EPFO Boosts Auto-Claims Limit to Rs 5 Lakh for Swift Access
The EPFO has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This enhancement facilitates quicker access to funds for members, with claims processed within three days. The decision reflects a focus on automation and improved member services.
- Country:
- India
On Tuesday, Union Labour Minister Mansukh Mandaviya announced a significant change in the Employees' Provident Fund Organisation (EPFO) policy, raising the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This move aims to expedite the financial assistance process for EPFO's vast membership.
The updated policy allows members of the EPFO to have their advance withdrawal claims of up to Rs 5 lakh settled within three days. This enhancement is expected to lead to faster access to funds, especially during urgent situations, and marks a vital improvement in the services provided by EPFO.
The EPFO, with over 7 crore members, first introduced this system during the COVID-19 pandemic. The auto-settlement process has since expanded, covering various needs such as illness, education, marriage, and housing. The increased automation has led to a 161% rise in claims processed in FY25. EPFO's commitment to efficient service delivery continues to be demonstrated by its focus on automation and transparency.
(With inputs from agencies.)
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