EPFO Boosts Auto-Settlement Limit for Advance Claims: What You Need to Know

The Employees’ Provident Fund Organisation (EPFO) has significantly raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, allowing members to withdraw funds without manual verification. This change, announced by Labour Minister Mansukh Mandaviya, aims to expedite the disbursal process to within 72 hours. The initiative, first introduced during the pandemic, reflects the government's commitment to providing quick financial support. With a notable increase in new subscribers, particularly among young individuals, this move is expected to benefit millions. Read on to learn more about the implications of this change and its impact on EPFO members.

By Narendra Chaudhary Jun 24, 2025, 21:31 IST

Significant Increase in EPFO Auto-Settlement Limit

New Delhi: In a significant development for millions, the Employees’ Provident Fund Organisation (EPFO) has announced an increase in the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, as stated by Labour Minister Mansukh Mandaviya on Tuesday.

This adjustment allows members to withdraw funds without needing manual verification.

The EPFO initially implemented the auto-settlement of advance claims during the Covid-19 pandemic to facilitate quick financial support for its members.

Mandaviya confirmed, “The auto-settlement limit for EPFO claims has been raised to ₹5 lakh. These claims will be processed within three days, similar to the current auto claims procedure.”

In a post shared on the X social media platform, the minister described this as yet another "people-centric initiative" by the government led by Prime Minister Narendra Modi.

Mandaviya further emphasized, “EPFO has raised the Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 lakh, ensuring rapid disbursal within 72 hours.”

Earlier this year in March, the Executive Committee of the Central Board of Trustees approved the proposal to increase the ASAC limit to ₹5 lakh. This enhancement allows members to withdraw up to ₹5 lakh automatically.

In May 2024, the ASAC limit was previously raised from ₹50,000 to ₹1 lakh.

According to the minister, in the first two and a half months of the financial year 2025-26, EPFO has auto-settled 76.52 lakh claims, which accounts for 70% of all advance claims processed so far.

Additionally, EPFO welcomed 19.14 lakh new members in April, marking a remarkable 31.31% increase compared to March.

Notably, the data reveals a strong presence of young individuals aged 18-25 entering the workforce. This age group contributed 4.89 lakh new subscribers, representing 57.67% of the total new additions in April. This figure reflects a 10.05% rise compared to March 2025.

Furthermore, approximately 2.45 lakh new female subscribers joined EPFO in April, indicating a 17.63% increase from the previous month, as per the official announcement.