Priyanka
Share
The Employees' Provident Fund Organization (EPFO) is planning to increase the auto settlement limit for advance claims from the current ₹1 lakh to ₹5 lakh, significantly simplifying the withdrawal process for its 7.5 crore subscribers.
This enhancement will enable members to easily access their PF savings during important life events such as illness, education, marriage, or home purchase—without facing manual intervention.
Proposal Approved by Executive Committee, Awaits CBT Nod
The proposal was recently approved during the 113th Executive Committee meeting of the Central Board of Trustees (CBT) in Srinagar, Jammu & Kashmir, held on March 28, 2025.
Sumita Dawra, Secretary of the Ministry of Labour and Employment, confirmed the approval and emphasized that the change will simplify life for millions of EPFO members. The proposal will now move to the full CBT for final approval.
Auto Settlement System Sees Strong Growth
The auto-settlement system has seen a significant rise in efficiency:
2.16 crore auto claims settled till March 6, 2025, up from 89.52 lakh last year.
95% of claims are now processed automatically within three days.
Ramesh Krishnamurthy, Central Provident Fund Commissioner, stated that the process has not only sped up claims but also reduced human involvement, improving transparency and accessibility.
Expanded Claim Categories and Fewer Rejections
EPFO has also broadened the range of life situations eligible for automatic advance settlements, now covering:
Medical emergencies
Higher education
Marriage expenses
Home purchases
Additionally, system upgrades have significantly lowered the claim rejection rate from 50% to just 30%, ensuring smoother experiences for PF account holders.
