EPFO raises auto settlement limit for PF withdrawals by 5 times – Check new limit
June 24, 2025
Union Labour and Employment Minister Mansukh Mandaviya has said that retirement fund body has increased the auto claim settlement limit of provident funds (PF) for faster fund access, news agency PTI has reported.
In a major relief for crores of members, the Employees Provident Fund Organisation (EPFO) has increased the auto settlement limit for advance PF claims from Rs 1 lakh to Rs 5 lakh. It was one of the long-pending demands of EPFO subscribers to access their funds faster in times of urgency.
Union Labour and Employment Minister Mansukh Mandaviya has said that the retirement fund body has increased the auto claim settlement limit of provident funds (PF) for faster fund access, news agency ANI has reported.
The government in Parliament had said that more than 60% of advance claims were now being processed through the auto settlement mode.
The government had approved the proposal to enhance the limit during a meeting held in Srinagar in March this year. The recommendation was subsequently approved by the Central Board of Trustees.
This revision is now expected to enhance the ease of living for crores of EPFO members.
The auto settlement mode for withdrawal of provident funds was allowed during the COVID-19 pandemic in 2020 to allow members to access their funds faster and hassle-free manner.
The automatic mode of claim settlement was first allowed for illness or hospital advances. It was later allowed for claims pertaining to marriage, education and housing with EPFO increasing the auto settlement of the advanced claim limit from Rs 50,000 to Rs 1 lakh.
The retirement fund body also introduced auto mode settlement of advance claims for three more categories like education, marriage, and housing. Data suggests that around 99% claims EPFO receives now are in online mode and those auto-mode are processed within three days.
Besides, there have been multiple other changes that have been introduced by the EPFO recently. The aim of these changes is to give more convenience to members, digitise the processes and enhance transparency. There have been changes related to profile updation, PF transfer on changing jobs, and also policies related to higher pension.
[The Financial Express]
