EPFO Auto Settlement Limit is going to increase up to Rs 5 lakh!|

Employees Provident Fund Organisation (EPFO) has planned to increase the auto settlement advance claim (ASAC) limit up to Rs 5 lakh. Earlier this limit was only Rs 1 lakh, but now preparations are being made to increase it.

According to a report by ANI on March 31, Ministry of Labour and Employment Secretary Sumit Dawra approved this proposal in the 113th Executive Committee (EC) meeting last week. This meeting was held in Srinagar on March 28 in which EPFO’s Central Provident Fund Commissioner Ramesh Krishnamurthi was also present.

Now this recommendation will be sent to the Central Board of Trustees (CBT) for approval. After getting approval, EPFO members will be able to claim PF up to Rs 5 lakh in auto mode!

Gluco Extend

What is EPFO Auto Claim?

EPFO had started Auro Claim settlement for the first time in April 2020, in which advance illness claim up to Rs 50,000 could be applied. In May 2024, this limit was increased to Rs 1 lakh.

Earlier EPFO members could withdraw advance PF only for illness or hospitalization. But now auto-mode settlement is also available for education, marriage and housing!

EPFO Claim Rejection has decreased!

Last year EPFO claim rejection rate was 50%, it has come down to 30%. In Auto claim solution, IT system processes the claims automatically, without any human intervention.

KYC and eligibility verification has also been reduced from 27% to 18%, and as per the new plans, it is ready to be reduced to 6%.

Claim settlement has become fast!

The government has started working on centralizing the EPFO member database and making it IT-enabled. Claims in which KYC, eligibility and bank details are correct, are automatically processed through IT tools.

Earlier PF claim settlement used to take 10 days, now it is done in just 3-4 days!

What should you do?

If you are a member of EPFO and are planning for PF withdrawal, it is important to keep your KYC and bank details updated. Use auto-mode claim for quick approval and dare to withdraw your money without any hassle!