Employees’ Provident Fund Organisation (EPFO) has introduced two significant reforms aimed at simplifying the claim settlement process and enhancing ease of living for its members and ease of doing business for employers.
These changes, effective from April 1, 2025, reflect EPFO’s commitment to leveraging technology and streamlining operations to provide a seamless experience for its stakeholders.
With over 7.5 crore active members and 78 lakh pensioners, EPFO’s initiatives are set to revolutionize the way claims are processed and managed.
Reform 1: Increased Limit for Auto-Mode Claim Settlements
One of the key reforms introduced by EPFO is the enhancement of the auto-settlement limit for advance claims.
The threshold has been raised from ₹1 lakh to ₹5 lakh, enabling members to withdraw larger amounts without manual intervention.
This change is expected to benefit members in urgent situations, such as medical emergencies, housing needs, education expenses, and marriage-related costs.
The auto-mode claim settlement process has significantly improved efficiency, with claims now being processed within three days.
As of March 6, 2025, EPFO has settled a record 2.16 crore auto-mode claims, compared to 89.52 lakh claims in the previous financial year.
This reform not only reduces processing time but also minimizes paperwork and administrative bottlenecks, making the system more user-friendly.
EPFO Reform 2: Integration of UPI and ATM Withdrawals
EPFO has also announced the integration of Unified Payments Interface (UPI) and ATM withdrawals for Provident Fund access.
This groundbreaking initiative will allow members to withdraw their PF savings instantly through UPI and ATMs, eliminating the need for physical visits to EPFO offices.
The system is expected to be operational by May or June 2025, providing members with greater convenience and accessibility.
The integration of UPI and ATM withdrawals aligns with EPFO’s vision of embracing digital transformation to enhance service delivery.
By leveraging technology, EPFO aims to set a precedent for other government savings schemes, such as the General Provident Fund (GPF) and Public Provident Fund (PPF).
EPFO Reforms: Impact on Members and Employers
The reforms introduced by EPFO are designed to enhance ease of living for its members.
The increased auto-settlement limit and integration of UPI and ATM withdrawals ensure quicker access to funds for members.
This change helps reduce stress and uncertainty during emergencies.
The simplified claim settlement process allows members to focus on their financial needs more effectively. It eliminates the burden of dealing with administrative hurdles.
EPFO’s initiatives also aim to improve ease of doing business for employers.
By streamlining operations and reducing compliance complexities, EPFO enables employers to focus on their core business activities.
The reforms contribute to a more transparent and efficient system, fostering trust and collaboration between EPFO and its stakeholders.
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