EPFO Raises Auto-Settlement Advance Withdrawal Limit to ₹5 Lakhs

Labour Minister Mansukh Mandaviya declared that the auto-settlement threshold for advance withdrawals from provident funds would be raised from Rs 1 lakh to Rs 5 lakh. Through automated processing, this improvement enables EPFO (Employees’ Provident Fund Organisation) members to get their advance withdrawal claims up to Rs 5 lakh in three days. As of right now, only claims up to Rs 1 lakh are eligible for the auto-settlement method, which ensures a three-day processing period.

A PTI article indicates that the Union Minister declared that EPFO has increased the auto-settlement threshold for advance claims from Rs 1 lakh to Rs 5 lakh, guaranteeing its members quicker access to funds, especially in times of need. The minister emphasised that hundreds of thousands of customers would benefit from this notable enhancement in service delivery.

Advance claims for medical needs, educational costs, marriage, and housing necessities are now included in the program. Without human involvement, the automated processing system manages these claims on its own, producing quick and precise results.

According to the minister’s announcement, the EPFO reached a major milestone in FY25 by processing 2.34 crore advance claims through automated settlement, representing a 161% increase from 89.52 lakh claims in FY24. The minister emphasised that, in 2024–2025, automated settlements accounted for 59% of all advance claims, an increase from 31% in 2023–2024.