Synopsis: The Employees Provident Fund Organisation (EPFO) has increased the auto-settlement limit for advance claims from ?1 lakh to ?5 lakh, aiming to ensure quicker financial access for members during urgent needs. This automation now handles 70% of all such claims and has garnered international praise from the ILO.
In a major step toward empowering its members with quicker financial relief, the Employees Provident Fund Organisation (EPFO) has raised its auto-settlement limit for advance claims from ?1 lakh to ?5 lakh. Union Labour Minister Mansukh Mandaviya announced the move, emphasizing that the decision will significantly boost efficiency and reduce wait times during times of personal or medical emergencies.
Faster Relief in Times of Need
Initially introduced during the COVID-19 pandemic to provide quick financial assistance, the auto-settlement system has since evolved. It now covers a broad range of advance claims—including those for illness, education, marriage, and housing. With automation handling these processes, claimants receive quicker settlements without human intervention, ensuring transparency and reliability.
Record Surge in Auto Claims
The fiscal year 2024–25 saw a remarkable surge in usage, with 2.34 crore advance claims processed via auto-settlement—a 161% increase over the previous year. Notably, 59% of all such claims last year were cleared through this system, up from 31% in 2023–24.
Early data from FY 2025–26 reveals that 76.52 lakh claims have already been settled automatically, accounting for a staggering 70% of all advance claims.
International Acclaim
The International Labour Organisation (ILO) has lauded India for its sweeping strides in expanding social security. As of 2025, 64.3% of the Indian population—nearly 94 crore people—are covered under at least one social protection scheme. This is a massive jump from 2015, when only 19% of the population had such coverage, placing India second globally in terms of total beneficiaries.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Readers are advised to consult official EPFO sources or financial professionals before making any decisions based on this information.
