EPFO Raises Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh

New Delhi, June 25 — In a major move to enhance member services, the Ministry of Labour and Employment has announced that the Employees' Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from the existing ₹1 lakh to ₹5 lakh.

According to the ministry, this decision aims to provide faster financial relief to EPFO members, especially during urgent needs, by ensuring fast-track disbursal within 72 hours. The enhancement is expected to significantly benefit millions of account holders.

Union Labour and Employment Minister Mansukh Mandaviya, in a post on social media platform X, shared that EPFO processed a record 2.32 crore advance claims via auto-settlement in FY 2024–25 — marking an approximate 161% increase over the previous year.

In FY 2023–24, EPFO had processed 89.52 lakh advance claims through auto-settlement. Of all advance claims in 2024–25, nearly 59% were settled via automation.

Continuing the momentum, in the first two and a half months of FY 2025–26 alone, EPFO has already auto-settled 76.52 lakh claims, accounting for nearly 70% of all advance claims settled so far this fiscal year. The ministry highlights this as a clear indicator of EPFO’s strong focus on automation and its commitment to providing faster and more efficient services to members.

EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic to provide urgent financial assistance. Since then, the facility has been extended to cover advances for medical emergencies, education, marriage, and housing, and is processed entirely by the system without any human intervention, ensuring speed, transparency, and efficiency.