EPFO Raises Auto-Settlement Limit to ₹5 Lakh from Provident Fund Accounts

Union Labour Minister Mansukh Mandaviya announced the enhancement of the auto-settlement limit for advance withdrawals from ₹1 lakh to ₹5 lakh.

The revision means that members of the Employees’ Provident Fund Organisation (EPFO) can now have their claims up to ₹5 lakh processed automatically within just three days, without any manual intervention. Until now, the auto-settlement facility was limited to claims not exceeding ₹1 lakh.

The EPFO, which caters to over 7 crore members across India, had introduced the auto-settlement mechanism during the COVID-19 pandemic to offer quick financial relief to subscribers. Since its inception, the facility has been extended to advance claims for various purposes such as medical treatment, education, marriage, and housing.

These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.

Highlighting the growing reliance on the auto-settlement system, Mandaviya revealed that in FY25, the EPFO processed a record 2.34 crore advance claims through the automated mechanism—marking a staggering 161% increase compared to 89.52 lakh claims in FY24.

He further added that the share of advance claims settled through auto-mode jumped from 31% in 2023–24 to 59% in 2024–25. The momentum continues in FY26, with 76.52 lakh claims already auto-settled in the first two-and-a-half months alone, accounting for 70% of total claims so far this fiscal.

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