As per the notification dated 24th June 2025, the Employees’ Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakhs to enhance service delivery and improve financial access for its members. This decision is expected to significantly speed up the claim disbursal process, especially during times of urgent need. Claims under the new limit will be settled within 72 hours and shall be processed by the system without human intervention, promoting transparency and efficiency. It is to be noted that Auto-settlement covers claims for illness, education, marriage, and housing. EPFO initially introduced the auto-settlement system during the COVID-19 pandemic. Since then, EPFO has processed claims worth crores. For the FY 2024-25 alone, it has processed 2.34 crore claims via auto-settlement—a 161% increase over the previous year.

For more details, please download the official circular or send your query to legal@ihrcgroup.com

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