EPFO hikes auto-settlement limit for advance claims to Rs 5 lakh in ‘people-centric move’
New Delhi: In a big relief for millions of people, the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims (ASAC) from Rs 1 lakh to Rs 5 lakh, Labour Minister Mansukh Mandaviya said on Tuesday.
The move will enable withdrawal of the amount without the requirement of manual verification.
EPFO first introduced auto-settlement of advance claims during the Covid-19 pandemic to provide quick financial assistance to its members.
“The limit for auto settlement of the EPFO claims has been increased to Rs 5 lakh. Such claims will get cleared within three days like the process for auto claims at present,” Mandaviya said.
In a post on X social media platform, the minister said this is another “people-centric move” under the Prime Minister Narendra Modi government.
“EPFO enhances Auto-Settlement Limit for Advance Claims from Rs 1 Lakh to Rs 5 lakh, with fast-track disbursal now within 72 hours,” Mandaviya noted.
In March this year, the Central Board of Trustees’ Executive Committee (EC) had approved the proposal to enhance the ASAC limit to Rs 5 lakh. With an increase in the auto-settlement limit, the members can automatically withdraw up to Rs 5 lakh instantly.
In May 2024, the ASAC limit was increased to Rs 1 lakh from Rs 50,000.
According to the minister, in the first two-and-a-half months of the ongoing financial year 2025-26, EPFO has auto-settled 76.52 lakh claims, constituting 70 per cent of all the advance claims settled so far.
EPFO added as many as 19.14 lakh net members during April this year. This figure depicts a significant increase of 31.31 per cent over March.
A noticeable aspect of the data is the dominance of the young 18-25 age group who are in their first jobs. The EPFO added 4.89 lakh new subscribers in the 18-25 age group, constituting a significant 57.67 per cent of the total new subscribers added in April this year. New subscribers in the 18-25 age group added in the month show an increase of 10.05 per cent compared to the previous month of March 2025.
Around 2.45 lakhs new female subscribers joined the EPFO in April, which represents a 17.63 per cent increase compared to the previous month, the official statement said.