Big EPFO News! EPFO raises Auto-Settlement Limit for Advance Claims from Rs. 1 Lakh to Rs. 5 Lakhs, with fast-track disbursal within 72 hours
Employees Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. The enhanced limit will ensure quick access to funds for lakhs of EPFO members, especially during emergency situations.
EPFO Auto-Settlement Advance Claims
The auto-settlement facility was first introduced during the COVID-19 pandemic. The EPSO system automatically processes these claims without any human involvement, ensuring quick turnaround and transparency. EPFO advance claims facility has been extended to cover advance claims for illness, education, marriage, and housing purposes.
In FY 2024–25, EPFO processed a record number of 2.34 crore advance claims through the auto-settlement process, which is a 161% jump compared to the previous year. Notably, 59% of all advance claims in 2024–25 were settled through the auto mode, as reported by the Press Information Bureau.
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EPFO has already auto-settled 76.52 lakh claims, constituting around 70% of all advance claims settled so far within 2 and half months of FY 2025–26. This growth highlights EPFO’s strong focus on automation and delivering faster, more efficient services to its members.
The new ₹5 lakh advance claim limit will help participating members receive timely financial assistance with minimal paperwork and delays. EPFO will continue to leverage technology and process simplification to ensure a seamless and efficient service experience.
EPFO is also doing necessary reforms that have not only accelerated the claim settlement process but have also contributed to minimizing member grievances, further enhancing ease of living for the members.
