Claiming PF Just Got Easier! EPFO to Raise Auto Claim Limit to Rs 5 Lakh - Here's How it Works

The Employees’ Provident Fund Organisation (EPFO) is set to increase the auto-settlement limit for Provident Fund (PF) withdrawals from Rs 1 lakh to Rs 5 lakh. This move aims to enhance the “Ease of Living” for its 7.5 crore members by expediting fund access through the Automated Settlement of Advance Claims (ASAC). The proposal, approved by Sumita Dawra, Secretary, Ministry of Labour and Employment, is pending final clearance from the Central Board of Trustees (CBT).

Key Highlights of the EPFO Auto-Settlement Update:

The auto-settlement limit will increase from Rs 1 lakh to Rs 5 lakh.

Withdrawals under the new limit will be processed within three days.

95% of claims will be settled without human intervention using AI-driven automation.

Rejection rates for claims have dropped from 50% to 30%.

The change will benefit PF members seeking advances for medical emergencies, education, marriage, and housing.

Read Also: EPFO Shares Important Update: More Money, Fast Withdrawal

How the New PF Withdrawal System Works:

Eligibility for Auto-Settlement:

Members can apply for an advance withdrawal under medical, education, marriage, or housing needs.

Upfront validations have been developed to inform members about eligibility criteria before submitting a claim.

Online Claim Filing Process:

PF account holders can log in to the EPFO member portal or use the UMANG app.

Navigate to ‘Online Services’ and select ‘Claim (Form-31, 19, 10C & 10D).’

Enter bank details and authenticate with OTP verification.

Processing Time & AI-Driven Automation:

Once a claim is submitted, the AI-driven auto-settlement system processes 95% of requests within three days.

Reduced validation requirements now brought down from 27 steps to 18, with further reductions planned to six.

Introduction of UPI and ATM Withdrawals:

EPFO is working on enabling PF withdrawals via Unified Payments Interface (UPI) and ATMs.

This feature is expected to be available by May or June 2025.

Impact of the Auto-Settlement Expansion:

EPFO recorded a historic high of 2.16 crore auto-claim settlements as of March 6, 2025.

More than 99.31% of claims are now submitted online.

60% of advance claims are currently processed in auto mode.

The increase in the auto-settlement limit from Rs 1 lakh to Rs 5 lakh marks a significant step towards streamlining PF withdrawals for millions of EPFO members. With faster processing times, AI integration, and the upcoming UPI/ATM withdrawal facility, the system is becoming more efficient and user-friendly. 

The proposal is awaiting final approval from the Central Board of Trustees and, once implemented, will simplify fund access for members in need.