Daijiworld Media Network – New Delhi
New Delhi, Jun 24: In a major relief for millions of salaried individuals, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from Rs 1 lac to Rs 5 lac, Union Labour Minister Mansukh Mandaviya announced on Tuesday.
This move, which eliminates the need for manual verification, will allow EPFO members to withdraw up to Rs 5 lac swiftly, with claims settled within 72 hours.
The auto-settlement facility was first introduced during the Covid-19 pandemic to expedite emergency financial support. “The limit for auto settlement of EPFO claims has been increased to Rs 5 lac. These claims will now be cleared within three days, similar to the current auto-claim process,” Mandaviya posted on X.
Calling it a “people-centric” decision under Prime Minister Narendra Modi’s government, the minister emphasized that this enhancement would significantly ease financial access for provident fund holders.
The Central Board of Trustees' Executive Committee had already approved the proposal to hike the ASAC (Auto Settlement of Advance Claims) limit in March this year. In May, the limit had been raised to Rs 1 lac from Rs 50,000.
Between April and mid-June of the financial year 2025-26, EPFO has already auto-settled 76.52 lac claims, accounting for nearly 70% of all advance claims processed during this period.
EPFO has also reported a sharp rise in membership. In April alone, the body added 19.14 lac net members — a 31.31% jump over March. A significant portion of these new members belonged to the 18–25 age group, largely first-time job holders. Around 4.89 lac new subscribers in this age category were added in April, representing 57.67% of total new additions.
Female participation also saw a notable rise. Approximately 2.45 lac women joined the EPFO in April — a 17.63% increase from the previous month, reflecting growing inclusion of women in the formal workforce.
The revised auto-claim facility is expected to bring further ease and efficiency to fund access, especially for young and newly employed individuals during financial emergencies.