New Delhi, June 24: Union Labour & Employment Minister Mansukh Mandaviya on Tuesday announced a significant enhancement in the Employees’ Provident Fund Organisation’s (EPFO) services. The auto-settlement limit for advance claims has been raised from ₹1 lakh to ₹5 lakh, aiming to ensure quicker fund access for members during urgent situations.
Mandaviya highlighted that this move is expected to benefit lakhs of EPFO members by accelerating the disbursal process during times of need. The auto-settlement facility, initially introduced during the COVID-19 pandemic, was developed to provide rapid financial assistance. Since then, it has been expanded to cover advance claims for purposes such as illness, education, marriage, and housing.
“These claims are processed automatically by the system, without human intervention, ensuring transparency and swift turnaround,” the Minister said.
He further noted that EPFO has undertaken a series of reforms to improve user experience. Key changes include simplification of KYC processes, easier member detail corrections, and reducing dependency on employers and EPFO offices for profile updates.
According to Mandaviya, EPFO processed a record 2.34 crore advance claims through auto-settlement in FY 2024-25 — a 161% surge from 89.52 lakh in FY 2023-24. The share of advance claims settled automatically rose to 59% in FY 2024-25, compared to 31% the previous year.
In the first 2.5 months of FY 2025-26 alone, EPFO has already auto-settled 76.52 lakh claims, representing 70% of all advance claims processed so far.
“These reforms have significantly improved the speed of settlements, reduced member grievances, and contributed to enhancing the overall ease of living for EPFO members,” Mandaviya concluded.
