EPFO Raises Auto-Settlement Cap for EPF Advances to ₹5 Lakhs, Says Mansukh Mandaviya

The Employees’ Provident Fund Organisation (EPFO) has raised the limit for auto-settlement of advance claims from ₹1 lakh to ₹5 lakh, as per PTI reports. This update was announced by Union Labour & Employment Minister Mansukh Mandaviya. The change allows members to access larger sums from their PF accounts in time of emergency.

EPF Withdrawals are Faster for Larger Amounts

Claims up to ₹5 lakh will now be processed automatically, similar to smaller claims earlier. The automation system does not involve any human intervention, which is intended to reduce the time taken for disbursals. This is expected to speed up fund access in urgent situations like medical emergencies or housing needs.

The auto-settlement process was first introduced during the COVID-19 pandemic. Initially meant to provide quick financial support, it has since been extended to include claims for illness, education, marriage, and housing. The limit was raised to ₹1 lakh in May 2024 and has now been revised to ₹5 lakh following approval by the Central Board of Trustees’ Executive Committee in March 2025.

EPFO Claim Volumes Show Sharp Increase

EPFO settled 2.34 crore advance claims automatically in FY 2024-25, compared to 89.52 lakh in the previous financial year. This represents a 161% increase. Auto-settled claims accounted for 59% of total advance claims in FY25, up from 31% in FY24. In the first 2.5 months of FY 2025-26 alone, 76.52 lakh claims were processed through the auto route.

In addition to the higher withdrawal cap, EPFO has made several service-related changes recently. These include simplified KYC procedures, easier correction of member details, and reduced reliance on employers for profile updates. All these updates will help reduce delays and improve access to EPFO services.

Read more: EPFO 3.0: How Much Time Will EPF Withdrawal Claim Take to Be Settled?

Conclusion

With the revised limit in place, members can now withdraw up to ₹5 lakh automatically from their PF accounts, cutting down on processing time and manual formalities. This growth underscores EPFO's commitment to automation, leading to faster and more efficient services for its members.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.