The Employee Provident Fund Organisation or the EPFO, has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakhs, according to a release from the Ministry of Labour & Employment.
With the new Rs 5 lakh limit, more advance claims will now qualify for auto-settlement, aiming for processing within just three days or 72 hours of submission.
This move is designed to provide members with faster access to their funds within shorter time spans and lower human intervention. This is particularly beneficial during urgent financial situations.
Another People-Centric Move under Modi Government!
EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours. pic.twitter.com/MbBQGhWH5p
— Dr Mansukh Mandaviya (@mansukhmandviya) June 24, 2025
Initially introduced during the Covid-19 pandemic for rapid financial assistance, the auto-settlement facility has been expanded to cover advances for illness, education, marriage, and housing. These claims are processed automatically, ensuring quick turnarounds and transparency without human intervention.
This initiative is part of EPFO’s commitment to leveraging technology for improved service and delivery. The organisation processed a record 2.34 crore advance claims through auto-settlement in financial year 2024 to 2025. This marks a substantial 161% increase over the previous year.
This means 59% of all advance claims during the period were settled automatically. The trend continues in the first two and a half months of financial year 2025-26. According to the release, 76.52 lakh claims have already been auto-settled, representing about 70% of all advance claims.
This faster access to funds ensures members receive timely financial support when they need it most, minimising grievances and enhancing access to their funds for EPFO members.
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