EPFO Makes Big Move: Auto-Settlement Limit For Claims Now Rs 5 Lakh

In a significant step aimed at improving service delivery and ensuring quicker access to funds, the Employees’ Provident Fund Organisation (EPFO) has raised the limit for auto-settlement of advance claims from Rs 1 lakh to Rs 5 lakh.

This major upgrade is expected to benefit lakhs of EPFO members, particularly during times of urgent financial need, said Union Labour & Employment Minister Mansukh Mandaviya on Tuesday.

EPFO has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh to facilitate faster fund access for EPFO members, especially in times of urgent need. This major service enhancement is expected to benefit lakhs of members. EPFO had first introduced… pic.twitter.com/6SAbRiyoWO

— ANI (@ANI) June 24, 2025

The auto-settlement system, which was initially launched in April 2020 to facilitate illness-related claims, has progressively expanded its coverage. By May 2024, the limit was increased to Rs 1 lakh, extending eligibility to claims related to marriage, education, and housing. "These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency," the minister added.

How Will This Impact EPFO Members?

The latest enhancement to Rs 5 lakh now allows members to access larger sums without awaiting manual intervention, a move especially helpful for situations like medical emergencies, home renovations, or educational expenses.

"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", the minister explained.

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How Does EPFO Process Claims?

EPFO’s IT infrastructure plays a critical role in ensuring the speedy processing of claims. The system automatically verifies whether a member’s KYC is complete, bank details are valid, and all eligibility criteria are satisfied. Once these checks are cleared, claims are settled automatically within three to four days. Ineligible claims are directed to manual processing for further scrutiny.

In 2024-25 fiscal year, EPFO processed a record 2.34 crore advance claims through its automated system—substantially up from 89.5 lakh claims in FY24, the minister infromed. Furthermore, he added that in the first 2.5 months of the current 2025-26 fiscal year, the EPFO has already settled 76.52 lakh claims via its automated platform. 

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