New Delhi: There is good news for employees who have an EPF account. The Employees’ Provident Fund Organisation (EPFO) has made a big change. Now, EPF members can withdraw up to Rs 5 lakh through an advance claim without any manual checking.
What has changed?
Earlier, EPFO allowed auto-settlement of claims only up to Rs 1 lakh. This meant if someone wanted more than Rs 1 lakh, the claim had to be checked manually. That took time and delayed the process.
Now, EPFO has raised the limit to Rs 5 lakh. So, claims up to Rs 5 lakh will be settled automatically, making the process faster and easier.
Why was this decision taken?
EPFO took this step to help employees get money quickly in emergency situations. The auto-settlement system started during the COVID-19 pandemic to offer quick financial support. Seeing its success, EPFO has now made it a permanent facility.
What are the benefits?
- No need to visit the EPFO office for advance claims up to Rs 5 lakh
- Faster processing of online claims
- Quick money transfer to the bank account
- Employees will experience better ease of living
Change in numbers
In May 2024, the auto-settlement limit was increased from Rs 50,000 to Rs 1 lakh. After that, the number of auto-settled claims jumped from 90 lakh in FY24 to nearly 2 crore in FY25.
When was this decision approved?
This proposal was approved in March 2025 by EPFO’s Executive Committee of the Central Board of Trustees. The rule is now in effect.
Important points to remember
- Auto-settlement is only for KYC-verified accounts
- Claims can be made through the EPFO portal or UMANG app
- This move will help employees withdraw up to Rs 5 lakh fully online in urgent times, without any delay or hassle.
