New Delhi: In a major relief for crores of salaried employees across India, the Employees’ Provident Fund Organisation (EPFO) has significantly increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This move is aimed at providing quicker and more convenient access to funds for EPFO members, especially during emergencies.
Union Labour and Employment Minister Mansukh Mandaviya made the announcement on Tuesday, stating that this enhancement in EPFO services is expected to benefit millions of members. The initiative is a part of the Centre’s broader plan to strengthen digital access and streamline public welfare services.
What Is Auto-Settlement of PF Claims?
Auto-settlement allows EPFO to process certain types of advance withdrawal claims automatically, without manual intervention. This was first introduced during the COVID-19 pandemic, enabling members to receive funds faster in times of urgent financial need.
Now, with the limit raised to ₹5 lakh, members facing emergencies such as medical expenses, home repairs, or education costs can claim a larger amount with greater speed and fewer hurdles.
Claims Will Be Processed Within 3 Days
Highlighting the system’s efficiency, Minister Mandaviya revealed that the EPFO settled 2.32 crore auto claims in FY 2024-25, up from 89.52 lakh in FY 2023-24 — a jump that reflects growing trust in the platform and its capabilities.
The new rule ensures that advance claims are settled within just three working days, drastically cutting down on the long waiting periods previously associated with PF withdrawals.
Warning Against Third-Party Agents
EPFO also warned its members against using cyber cafes, unauthorized agents, or fintech companies to manage PF-related services. Many of these entities reportedly charge hefty fees for services that are officially available free of cost through EPFO’s online portal.
Members are strongly advised to use the official EPFO website or UMANG mobile app to manage claims, update KYC details, or lodge complaints. Using third parties can compromise sensitive personal information and lead to financial fraud.
“External entities are not authorized to handle EPFO claims or services. Members should not share their Aadhaar, PAN, or bank details with anyone claiming to assist for a fee,” EPFO clarified.
Massive Surge in Membership in April 2025
In another positive development, the Ministry of Labour reported that EPFO added 19.14 lakh members on a net basis in April 2025. This marks a 31.31% increase over March 2025, and a 1.17% rise compared to April 2024.
Out of these, 8.49 lakh were new members, an increase of 12.49% over the previous month — signaling rising formal employment and increased confidence in EPFO’s services among India’s workforce.
What This Means for You
Auto-claim settlement up to ₹5 lakh means faster access to emergency funds.
Online-only access ensures transparency, speed, and fraud protection.
Membership growth shows EPFO is becoming more inclusive and efficient.
This decision underlines the government’s commitment to making EPFO services faster, safer, and more accessible for India’s salaried and retired population.
Author Profile
- 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.
Latest entries
AUTOMOBILEJuly 13, 2025Kia Carnival 2025 Review: The Ultimate Luxury MPV That Redefines Family Travel- AUTOMOBILEJuly 13, 2025Maruti Suzuki XL7 2025: A Spacious 7‑Seater MPV with SUV Appeal – Features, Price & Launch Details
- INDIAJuly 13, 2025PAN Card Address Update: How to Change Your Address Easily Online
- INDIAJuly 13, 2025Dearness Allowance May Rise by 6% as 8th Pay Commission Nears Implementation
Follow Us on WhatsApp