Employees’ Provident Fund Organisation (EPFO) has introduced several transformative changes to its claim settlement process, effective from April 1, 2025.
These reforms aim to enhance efficiency, reduce paperwork, and improve the overall experience for its 7.5 crore members.
With a focus on digitization and automation, EPFO is setting new benchmarks in service delivery, ensuring faster and more streamlined access to provident fund (PF) benefits.
EPFO Changes: Increased Auto-Settlement Limit and Expanded Scope of Auto-Mode Claims
One of the most significant changes is the increase in the auto-settlement limit for advanced claims.
The limit has been raised from ₹1 lakh to ₹5 lakh, allowing members to withdraw higher amounts through the Automated Settlement of Advance Claims (ASAC) system.
This decision, approved during the 113th Executive Committee meeting of the Central Board of Trustees (CBT) in Srinagar, Jammu and Kashmir, reflects EPFO’s commitment to improving the ease of living for its members.
Initially introduced in April 2020 for illness-related advances, the auto-mode claim settlement system has now been expanded to include withdrawals for education, marriage, and housing needs.
This expansion ensures that members can access their funds for a wider range of purposes without delays.
Faster Claim Processing, Simplified Validation Formalities
EPFO’s automated claim process has significantly reduced settlement times.
Currently, 95% of claims are processed within three days, compared to the previous average of 10 days.
The organization achieved a record 2.16 crore auto-claim settlements in the current financial year, a substantial increase from 89.52 lakh claims in 2023–24.
EPFO has reduced the number of validation formalities required for PF withdrawals from 27 to 18.
It plans to further decrease this number to just six, streamlining the claim settlement process.
Upfront validations have been introduced to guide members on eligibility and admissibility, minimizing the filing of ineligible claims.
Claims that fail system validation undergo a second level of scrutiny and approval, rather than being outright rejected.
Introduction of UPI Withdrawals, Enhanced EPFO Member Autonomy and Easier PF Transfers
In a groundbreaking move, EPFO is set to integrate the Unified Payments Interface (UPI) into its withdrawal system.
Members will soon be able to receive their PF funds directly through UPI apps like Paytm, Google Pay, and PhonePe.
This initiative, expected to roll out by May or June 2025, aims to reduce settlement times to just minutes.
The UPI-based system may also extend to other schemes, such as the General Provident Fund (GPF) and Public Provident Fund (PPF).
EPFO has simplified the process for updating member details. Aadhaar-verified UAN holders can now make corrections independently through the online portal.
This reform eliminates the need for physical paperwork or intervention from EPFO offices, ensuring greater autonomy for members.
To facilitate smoother PF transfers, EPFO has removed the requirement for employer attestation for Aadhaar-verified UANs.
Currently, only 10% of transfer claims require member and employer attestation, further simplifying the process.
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