EPFO PF Withdrawn: As part of the ongoing reform initiative in the Employees’ Provident Fund Organisation (EPFO), members can now withdraw up to Rs 5 lakh in advance from their EPF accounts using the auto settlement mode when needed. Currently, the auto-settlement system allows EPF members to withdraw a maximum of Rs 100,000 from their accounts. Importantly, the EPFO is obligated to process advance withdrawal claims for auto-settlement within three days.
This limit for advance auto settlement has been raised
The increase in the advance auto settlement limit has been made considering the current emergency needs of EPF members. On Tuesday, Union Labor and Employment Minister Mansukh Mandaviya announced that the EPFO has raised the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh to ensure quicker access to funds for EPFO members during urgent situations. He mentioned that millions of EPF members will benefit from this increase in the advance withdrawal limit. Notably, the EPFO currently serves over 70 million members.
What makes auto claim settlement special?
This advance withdrawal facility from EPF funds under auto settlement was introduced to provide financial relief during the COVID-19 pandemic. Later, this facility was expanded to include purposes like illness, education, marriage, and home purchases. The unique aspect of auto claim settlement is its ability to process claims swiftly and transparently, without any human intervention.
According to the Labour Ministry, in the year 2024-25, the EPFO settled a record 2.34 crore claims through auto settlement, which is a 161 percent increase compared to the 89.52 lakh claims in the year 2023-24. In 2023-24, 31 percent of advance withdrawal claims were settled in auto mode, which rose to 59 percent in 2024-25.
According to the Labour Ministry, in the year 2024-25, EPFO settled a record 2.34 crore claims through auto settlement, which is 161 percent more than the 89.52 lakh claims in the year 2023-24. While in 2023-24, 31 percent advance withdrawal claims were settled in auto mode, which increased to 59 percent in 2024-25. According to the Labour Minister, in the first two and a half months of the current financial year 2025-26 itself, EPFO has settled 76.52 lakh claims through auto settlement, which is 70 percent of all advance claims so far.
According to the Labor Minister, this increase in advance settlement figures reflects EPFO’s commitment to providing prompt and effective services to its members. The ongoing reforms in EPF have not only expedited the claim settlement process but also reduced member complaints.
