EPFO Boosts Auto-Settlement Claim Limit to ₹5 Lakh
The Employees Provident Fund Organisation (EPFO) has significantly increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This decision, aimed at improving the quality of life for its 7.5 crore members, was approved by Sumita Dawra, Secretary of the Ministry of Labour and Employment, during a recent meeting of the Central Board of Trustees in Srinagar. The new limit will allow members to withdraw larger sums through an efficient auto-settlement process.
Enhanced Claim Processing Efficiency
The EPFO’s auto-settlement process has experienced remarkable growth, processing a record 2.16 crore claims as of March 6, 2025, compared to just 89.52 lakh claims the previous year. This surge indicates a significant improvement in the system’s efficiency, with 95% of claims now being settled automatically within three days. Ramesh Krishnamurthi, the Central Provident Fund Commissioner, emphasized the importance of this streamlined process, stating that it has greatly simplified claim settlements and reduced the need for human intervention. The EPFO is committed to further enhancing this efficiency, making it easier for members to access their provident fund (PF) savings.
In addition to the increased claim limit, the EPFO has expanded the categories eligible for auto-settlement. Members can now withdraw funds for various purposes, including medical emergencies, education, marriage, and housing. This expansion has also contributed to a decrease in the rejection rate of claims, which has fallen from 50% last year to 30% this year.
Upcoming UPI Withdrawals for PF Members
In a groundbreaking development, the EPFO is set to introduce the option for Provident Fund withdrawals through the Unified Payments Interface (UPI) and ATMs. This initiative has received approval from the Ministry of Labour and Employment, and members can expect to access their funds via these platforms by the end of May or June 2025. Dawra highlighted the significance of this new system, stating that it will provide members with instant access to their PF savings, thereby enhancing convenience. This move is expected to set a precedent for other government savings schemes, including the General Provident Fund (GPF) for government employees and the Public Provident Fund (PPF) for bank customers.
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