EPFO has given a big gift to the employed people. Now you can withdraw PF advance up to ₹5 lakh for important works like illness, marriage, education or house construction through auto-settlement without any official approval. Earlier this limit was only ₹1 lakh. This change will help in getting money quickly at the time of need.
PF account holders: If you also have a PF account, then there is a great good news for you. The Employees Provident Fund Organization (EPFO) has taken such a decision, which has made it easier and faster to withdraw money in times of need. EPFO has increased the auto-settlement limit for advance claim from ₹ 1 lakh to ₹ 5 lakh directly. This is a huge gift, which will enable lakhs of employees to get immediate financial help in an emergency. Let us understand in simple language what this new rule is and what benefits you will get from it.
What is this auto-settlement and what has changed now?
Auto-settlement is a high-tech facility of EPFO, in which your advance claim money is passed directly by the computer system without any official verification or approval. This reduces the time taken in settling the claim to a great extent.
Earlier rule
Till now, you could only withdraw an advance of up to ₹1 lakh under this facility for reasons like illness, marriage, studies.
New rule
Now this limit has been increased 5 times to ₹ 5 lakh. That is, now you will get money for big expenses in a jiffy.
For what purposes can you withdraw this money?
EPFO first started this facility during the Corona epidemic, but now its scope has been increased. You can withdraw up to ₹ 5 lakh in advance through auto-settlement for these reasons.
Treatment of illness
Education of children
Marriage
Building or buying a house
Game of numbers: How fast has EPFO become?
You can guess how successful this new system is from these figures:
161% jump
In the financial year 2024-25, EPFO settled a record 2.34 crore claims through auto-mode, which is 161% more than last year’s 89.52 lakh claims.
70% claims automatic
In the first two and a half months of this year (FY 2025-26), 70% of the total advance claims settled have been settled through auto-settlement. This shows how fast and smart EPFO has become now.
Not only this, EPFO has also made these 6 major reforms recently
This change is part of the big reform campaign that EPFO is running for its members. These are some other major changes made recently.
KYC became easy
Now you will not have to depend on the employer or EPFO to improve the member profile.
UAN activation by face
Now UAN will be activated by just showing face on Umang app (Face Authentication).
No need to upload photo of chequebook
Now there is no need to upload photo of bank cheque or passbook for claim.
Automatic transfer
Now there is no need of approval of old employer for PF transfer on changing job.
Easy to add bank account
Now there is no need of approval of employer to add bank account in UAN.
Centralized pension system
A new system has been started to ensure that pension money is received on time and easily.
Big decision for employees
Increasing the auto-settlement limit to ₹5 lakh by EPFO is a very big and welcome step for crores of employees. This will not only meet the need of money in an emergency quickly, but will also make the entire process more transparent. It is clear from these reforms that EPFO is now working rapidly towards making life easier for its members.
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