mechanisms or verify details through official EPFO platforms to resolve any discrepancies.
This explanation is designed to provide clear understanding of what Claim Against Para 57(1) in EPF means, its procedural context, significance, and common concerns associated with it.