EPFO Big Announcement: PF Claims Up to ₹5 Lakh to Be Settled Automatically — Here’s How It Works

In a major relief for millions of salaried employees across the country, the Employees’ Provident Fund Organization (EPFO) has announced that Provident Fund (PF) claims of up to ₹5 lakh will now be settled automatically, without paperwork or delays.

Union Labor and Employment Minister Mansukh Mandaviya, speaking on June 24, 2025, confirmed that the auto-claim limit has been increased from ₹1 lakh to ₹5 lakh. This move is expected to benefit over 7.5 crore EPFO members, making fund withdrawals faster and easier — especially during emergencies.

Why This New Rule Matters

The auto-claim settlement facility was first introduced during the COVID-19 pandemic in 2020 to ease withdrawals for medical needs. Now, this facility has been expanded to cover key expenses such as:

• Education

• Marriage

• Home construction

The increase in the auto-claim limit to ₹5 lakh will be a huge relief for employees who rely on their PF savings to meet such important life expenses.

Key Benefits of EPFO’s New Auto-Claim Facility

This upgraded system brings several major improvements:

• Faster Processing: 95% of claims are now settled in just 3 days, compared to 10 days earlier — a big win for those needing urgent funds.

• UPI & ATM Withdrawals Coming Soon: By May-June 2025, members will be able to withdraw PF funds through UPI and ATMs, making the process even more convenient.

• Lower Rejection Rate: Claim rejection rates have dropped from 50% to just 30%, giving members greater confidence that their claims will be approved.

• Paperless & Hassle-Free: If your KYC (Know Your Customer) details — Aadhaar, PAN, and bank account — are updated and linked to your UAN (Universal Account Number), claims will be processed without any paperwork or employer approval.

How to Avail This Facility

Accessing this new, streamlined service is simple:

1. Log in to your UAN portal

2. Update KYC: Ensure your Aadhaar, PAN, and bank details are linked

3. Submit online claim

4. Funds will be credited directly to your bank account within 3 days

Once your UAN is linked with Aadhaar, employer approval is no longer required for updating bank details — making the process even smoother.

EPFO’s 72-Hour Target for All Claims

Looking ahead, EPFO aims to process all types of claims — PF, pension, insurance — within just 72 hours. The organization is adopting AI (Artificial Intelligence) and Machine Learning technologies to further enhance efficiency and the user experience for its members.

This initiative clearly shows EPFO’s commitment to providing modern, user-friendly services that match the expectations of today’s workforce.

For millions of EPFO members, this announcement comes as a welcome step toward faster financial access and greater convenience — ensuring that their hard-earned savings are available when they need them the most.

Author Profile

Kuldeep Singh Chundawat

My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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