In a major move to enhance service delivery and improve financial access for its members, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakhs. This decision is expected to significantly speed up the claim disbursal process, especially during times of urgent need.
Key Highlights:
- New Limit:
The auto-claim settlement threshold has been raised from ₹1 lakh to ₹5 lakh. - Faster Processing:
Claims under the new limit will be settled within 72 hours, ensuring quick financial support. - Eligible Purposes:
Auto-settlement covers claims for illness, education, marriage, and housing. - Fully Automated Process:
Claims are processed by the system without human intervention, promoting transparency and efficiency.
Impressive Growth in Automation
EPFO initially introduced the auto-settlement system during the COVID-19 pandemic. Since then, it has grown into a robust feature of EPFO’s digital transformation:
- FY 2024–25:
EPFO processed 2.34 crore claims via auto-settlement—a 161% increase over the previous year.
59% of all claims were settled through automation. - FY 2025–26 (till mid-June):
Already 76.52 lakh claims auto-settled, accounting for nearly 70% of total advance claims.
A Step Toward Member-Centric Governance
Describing the development as a “people-centric move,” Union Minister Dr. Mansukh Mandaviya emphasized the Modi government’s continued focus on improving public service delivery.
This latest initiative aligns with EPFO’s broader efforts to leverage technology for process simplification and minimize member grievances. The organization remains committed to ensuring a seamless, efficient, and transparent service experience for millions of EPF members across India.
