EPFO Update: There is major update for EPFO members. The Employees Provident Fund Organization (EPFO) has made a significant change. They’ve raised the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This move is expected to benefit the 7.5 crore EPFO members. The proposal received approval from Sumita Dawra, Secretary of the Ministry of Labor and Employment, during the 113th meeting of the Central Board of Trustees (CBT) held in Srinagar, Jammu and Kashmir, on March 28.
Sumita Dawra mentioned that this update will simplify life for millions of PF members. Following this approval, the recommendation will be forwarded for the final nod from the CBT. Once approved, EPFO members will be able to withdraw up to Rs 5 lakh through the auto-settlement process. This system allows claims to be settled automatically, which speeds up the process and minimizes human involvement. The efficiency of the EPFO’s auto-settlement has significantly improved, with a record 2.16 crore auto-claims processed by March 6, 2025, compared to just 89.52 lakh the previous year. Now, 95% of claims are settled automatically within three days.
What are the benefits?
Central Provident Fund Commissioner Ramesh Krishnamurthy stated that the auto-settlement process has streamlined claim settlements, reducing both time and human intervention. They are dedicated to further enhancing this process to ensure all members can easily access their PF funds. Additionally, EPFO has expanded the categories eligible for automatic advance claims, which now include reasons like illness, education, marriage, home purchases, and other needs. Thanks to these system improvements, the claim rejection rate has also dropped from 50% last year to 30% this year.
EPFO is set to make it easier for people to withdraw their Provident Fund (PF) using Unified Payments Interface (UPI) and ATMs. The Ministry of Labor and Employment has given the green light for this initiative. By the end of May or June 2025, members will be able to access their funds through these methods. Sumita Dawra mentioned that this new approach will allow members to quickly tap into their PF savings via UPI and ATMs. This groundbreaking step could pave the way for similar enhancements in other government savings programs, like the General Provident Fund (GPF) for government workers and the Public Provident Fund (PPF) for bank customers.
