The Employees’ Provident Fund Organisation (EPFO) has enhanced the auto-settlement limit for advance claims from ₹1 lakh at present to ₹5 lakh. Union Labour Minister Mansukh Mandaviya told reporters here on Tuesday that the move would help lakhs of EPFO members to receive funds faster, especially in times of urgent need.
The Minister said the 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 advance 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 said.
He said the EPFO had taken a series of reforms to make its services faster, transparent and user-friendly. Mr. Mandaviya added that in 2024–25, the EPFO processed a record 2.34 crore advance claims through auto-settlement, a 161% increase compared to 89.52 lakh claims in 2023–24.
“Notably, 59% of all advance claims in 2024–25 were settled through the auto mode as compared to 31% in 2023-24. Further, in just the first 2.5 months of FY 2025–26, the EPFO has already auto-settled 76.52 lakh claims, constituting 70% of all advance claims settled so far,” he said.
