EPFO has increased the limit of auto-settlement of advance claim. This limit has increased from Rs 1 lakh to Rs 5 lakh. This move will make settlement easier for 7.5 crore members of EPFO.
There is good news for people working in the private sector. The Employees’ Provident Fund Organization (EPFO) has taken a big decision. Now EPFO members will get Rs 5 lakh in 3 days without paper. Actually, the limit of auto-settlement of advance claim has increased. This limit has increased from Rs 1 lakh to Rs 5 lakh. This move will make settlement easier for 7.5 crore members of EPFO.
What is the limit now?
The Employees’ Provident Fund Organization (EPFO) is making a big plan to provide relief to its crores of members. Currently the limit of auto claim settlement is ₹ 1 lakh, which was increased from ₹ 50,000 in May 2024. But now there is a preparation to increase this limit directly five times to ₹ 5 lakh. Its direct benefit will be given to those members who feel the need of funds quickly in cases like medical emergency, home repair, marriage or higher education.
Facility doubled due to auto claim settlement
In the financial year 2023-24, about 90 lakh people took advantage of auto claim settlement, which can increase to 2 crores in 2024-25. This data shows how much people have benefited from the digital process. Earlier, for withdrawals above 1 lakh, it was necessary to go to the EPFO office and get physical verification done, which will no longer be necessary with the increase in this limit. That is, now in just 3 days you will get Rs 5 lakh for your work without any document.
Withdrawal from ATM and UPI
EPFO is preparing such a technical framework in collaboration with the National Payments Corporation of India (NPCI), so that from June 2025, PF amount can also be withdrawn through ATM and UPI. This will be exactly like withdrawing money from a bank account through an ATM. This proposal may get a final approval in the next meeting of the CBT (Central Board of Trustees).
