EPFO raises auto-settlement limit for advance claims for members to ₹5 lakh

• The Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, aiming to provide quicker financial support to its members.

• The move will benefit lakhs of EPFO members, especially during urgent needs like illness, education, marriage, and housing.

• Auto-settlement ensures claims are processed digitally without human intervention, improving speed and transparency.

Significant Growth in Auto-Settled Claims

• In FY 2024–25, EPFO auto-settled 2.34 crore advance claims, a 161% jump from 89.52 lakh claims in FY 2023–24.

• Auto-settlement share rose from 31% in 2023–24 to 59% in 2024–25.

• In the first 2.5 months of FY 2025–26, 76.52 lakh claims (70% of total) were auto-settled.

• ILO (International Labour Organisation) has recognized India’s progress, stating 64.3% of the population (94 crore people) are covered under at least one social protection benefit in 2024.

• This is a massive increase from 19% in 2015, making India second globally in terms of beneficiary count

• EPFO is a statutory body under the Ministry of Labour and Employment, Government of India.

• It manages the Employees’ Provident Fund (EPF), a retirement savings scheme for workers in the organized sector.

• Established under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

• Provident Fund (EPF)

• Pension Scheme (EPS)

• Insurance Scheme (EDLI)

• Ensures social security, including savings, pensions, and insurance for employees.

• Headquartered in New Delhi.