EPFO changes auto-settlement limit for advance claims: Now get up to ₹5 lakh within 72 hours

The Employees Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. The auto-claim settlement will also be done in a fast-track mode within 72 hours.

"Another People-Centric Move under Modi Government! EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours," Union Labour and Employment Minister Mansukh Mandaviya said in a post on X, on Tuesday (June 24, 2025).

How will it benefit EPF members?

The Provident Fund body first introduced the auto-settlement of advance claims during the COVID-19 pandemic. The feature is aimed at providing quick financial assistance to members.

While initially this feature allowed auto-settlement of claims for Covid-19 only, it has now been extended to cover advance claims for the reasons such as:

• Illness
• Education
• Marriage
• Housing purposes.

In a statement, the Ministry of Labour said the move to increase the auto-settlement limit will help lakhs of EPFO members as they will be able to receive more funds faster in times of need.

"EPFO has taken a significant step forward in its efforts to enhance member services by increasing the auto-settlement limit for advance claims from existing ₹1 lakh to ₹5 lakhs. This move will help lakhs of EPFO members receive funds faster, especially in times of urgent need," EPFO said.

How auto-claim settlement works

These auto-claim settlement is processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.

In the financial year 2024–25, EPFO processed 2.34 crore advance claims through auto-settlement, recording a sharp increase of 161% over the previous year. Notably, 59% of all advance claims in 2024–25 were settled through the auto mode.

In the first two and a half months of FY 2025–26, EPFO has already auto-settled 76.52 lakh claims, which is around 70% of all advance claims settled so far.

"With the elevated limit of ₹5 lakh, additional advance claims will now qualify for auto-settlement, leading to their processing within three days of submission. This enhanced limit and faster access to funds will help members get timely financial support when they need it the most," EPFO said.