EPFO raises auto-settlement limit for advance claims to ₹5 lakh
On 24 June 2025 in New Delhi, the Employees' Provident Fund Organisation raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh.
Summary
The Employees' Provident Fund Organisation (EPFO) raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, the Labour Ministry said in New Delhi on 24 June 2025. Auto-settlement, first introduced during the COVID-19 pandemic, now covers advance claims for illness, education, marriage and housing, and such claims are processed within three days without human involvement. In 2024â25 EPFO auto-settled a record 2.34 crore advance claims, 161% more than the previous year, and 59% of all advance claims that year were settled in auto mode.
Key facts
- New limit
- ₹5 lakh (from ₹1 lakh)
- Started
- During COVID-19 pandemic
- Covers
- Illness, education, marriage, housing advances
- Processing time
- Within three days
- FY 2024â25
- Record 2.34 crore auto-settled claims (+161%)
- Auto-mode share FY25
- 59% of advance claims
Practice MCQs 2 questions
To what amount did EPFO raise the auto-settlement limit for advance claims in June 2025?
Show answer
Correct answer: C â ₹5 lakh
PIB: EPFO increased the auto-settlement limit for advance claims from the existing ₹1 lakh to ₹5 lakh.
How many advance claims did EPFO process through auto-settlement in FY 2024â25, a record according to the Labour Ministry?
Show answer
Correct answer: A â 2.34 crore
PIB: in FY 2024â25 EPFO processed a record 2.34 crore advance claims through auto-settlement, up 161% over the previous year.