EPFO increases auto-settlement limit to Rs 5 lakh
The Employee provident fund officer (EPFO) has increased the auto-settlement limit for advance claims from existing Rs1 lakh to Rs 5 lakh, enabling members to receive higher funds in time of need.
EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members. Since then the facility has been extended to cover advance claims for illness, education, marriage, and housing purposes. These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.
This step is part of EPFO's broader push to improve service delivery by using technology, said a labour ministry statement.
With the elevated limit of Rs 5 lakhs, additional advance claims will now qualify for auto-settlement, leading to their processing within three days of submission. This enhanced limit and faster access to funds will help members get timely financial support when they need it the most.
In 2024–25, EPFO achieved a significant milestone by successfully processing a record 2.34 crore advance claims through auto-settlement, reflecting a sharp increase of 161% over the previous year. Around 59% of all advance claims in 2024–25 were settled through the auto mode.
Continuing this upward trajectory, in the first two and a half months of FY 2025–26, EPFO has already auto-settled 76.52 lakh claims, constituting around 70% of all advance claims settled so far. This growth highlights EPFO's strong focus on automation and delivering faster, more efficient services to its members.
The labour ministry in a statement said that the move reaffirms the government's commitment to enhance ease of access for EPFO members. It said that the EPFO will continue to leverage technology and process simplification to ensure a seamless and efficient service experience. These reforms have not only accelerated the claim settlement process but have also contributed to minimising member grievances, further enhancing ease of living for the member.
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