EPFO raises auto-settlement limit for advance claims to Rs 5,00,000; faster access for members

The Employees' Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This enhanced limit is expected to significantly boost the speed and ease with which members can access funds during emergencies.

The auto-settlement feature, first launched during the COVID-19 pandemic to provide swift financial relief, has since been expanded to cover a wide range of needs such as illness, education, marriage, and housing. The system processes these claims automatically, without any human intervention, ensuring faster turnaround times and greater transparency.

According to the latest data, EPFO processed a record 2.34 crore advance claims via auto-settlement in FY 2024–25, marking a 161% jump from 89.52 lakh claims in FY 2023–24. The share of auto-settled claims rose from 31% to 59% in the same period. Notably, in the first 2.5 months of FY 2025–26 alone, EPFO has already auto-settled 76.52 lakh claims, constituting 70% of all advance claims processed during this time.

This development is part of a broader series of reforms by EPFO to improve efficiency, user experience, and digital access. Other key initiatives include:

• Simplified KYC and member detail corrections, eliminating dependency on employers
• Activation of UAN via UMANG app using Face Authentication Technology (FAT)
• Removal of the requirement to upload cheque images or attested bank passbooks
• Elimination of employer approval for bank account seeding and claim transfers
• Launch of the Centralized Pension Payment System (CPPS) to streamline pension disbursal
• These changes collectively aim to enhance service delivery, reduce grievances, and support the financial wellbeing of EPFO’s large member base.