EPFO Enhances Auto-Settlement Limit for Advance Claims to Rs.5 Lakhs, Ensuring Faster Access to Funds for Members

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Ministry of Labour & Employment EPFO Enhances Auto-Settlement Limit for Advance Claims to ₹5 Lakhs, Ensuring Faster Access to Funds for Members Posted On: 24 JUN 2025 6:22PM by PIB Delhi EPFO has taken a significant step forward in its efforts to enhance member services by increasing the auto-settlement limit for advance claims from existing ₹1 lakh to ₹5 lakhs. This move will help lakhs of EPFO members receive funds faster, especially in times of urgent need. EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic to provide quick financial assistance to members. Since then 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. Another People-Centric Move under Modi Government! EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours. pic.twitter.com/MbBQGhW H5p — Dr Mansukh Mandaviya (@mansukhmandviya) June 24, 2025 In the financial year 2024–25, EPFO achieved a significant milestone by successfully processing a record 2.34 crore advance claims through auto-settlement, reflecting a sharp increase of 161% over the previous year. Notably, 59% of all advance claims in 2024–25 were settled through the auto mode. Continuing this upward trajectory, in the first two and a half months of FY 2025–26, EPFO has already auto-settled 76.52 lakh claims, constituting around 70% 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. With the elevated limit of ₹5 lakhs, additional advance claims will now qualify for auto-settlement, leading to their processing within three days of submission. This enhanced limit and faster access to funds will help members get timely financial support when they need it the most. 11/07/2025, 10:37 Press Release:Press Information Bureau https://www.pib.gov.in/PressReleasePage.aspx?PRID=2139291 1/2 This step is part of EPFO’s broader push to improve service delivery by using technology. Reaffirming the government’s commitment to enhance ease of access for EPFO members, it is underscored that the organization will continue to leverage technology and process simplification to ensure a seamless and efficient service experience. These reforms have not only accelerated the claim settlement process but have also contributed to minimizing member grievances, further enhancing ease of living for the member. ***** Manish Gautam/Divyanshu Kumar/Anjelina Alexander (Release ID: 2139291) Read this release in: Gujarati , Urdu , Hindi , Telugu 11/07/2025, 10:37 Press Release:Press Information Bureau https://www.pib.gov.in/PressReleasePage.aspx?PRID=2139291 2/2