Employees' Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This move will help lakhs of EPFO members receive funds faster for needs like illness, education, or housing, especially in times of urgent need.

"Another People-Centric Move under the Modi Government! EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours," says Union Minister of Labour and Employment Mansukh Mandaviya.

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 advanced 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.

In the financial year 2024-25, EPFO successfully processed a record 2.34 crore advance claims through auto-settlement, a 161% increase over the previous year. Moreover, 59% of all advance claims in 2024-25 were settled through the auto mode.

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.

With the elevated limit of ₹5 lakh, additional advance claims will now qualify for auto-settlement, which will be processed 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," says the ministry.

The move is part of EPFO’s broader push to improve service delivery by using technology.

As of May 2025, the EPFO serves over 7 crore subscribers, who receive an interest rate of 8.25% on their PF savings. The EPFO added 14.58 lakh new members in March 2025, an increase of 1.15% in net payroll additions compared to March 2024, as per the latest payroll data released in May 2025. Of this, 7.54 lakh were new subscribers, a 0.98% YoY increase over March 2024.