The Staff’ Provident Fund Organisation (EPFO) has elevated the restrict for auto settlement of claims to Rs 5 lakh from Rs 1 lakh, Minister for Labour and Employment Mansukh Mandaviya mentioned on Tuesday. This implies over 7.4 crore subscribers of the retirement fund physique can now withdraw their funds by advance claims as much as Rs 5 lakh for training, sickness, marriage and housing with none additional intervention.
“The restrict for auto settlement of the EPFO claims has been elevated to Rs 5 lakh. Such claims will get cleared inside three days like the method for auto claims at current,” Mandaviya mentioned.
“This development highlights EPFO’s robust give attention to automation and delivering sooner, extra environment friendly providers to its members,” he mentioned.
What’s EPFO auto declare settlement?
The auto-claim settlement course of, which is the automated processing of claims with none human intervention for advance claims, was first launched in April 2020 throughout the Covid-19 pandemic for sickness or hospital advances. Then, the Ministry of Labour and Employment had expanded the classes for auto-claim settlement to incorporate training, marriage and housing. In Could 2024, the EPFO authorised the hike within the ceiling for auto-mode settlement of advance claims for training, marriage and housing to Rs 1 lakh from Rs 50,000.
Within the monetary yr 2024-25, the EPFO processed a file 2.34 crore advance claims by auto-settlement, a 161 per cent enhance in comparison with 89.52 lakh claims in monetary yr 2023-24, the Minister mentioned. Nearly 59 per cent of all advance claims in 2024-25 have been settled by the auto mode as in comparison with 31 per cent in 2023-24, he mentioned.
Within the first 2.5 months of the continuing monetary yr 2025-26, EPFO has auto-settled 76.52 lakh claims, constituting 70 per cent of all of the advance claims settled to date, he mentioned.
© The Indian Specific Pvt Ltd