In a big relief to crores of salaried employees, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh, making it easier for members to access their money quickly in times of emergency.
Labour Minister Mansukh Mandaviya announced the move on Tuesday, saying that claims up to Rs 5 lakh will now be settled automatically within three days, just like the current auto-claim process.
This means EPFO members can now withdraw up to Rs 5 lakh from their provident fund account without any manual verification or delay, making the process faster and more hassle-free.
The auto-settlement system was first introduced during the COVID-19 pandemic to help members during difficult times. Earlier, only claims up to Rs 1 lakh were auto-settled. For higher amounts, members had to go through manual checks, visit EPFO offices, and wait for approvals, often leading to delays.
The decision to increase the limit to Rs 5 lakh was approved by the Central Board of Trustees’ Executive Committee in March 2025. Before this, in May 2024, the limit was increased from Rs 50,000 to Rs 1 lakh which helped in faster processing and convenience of claims.
As per data shared by Mandaviya, 76.52 lakh claims have been auto-settled in first two and a half months of FY26 which is 70% of all advance claims so far. In FY24, 9 million claims were settled, in FY25 it was more than doubled to 20 million.
The minister said that this is part of EPFO’s mission to use automation for faster and efficient services and to reduce member complaints. “This will strengthen EPFO’s commitment towards ease of living for its members,” he added.
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Source: Moneycontrol
News Desk
