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Auto-settlement of EPF claims up to Rs 5 lakh now

Auto-settlement of EPF claims up to Rs 5 lakh now

Time of India25-06-2025
NEW DELHI: In a move to enable subscribers to tap into their funds to meet requirements, Employees' Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh.
This en'hancement is likely to benefit lakhs of subscribers, especially during urgent needs such as illness, education, marriage or housing. Auto-settlement allows claims to be processed entirely by an automated system without human intervention, ensuring quick disbursal & greater transparency.
First introduced during the Covid-19 pandemic to provide financial relief, the advance claims EPFO facility has since been expanded and now covers a broad range of advance claims.
Announcing the decision, Union labour and employment minister
Mansukh Mandaviya
said, "The enhancement of the auto-settlement limit is a testament to our govt's commitment to ensuring dignity and ease of living for India's workforce. EPFO members should be able to access their funds promptly, especially in times of need. This step will bring efficiency, speed and trust to the system."
The move is part of a broader series of reforms by EPFO to modernise and simplify operations.
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Key initiatives include simplification of KYC correction processes, removal of employer dependency for profile updates and activation of UAN using face authentication technology through the Umang app.
EPFO has also eliminated the need for uploading cheque leaf images or passbook copies and removed employer approval requirements for seeding bank account details and transferring claims. In addition, a Centralised Pension Payment System has been launched to streamline pension disbursement.
The impact of these reforms is visible in recent figures. In FY 2024-25, EPFO processed a record 2.34 crore advance claims via the auto mode - a 161% increase from 89.52 lakh in FY 2023-24. Auto-settlement accounted for 59% of all such claims last year, up from 31% the previous year. In the first two and a half months of FY 2025-26, EPFO has already auto-settled 76.52 lakh claims, representing 70% of all advance claims so far.
Officials said the growth reflected EPFO's commitment to automation and member-centric services. With the increased auto-settlement limit now in place, members will have faster and more reliable access to their funds, further reducing grievances and enhancing trust in the system.
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