Union Labour and Employment Minister, Mansukh Mandaviya, announced on Tuesday that the EPFO has enhanced auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, ensuring faster access to funds for its members.
The EPFO first introduced auto-settlement of advance claims during the Covid-19 pandemic to provide quick financial assistance to members. Subsequently, the facility has been extended to cover advance claims for illness, education, marriage and housing purposes.
These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency. Within three days, the application for withdrawal of fund will be settled.
“Another People-Centric Move under Modi Government,!” Minister Mandaviya posted on X. “EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours,” he posted on the social-media platform.
The Ministry is also working on a project which will allow EPFO subscribers to withdraw their employees’ provident fund (EPF) directly from their accounts through ATMs or other modes like UPI after linking their bank accounts with EPF.
A certain proportion of the EPF will be frozen and a large chunk will be available for withdrawal through their bank account using various modes such as UPI or ATM debit cards, top Ministry sources stated.
Software challenges
Some software challenges to implementing this project are being resolved, top sources added.
In FY25, the EPFO achieved a significant milestone by successfully processing a record 2.34 crore advance claims through auto-settlement, reflecting a sharp increase of 161 per cent over the previous year, said the Ministry of Labour and Employment in a statement.
Notably, 59 per cent of all advance claims in 2024-25 were settled through the auto mode, the Ministry stated.
In the first two-and-a-half months of FY26, the EPFO has already auto-settled 76.52 lakh claims, constituting around 70 per cent of all advance claims settled so far. This growth highlights EPFO’s strong focus on automation and delivering faster, more efficient services to its members.