EPFO increased auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakhs: Mansukh Mandaviya

ANI June 24, 2025 310 views

EPFO has significantly increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh, ensuring faster access to funds. Union Minister Mansukh Mandaviya highlighted that this reform benefits millions, especially during emergencies. The system processes claims automatically, reducing delays and human intervention. EPFO’s automation efforts have already settled 76.52 lakh claims in just 2.5 months of FY 2025-26.

"These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency." – Mansukh Mandaviya
New Delhi, June 24: Union Labour & Employment Minister Mansukh Mandaviya on Tuesday said that EPFO has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakhs to facilitate faster fund access for EPFO members, especially in times of urgent needs.

Key Points

1

EPFO auto-settlement limit raised 5x to Rs 5 lakh for urgent needs

2

COVID-era reform now covers illness, education, marriage, and housing

3

70% of advance claims auto-settled in FY 2025-26 so far

4

Reforms aim for faster, transparent, and grievance-free services

New Delhi [India], June 24 (ANI): Union Labour & Employment Minister Mansukh Mandaviya on Tuesday said that EPFO has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakhs to facilitate faster fund access for EPFO members, especially in times of urgent needs.

Mandaviya said that this major service enhancement is expected to benefit lakhs of members. 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," he added.

The Union Minister further added that EPFO in recent times has taken a series of reforms designed to make EPFO services faster, transparent and user-friendly for all its stakeholders including simplification of KYC or member details correction, removal of dependency on employer and EPFO for member profile correction.

Union Minister Mansukh Mandaviya said that in FY 2024-25, EPFO processed a record 2.34 crore advance claims through auto-settlement, a 161 per cent increase compared to 89.52 lakh claims in FY 2023-24.

Notably, 59 per cent of all advance claims in 2024-25 were settled through the auto mode as compared to 31 per cent in 2023-24. In just the first 2.5 months of FY 2025-26, EPFO has already auto-settled 76.52 lakh claims, constituting 70 per cent of all advance claims settled to date.

This growth highlights EPFO's strong focus on automation and delivering faster, more efficient services to its members.

"These reforms have not only accelerated the claim settlement process but have also contributed to minimising member grievances, further enhancing ease of living for the member" he added.

Reader Comments

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Rajesh K.
This is a great move by EPFO! 👏 During emergencies, waiting for funds can be stressful. The increased limit will help many middle-class families like mine who might need urgent money for medical treatments or education. Hope the auto-settlement continues to work smoothly without delays.
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Priya M.
While the increased limit is welcome, I hope EPFO also improves their customer service. Last year I faced issues with my claim because of some KYC mismatch. Automation is good, but human support should still be available when systems fail.
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Amit S.
Finally some good news for salaried employees! The ₹5 lakh limit covers most emergency needs. This shows the government is thinking about common people's problems. Next step should be reducing the processing time for pension claims which still takes too long.
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Sunita R.
As someone who used the EPFO advance during COVID, I can say this facility is a lifesaver. The auto-settlement worked quickly when I needed money for my mother's treatment. Raising the limit will help more people in difficult times. Good governance in action!
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Vikram J.
The numbers show impressive growth in auto-settlements, but what about fraud prevention? With higher limits, EPFO should also invest in better verification systems. We don't want to see misuse of these facilities by unscrupulous elements.
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Neha P.
Great initiative! Now if only they could make the EPF withdrawal process after resignation equally smooth. That's when people really need quick access to their hard-earned money. The current process still requires too much paperwork and waiting time.

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EPFO Mansukh Mandaviya auto-settlement PF advance claim EPF reforms Labour Ministry