In a major move benefiting millions of salaried individuals, the Employees' Provident Fund Organisation (EPFO) has announced that members can now receive up to ₹5 lakh through auto-settlement of advance claims — without submitting a single document.
This significant decision marks a major leap in making financial assistance quicker and more accessible, especially in times of urgent need. Let’s dive deeper into what this means for EPFO members and how it will impact advance claim settlements.
Previously, EPFO allowed auto-settlement of advance claims up to ₹1 lakh. This threshold was raised from ₹50,000 to ₹1 lakh in May 2024. Now, in a landmark step, EPFO is preparing to increase the limit fivefold to ₹5 lakh.
This means that EPFO members will now be able to get an advance withdrawal of up to ₹5 lakh directly into their bank accounts within three days, without needing to submit any paperwork or visit an office physically.
This move is set to benefit over 75 million EPFO members across the country, making the claim process faster, easier, and entirely digital.
The primary beneficiaries of this increased auto-settlement limit are those who urgently need funds for reasons such as:
Medical emergencies requiring immediate hospital expenses
Home repairs or renovations to address urgent living conditions
Wedding expenses for themselves or family members
Higher education needs for children or self
In all such scenarios, where time is critical, the enhanced auto-settlement limit will allow members to access substantial funds quickly without bureaucratic delays.
The auto-settlement mechanism is part of EPFO's ongoing digital transformation efforts. Here’s how it works:
A member applies for an advance claim through the UMANG app, EPFO member portal, or other online platforms.
If the UAN (Universal Account Number) is Aadhaar-verified, and bank account details are correctly seeded and verified, the system automatically processes the claim.
No physical documents are required.
The amount is credited directly to the member’s registered bank account within 72 hours (three working days).
This seamless process eliminates the need for manual verification unless there are discrepancies in the member’s details.
The move to enhance the auto-claim limit comes on the back of strong adoption of EPFO's digital services:
During the financial year 2023-24, nearly 9 million members benefited from auto-settlement of claims.
This number is projected to double, with over 20 million members expected to use the facility during FY 2024-25.
These numbers highlight the growing confidence among EPFO members in the organization’s digital initiatives and their efficiency.
Raising the auto-settlement limit addresses a critical need for liquidity among working-class citizens, particularly in the private sector. Medical emergencies, unexpected educational expenses, or urgent home repairs often require quick access to funds — and this move empowers employees to meet such challenges without unnecessary stress.
Moreover, by removing paperwork and relying on Aadhaar-based authentication, EPFO continues to strengthen its mission of providing easy, transparent, and fast services to its members.
The EPFO's decision to raise the auto-advance claim limit to ₹5 lakh without paperwork is a game-changer for millions of employees across India. In just three days, individuals can now access substantial funds during times of need — all thanks to the organization’s push for digitization and member-friendly reforms.
Employees should ensure their UAN is Aadhaar-linked and all personal details are up-to-date to take full advantage of this facility. With the digital revolution picking up pace, EPFO is truly making life easier for India's workforce, one innovation at a time.
