The Employees’ Provident Fund Organisation (EPFO) has increased the auto claim settlement limit from Rs 1 lakh to Rs 5 lakh. This update was shared by Labour and Employment Minister Mansukh Mandaviya.
Highlights
- EPFO has raised the auto claim limit to Rs 5 lakh, up from Rs 1 lakh, for education, illness, marriage, and housing.
- Claims under this limit will be processed within three days without manual checks.
- In 2024-25, 2.34 crore claims were settled automatically, with 70% of claims in early 2025-26 processed this way.
The change allows over 7.4 crore members to submit claims for up to Rs 5 lakh for needs like education, medical treatment, marriage, and buying a home without any extra checks or steps.
Faster Processing in Place
“These claims will now be cleared within three days, just like the current system,” said Mandaviya.
He noted that the move is part of EPFO’s continued focus on speeding up services through automation.
The process is meant to reduce wait times and make fund access simpler for members.
Auto-Claim System Gaining Traction
The automatic process began in April 2020 during the COVID-19 outbreak, starting with medical claims. Later, it included education, marriage, and housing. In May 2024, the limit was raised to Rs 1 lakh from Rs 50,000.
Now it has gone up to Rs 5 lakh. In 2024-25, EPFO handled 2.34 crore advance claims through this setup—a jump of 161% from 89.52 lakh in 2023-24.
About 59% of all such claims were done automatically last year, compared to 31% the year before. In just the first 2.5 months of 2025-26, 76.52 lakh claims were cleared this way, making up 70% of all early claim settlements.
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