EPFO Boosts Auto Settlement Value to Rs. 5 Lakh

The Employees’ Provident Fund Organisation (EPFO) announced changes in the auto-settlement threshold of its PF claims to Rs. 5 lakh from Rs. 50,000. Auto-settlement in EPFO is such that provident fund claims get processed and settled automatically, without human involvement.

Raising the auto-settlement limit is part of EPFO’s ongoing digital transformation. The raise from Rs. 50,000 to Rs. 5 lakh indicates the government’s focus on making social security funds more accessible, especially after the pandemic, when many workers wanted to have quick access to their PF savings. The new change will ensure faster financial aid during emergencies or job loss. This will boost the digital efficiency and reduce manual workload.

Additionally, EPFO has amended the limit with the aim of speeding up claim processing for employees, removing the need for manual steps or intervention. The change is likely to improve the fund accessibility, cut down the processing delays, and benefit crores of EPF members across India.

Who Can Benefit from the Increased Limit?

The increased limit is more beneficial for the salaried employees working in the private sector who invest in EPF for their emergency needs or retirement days.

Key Updates in EPFO Auto Settlement System

• Auto-settlement limit: the threshold has been increased from Rs. 50,000 to Rs. 5,00,000.
• Human intervention: Previously, human intervention was needed over Rs. 50,000. But now, with the revision, it is not needed up to Rs. 5 lakh.
• Document verification: Previously, it was done manually for larger claims and is now entirely digital for claims within the new threshold.
• Processing time: Processing time has been cut down to 3-7 working days from 7-20 working days.
• Beneficiary coverage: These changes allow more people to benefit from the system, making it easier for a larger number of employees to access their PF money when they need it.
• Claim Mode: The claim mode has shifted from mostly manual methods to a more convenient digital and mobile app-based process.