Hyderabad: Ina major service upgrade for salaried employees across the country, the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh, aiming to provide quicker access to funds during times of urgent financial need.
The announcement was made in response to a question in the Lok Sabha, with Minister of State for Labour and Employment Sushri Shobha Karandlaje confirming that the new limit is intended to accelerate claim settlements under the Employees’ Provident Fund Scheme. The move is designed to improve digital service efficiency and reduce processing time, especially during medical emergencies, job loss, or unforeseen personal crises.
Officials emphasized that the increase is part of EPFO’s ongoing efforts to streamline member services under its digital transformation initiatives. According to the current protocol, advance claims of up to Rs 5 lakh will be automatically processed for eligible members, reducing delays and minimizing paperwork.
In a written reply to an Unstarred Question raised by MPs D.K. Aruna, Chamala Kiran Kumar Reddy, and Eatala Rajender, the Minister clarified that no violations or procedural complaints have been reported so far. This indicates a smooth implementation of the enhanced system across beneficiary states including Andhra Pradesh, Telangana, Bihar, and Kerala.
The Ministry reaffirmed its commitment to resolving grievances and improving ease of access for EPFO members. With over 27 crore subscribers nationwide, this update is expected to positively impact lakhs of beneficiaries by offering financial flexibility and reducing reliance on manual approvals.
