EPFO Increases Auto-Settlement Limit to ₹5 Lakh, Boosting Fast-Track Claims for Members

New Delhi: In a major boost to employee benefits, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from the existing ₹1 lakh to ₹5 lakh. This significant move is expected to benefit lakhs of EPFO members by enabling faster access to funds, especially during urgent financial needs.

The auto-settlement system, originally introduced during the COVID-19 pandemic to offer swift relief to members, has since expanded to include advance claims related to illness, education, marriage, and housing. The fully automated process ensures minimal human intervention, promoting both speed and transparency in claim settlement.

In the financial year 2024–25, EPFO processed a record 2.34 crore advance claims through its auto-settlement system—a remarkable 161% increase compared to the previous year. Of all advance claims settled in that year, 59% were processed via the automated route.

Building on this momentum, the current financial year 2025–26 has already seen 76.52 lakh claims auto-settled in just the first two and a half months. This accounts for nearly 70% of all advance claims settled so far this year, underscoring EPFO’s strong push towards automation and member-centric services.

With the new ₹5 lakh threshold, a wider range of advance claims now fall under the auto-settlement mechanism, reducing the processing time to just three days from submission. This change is expected to provide timely financial relief to members during critical moments.