The Employees Provident Fund Organisation (EPFO) has announced an increase in the auto-settlement of advance claims (ASAC) limit, raising it from Rs 1 lakh to Rs 5 lakh. This change is aimed at making life easier for its 7.5 crore members, according to media report. Sumita Dawra, Secretary of the Ministry of Labour and Employment, approved the proposal during the 113th meeting of the Executive Committee (EC) of the Central Board of Trustees (CBT) in Srinagar, Jammu and Kashmir, on March 28.
Dawra said, “This revision will improve the ease of living for crores of our members.” After the approval, the recommendation will be sent for final approval by the CBT. Once approved, EPFO members will be able to withdraw up to Rs 5 lakh through the auto-settlement process.
EPFO’s auto-settlement process has grown significantly, with a record 2.16 crore auto-claims processed by March 6, 2025, compared to just 89.52 lakh claims the previous year. This shows the system’s increasing efficiency, with 95% of claims now being settled automatically within three days.
“The auto-settlement process has greatly simplified claim settlements, reducing the time and human intervention needed,” said Ramesh Krishnamurthi, Central Provident Fund Commissioner. “We are dedicated to improving efficiency, and with more automated claims, our goal is to make it easier for all members to access their PF funds.”
EPFO has expanded the auto-settlement of advance claims to cover illness, education, marriage, housing, and more. The rejection rate of claims has dropped from 50% to 30%. Additionally, EPFO will soon allow Provident Fund withdrawals through UPI and ATMs.
The Ministry of Labour and Employment has approved the plan, allowing members to access their funds through UPI and ATMs by May or June 2025. “This new system will make it easier for members to access their PF savings instantly,” said Dawra. “It’s a groundbreaking move that could set a precedent for other government savings schemes, like GPF and PPF.”