Has EPFO Increased the Auto-Settlement Limit for Advance Claims to Rs 5 Lakh?
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Synopsis
In a significant move for financial relief, the EPFO has raised the auto-settlement limit for advance claims to Rs 5 lakh, expediting disbursal and simplifying access to funds. This change is part of ongoing efforts by the government to support citizens effectively.
Key Takeaways
- EPFO increases auto-settlement limit to Rs 5 lakh.
- Claims processed within 72 hours.
- Significant increase in new member registrations.
- Focus on young workforce joining EPFO.
- Ongoing support for citizens post-pandemic.
New Delhi, June 24 (NationPress) In a significant relief for millions of citizens, the Employees’ Provident Fund Organisation (EPFO) has elevated the auto-settlement cap for advance claims (ASAC) from Rs 1 lakh to Rs 5 lakh, announced Labour Minister Mansukh Mandaviya on Tuesday.
This adjustment allows members to withdraw funds without any manual verification.
The EPFO initially implemented auto-settlement of advance claims during the Covid-19 pandemic to offer swift financial support to its members.
“The limit for auto-settlement of EPFO claims has now been raised to Rs 5 lakh. Such claims will be processed within three days, similar to the current auto claims method,” Mandaviya stated.
In a post on the X social media platform, the minister referred to this as another “people-centric initiative” by the government of Prime Minister Narendra Modi.
“EPFO has enhanced the Auto-Settlement Limit for Advance Claims from Rs 1 Lakh to Rs 5 lakh, ensuring fast-track disbursal within 72 hours,” Mandaviya highlighted.
In March of this year, the Executive Committee of the Central Board of Trustees had approved the proposal to increase the ASAC limit to Rs 5 lakh. This increase allows members to withdraw up to Rs 5 lakh automatically.
Previously, in May 2024, the ASAC limit had been raised from Rs 50,000 to Rs 1 lakh.
According to the minister, during the initial two-and-a-half months of the financial year 2025-26, the EPFO has auto-settled 76.52 lakh claims, which accounts for 70 percent of all advance claims settled thus far.
The EPFO welcomed 19.14 lakh net new members in April this year, marking a remarkable increase of 31.31 percent over March.
A notable part of the statistics is the prevalence of the 18-25 age group, many of whom are entering their first jobs. The EPFO added 4.89 lakh new subscribers from this demographic, making up 57.67 percent of all new subscribers in April.
Additionally, around 2.45 lakh new female subscribers joined the EPFO in April, representing a 17.63 percent increase compared to the preceding month, according to the official announcement.
Point of View
The EPFO's decision to raise the auto-settlement limit is a commendable step towards enhancing financial accessibility for millions of members. This initiative reflects a commitment to supporting citizens in times of need, particularly in a post-pandemic landscape. The increase in membership and rapid claims processing further demonstrates the organization's responsiveness to the evolving needs of the workforce.
NationPress
24/06/2025
Frequently Asked Questions
What is the new auto-settlement limit for EPFO advance claims?
The new auto-settlement limit for EPFO advance claims has been increased to Rs 5 lakh.
How quickly can claims be processed under the new limit?
Claims can be processed within 72 hours under the new auto-settlement limit.
What was the previous auto-settlement limit?
The previous auto-settlement limit was Rs 1 lakh.
Why was the auto-settlement feature introduced?
The auto-settlement feature was introduced during the Covid-19 pandemic to provide immediate financial assistance to members.
What percentage of claims have been auto-settled this financial year?
This financial year, 70% of all advance claims have been auto-settled.
