In a major push to simplify provident fund access for its 7.5 crore members, the Employees’ Provident Fund Organisation (EPFO) is raising the auto-settlement limit under its advanced claim system fivefold — from ₹1 lakh to ₹5 lakh. The move, aimed at expanding the “Ease of Living” for millions, was approved by Sumita Dawra, Secretary, Ministry of Labour and Employment, during the 113th Executive Committee meeting of the Central Board of Trustees held last week in Srinagar, according to a ANI report.

The proposal, once cleared by the Central Board of Trustees (CBT), will enable EPFO members to withdraw up to ₹5 lakh through the Automated Settlement of Advance Claims (ASAC), the report added. The auto-mode was initially rolled out in April 2020 for medical emergencies and has since expanded to include education, marriage, and housing needs.

Back in May 2024, EPFO had raised the claim limit from ₹50,000 to ₹1 lakh. With the new proposed increase, withdrawals of up to ₹5 lakh would be processed in as little as three days — 95 percent of them without any human intervention, thanks to EPFO’s AI-driven auto-claim solution.

EPFO logged a record 2.16 crore auto-claim settlements this financial year (as of March 6, 2025), a massive leap from 89.52 lakh in 2023–24. Rejection rates, too, have fallen sharply — from 50 percent to 30 percent.