EPFO increases auto-settlement limit for advance claims to Rs 5 lakh to enable quicker access

With an increase in the auto-settlement limit, the members can now automatically withdraw up to Rs 5 lakh instantly. Till now, members had to wait for manual verification for advance withdrawal of amounts above Rs 1 lakh.

In a major relief for lakh of members, the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims (ASAC) from Rs 1 lakh to Rs 5 lakh, facilitating quicker fund access, especially in times of urgent need.

“The limit for auto settlement of the EPFO claims has been increased to Rs 5 lakh. Such claims will get cleared within three days like the process for auto claims at present,” Labour Minister Mansukh Mandaviya told reporters on Tuesday.

This move will enable withdrawal of the amount without needing manual verification. EPFO had first introduced auto-settlement of advance claims during the pandemic to provide quick financial assistance to members.

With an increase in the auto-settlement limit, the members can automatically withdraw up to Rs 5 lakh instantly. Till now, members had to wait for manual verification for advance withdrawal of amounts above Rs 1 lakh. The non-auto settlement requires EPFO subscribers to visit EPFO offices and wait for manual approval, making the entire process time-consuming.

In March 2025, the Central Board of Trustees' Executive Committee (EC) had approved the proposal to enhance the ASAC limit to Rs 5 lakh.

Read More: EPFO auto-settlement limit increase: What does this mean?

In May 2024, the ASAC limit was increased to Rs 1 lakh from Rs 50,000, which resulted in enhanced ease-of-living for EPFO members, said another person. According to details seen by Moneycontrol, auto-settlement claims (in absolute terms) more than doubled from about 9 million in FY24 to around 20 million in FY25.

In the first two-and-a-half months of the ongoing financial year 2025-26, EPFO has auto-settled 76.52 lakh claims, constituting 70 percent of all the advance claims settled so far, said Mandaviya.

"This growth highlights EPFO’s strong focus on automation and delivering faster, more efficient services to its members," said the minister. "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," he added.