In a welcome development for EPFO members, the Employees’ Provident Fund Organisation has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. Union Labour and Employment Minister Mansukh Mandaviya stated that this move will enable lakhs of members to access funds more quickly, particularly during emergencies.
Labour Minister Mansukh Mandaviya shared, “The limit for auto settlement of the EPFO claims has been increased to Rs 5 lakh. Such claims will get cleared within three days like the process for auto claims at present.”
EPFO initially introduced auto-settlement of advance claims during the COVID-19 pandemic to ensure quicker financial assistance for its members. The facility was first made available for medical or hospital-related advances and was later extended to claims for marriage, education, and housing. The auto-settlement limit was subsequently raised from ₹50,000 to ₹1 lakh. These claims are settled automatically by the system, eliminating human intervention and ensuring faster processing with greater transparency.
According to the minister, the EPFO processed a record 2.34 crore advance claims through auto-settlement in 2024–25, a 161% surge from 89.52 lakh claims in 2023–24. Significantly, 59% of all advance claims in 2024–25 were settled via the auto mode, up from 31% the previous year. Moreover, in just the first 2.5 months of FY 2025–26, the EPFO has already auto-settled 76.52 lakh claims, accounting for 70% of all advance claims processed so far.