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.
