EPFO Raises Auto-Settlement Limit for Advance Claims to Rs. 5 Lakhs

• 25 Jun 2025
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The Employees’ Provident Fund Organisation (EPFO) has made an important change to help its members. It has increased the limit for auto-settlement of advance claims from Rs. 1 lakh to Rs. 5 lakhs. This means that more members will now get their money faster, especially in times of emergency.

Auto-Settlement Started During COVID-19

EPFO started the auto-settlement process during the COVID-19 pandemic to give quick financial help to people in need. Since then, the facility has been expanded to include advance claims for things like medical treatment, education, marriage and buying or building a house. These claims are processed automatically by the system without any human help. This makes the process faster and way more transparent.

Record Number of Claims Processed

In the financial year 2024-25, EPFO processed 2.34 crore advance claims through auto-settlement. This was a huge increase i.e., 161% more than the previous year. Out of all advance claims made that year, about 59% were settled using the auto system.

The Auto-Settlement is Still Growing in 2025-26

This year too, the trend is continuing. In just the first two and a half months of the financial year 2025-26, EPFO has already settled 76.52 lakh claims automatically. That’s about 70% of all advance claims made so far this year.

Bigger Limit Means Faster Help

Now that the limit has been raised to Rs. 5 lakhs, more members will be able to use the auto-settlement option. Most of these claims will be processed within three days. This will help people get the money they need quickly when it matters the most.

A Move Towards Better, Tech-Driven Services

This change is part of EPFO’s larger plan to improve its services using technology. The goal is to make processes simple, fast and user friendly. Because of automation and fewer delays, the EPFO members can expect better service and quicker help. These improvements are also helping reduce complaints and making life easier for everyone who depends on EPFO.

Source: PIB