Good news for EPFO members as govt hikes auto-claim limit to Rs…; check details

Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims (ASAC) from Rs 1 lakh to Rs 5 lakh. The decision will bring relief for lakhs of EPFO members, facilitating quicker fund access, especially in times of urgent need. EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members. Since then, the facility has been extended to cover advanced claims for illness, education, marriage, and housing purposes.

Union Labour and Employment Minister Mansukh Mandaviya has said that this major service enhancement is expected to benefit lakhs of members. "These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency," he added. This move will enable withdrawal of the amount without needing manual verification.

The Union Minister further added that EPFO has taken a series of reforms designed to make EPFO services faster, transparent and user-friendly for all its stakeholders, including simplification of KYC or member details correction, removal of dependency on employer and EPFO for member profile correction. Union Minister Mansukh Mandaviya said that in FY 2024-25, EPFO processed a record 2.34 crore advance claims through auto-settlement, a 161 per cent increase compared to 89.52 lakh claims in FY 2023-24.

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

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Advance claims in 2024-25

Notably, 59 per cent of all advance claims in 2024-25 were settled through the auto mode as compared to 31 per cent in 2023-24. In just the first 2.5 months of FY 2025-26, EPFO has already auto-settled 76.52 lakh claims, constituting 70 per cent of all advance claims settled to date. 

This growth highlights EPFO's strong focus on automation and delivering faster, more efficient services to its members. "These reforms have not only accelerated the claim settlement process but have also contributed to minimising member grievances, further enhancing ease of living for the member," he added.

(With inputs from ANI)