In a major move to improve member services, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This step is expected to provide faster access to funds during times of urgency, especially for those facing sudden financial challenges.
Auto-Claim Process Made More Accessible
Announcing the development on Tuesday, Union Labour and Employment Minister Mansukh Mandaviya confirmed the enhancement. The revised limit will enable lakhs of EPFO members to receive advance withdrawals swiftly, without unnecessary delays or manual intervention.
This expanded limit applies specifically to advance claims processed under the auto-settlement mechanism—an initiative first introduced during the COVID-19 pandemic to offer timely financial relief to account holders.
Faster Fund Access in Times of Crisis
The auto-settlement system was a game-changer during the pandemic, offering quick disbursements to members in need. With the new limit now set at ₹5 lakh, the system is poised to support even more significant financial emergencies, helping workers tap into their own savings with ease and speed.
Minister Mandaviya highlighted that this upgrade is part of the government’s ongoing effort to strengthen digital service delivery in the social security sector and ensure EPFO remains member-centric.
Why This Matters for EPF Account Holders
With this revision, EPFO members facing urgent medical expenses, housing needs, or other unforeseen financial demands can breathe easier knowing that they can access larger sums without the burden of paperwork or long waits.
The move reflects a broader shift toward streamlining provident fund services, making them more agile and responsive to the real-time needs of India’s workforce.