NewKerala.com

Key Points

The EPFO has increased the auto-settlement limit for advance claims to Rs 5 lakh, ensuring faster processing within 72 hours. This move eliminates manual verification, making withdrawals quicker and more efficient. The decision follows earlier increases from Rs 50,000 to Rs 1 lakh earlier this year. Young workers, especially those aged 18-25, form the majority of new EPFO subscribers, reflecting strong job market entry trends.

Key Points: EPFO Raises Auto-Settlement Limit to Rs 5 Lakh for Faster Withdrawals

  • EPFO raises auto-settlement limit from Rs 1 lakh to Rs 5 lakh
  • Claims to be processed within 72 hours without manual checks
  • Move aims to provide quicker financial relief to members
  • Young workers (18-25 age group) dominate new EPFO subscribers
2 min read

EPFO hikes auto-settlement limit for advance claims to Rs 5 lakh in 'people-centric move'

EPFO increases auto-settlement limit for advance claims to Rs 5 lakh, ensuring faster disbursal within 72 hours without manual verification.

"“EPFO enhances Auto-Settlement Limit for Advance Claims from Rs 1 Lakh to Rs 5 lakh, with fast-track disbursal now within 72 hours.” – Mansukh Mandaviya"

New Delhi, June 24

In a big relief for millions of people, the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims (ASAC) from Rs 1 lakh to Rs 5 lakh, Labour Minister Mansukh Mandaviya said on Tuesday.

The move will enable withdrawal of the amount without the requirement of manual verification.

EPFO first introduced auto-settlement of advance claims during the Covid-19 pandemic to provide quick financial assistance to its members.

“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,” Mandaviya said.

In a post on X social media platform, the minister said this is another "people-centric move" under the Prime Minister Narendra Modi government.

“EPFO enhances Auto-Settlement Limit for Advance Claims from Rs 1 Lakh to Rs 5 lakh, with fast-track disbursal now within 72 hours,” Mandaviya noted.

In March this year, the Central Board of Trustees' Executive Committee (EC) had approved the proposal to enhance the ASAC limit to Rs 5 lakh. With an increase in the auto-settlement limit, the members can automatically withdraw up to Rs 5 lakh instantly.

In May 2024, the ASAC limit was increased to Rs 1 lakh from Rs 50,000.

According to the minister, 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 per cent of all the advance claims settled so far.

EPFO added as many as 19.14 lakh net members during April this year. This figure depicts a significant increase of 31.31 per cent over March.

A noticeable aspect of the data is the dominance of the young 18-25 age group who are in their first jobs. The EPFO added 4.89 lakh new subscribers in the 18-25 age group, constituting a significant 57.67 per cent of the total new subscribers added in April this year. New subscribers in the 18-25 age group added in the month show an increase of 10.05 per cent compared to the previous month of March 2025.

Around 2.45 lakhs new female subscribers joined the EPFO in April, which represents a 17.63 per cent increase compared to the previous month, the official statement said.

- IANS

Share this article:

Reader Comments

R
Rahul K.
This is a fantastic move by EPFO! As someone who had to go through lengthy verification processes last year for a medical emergency, I can appreciate how much this will help people in urgent need. Three-day processing is a game-changer 👏
P
Priya M.
Good step but I hope EPFO also improves their website and app experience. Last time I tried to withdraw, the portal kept crashing. Digital infrastructure needs to match these policy changes.
A
Amit S.
₹5 lakh auto-settlement will be a huge relief for middle-class families during emergencies. But I wonder - will this lead to more premature withdrawals affecting retirement savings? Maybe EPFO should run awareness campaigns about long-term financial planning.
N
Neha T.
As a young professional, I'm happy to see EPFO adapting to our needs! The stats show most new subscribers are in 18-25 age group. More flexibility with our PF will help us manage early career financial challenges better. #GoodMove
S
Sanjay V.
While the increased limit is welcome, I hope EPFO maintains strict checks to prevent misuse. There should be proper audits to ensure people aren't withdrawing unnecessarily. Our PF money is our future security after all.
K
Kavita R.
The 17% increase in female subscribers is heartening to see! More working women are getting financial security through EPF. Maybe next they can consider special provisions for women who take career breaks for caregiving responsibilities?

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50