In a major relief for salaried employees, the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance withdrawals from ₹1 lakh to ₹5 lakh, enabling faster access to funds during emergencies.
Announcing the move, Union Labour Minister Mansukh Mandaviya said the enhanced limit will allow EPFO members to receive advance claims of up to ₹5 lakh within three working days, without manual intervention. The auto-settlement system, introduced during the COVID-19 pandemic, processes claims digitally for purposes such as illness, education, marriage, and housing.
The minister highlighted that this upgrade is part of EPFO’s broader push toward automation and transparency. In FY 2024–25, EPFO processed a record 2.34 crore advance claims via auto-settlement—up 161% from the previous year. Already in the first 2.5 months of FY 2025–26, 76.52 lakh claims have been settled automatically, accounting for 70% of all advance claims so far.
The move is expected to benefit millions of EPFO’s 7 crore-plus members, especially those facing urgent financial needs. The Central Board of Trustees had approved the change earlier this year, and it is now being rolled out nationwide.
