The Employees’ Provident Fund Organisation (EPFO) has announced a major relief for its 7.5 crore members by increasing the Auto Settlement Advance Claim (ASAC) limit from ₹1 lakh to ₹5 lakh. This move aims to promote ‘Ease of Living’ and provide quicker financial support to members when needed.

Sumita Dawra, Secretary of the Ministry of Labor and Employment, approved this proposal during the 113th meeting of the Executive Committee of the Central Board of Trustees (CBT) held last week. The proposal will now be sent to the CBT for final approval. Once approved, EPFO members can withdraw up to ₹5 lakh from their Provident Fund (PF) account using the auto mode system.

The meeting, which took place on March 28 in Srinagar, Jammu and Kashmir, was attended by EPFO Central Provident Fund Commissioner Ramesh Krishnamurthy. The approval of this proposal will provide financial relief and accessibility to millions of employees.

Auto mode claim settlement was first introduced in April 2020 for medical emergencies. In May 2024, the claim limit was increased from ₹50,000 to ₹1 lakh. Now, with a fivefold increase, members will have greater access to their funds.

Additionally, EPFO has extended the auto-claim facility to cover three more categories:

• Education
• Marriage
• Housing

Previously, PF withdrawals were permitted only for illness and hospitalization expenses.

Under this new system, claims are processed in just three days, with 95% of claims being settled automatically. This is a significant improvement compared to earlier times when claim settlement took much longer.

In the financial year 2024-25, EPFO has settled 2.16 crore auto-claims, a record increase compared to 89.52 lakh claims in 2023-24. Additionally, the claim rejection rate has been reduced from 50% to 30%, ensuring smoother processing for employees.

EPFO is set to introduce another groundbreaking feature – withdrawal of PF funds via UPI and ATMs. This initiative is expected to launch by May or June 2025 and will significantly enhance accessibility for members.

The Ministry of Labor and Employment has already approved the proposal in collaboration with NPCI (National Payments Corporation of India). In the future, this facility may also be extended to General Provident Fund (GPF) for government employees and Public Provident Fund (PPF) for bank customers.

This decision by EPFO brings a massive financial relief to employees, allowing them to withdraw up to ₹5 lakh quickly and efficiently. The expansion of the auto-claim facility to cover education, marriage, and housing, along with the upcoming UPI and ATM withdrawal system, will make accessing PF funds easier than ever before.

For EPFO members, these changes represent a step towards greater financial security and accessibility, reinforcing the government's commitment to improving employee welfare and financial management.