Union Labour and Employment Minister Mansukh Mandaviya on Tuesday announced that the Employees’ Provident Fund Organisation (EPFO) has raised the auto-settlement limit for advance claims to ₹5 lakh, up from the previous ₹1 lakh, to ensure quicker access to funds.
The auto-settlement facility, originally introduced during the Covid pandemic in 2020 to enable faster disbursal of provident fund (PF) advances, allows members to access their money during emergencies without manual intervention.
Social media users largely welcomed the change, calling it a step in the right direction. “Great move by EPFO! Increasing the auto-settlement limit to ₹5 lakh is a huge relief for members facing urgent financial needs. Speedy access to their own money is not just convenience — it’s dignity,” wrote one user in his X post.
Meanwhile, EPFO added 19.14 lakh members on a net basis in April 2025, a 31.31 percent rise over March and a 1.17 percent increase year-on-year, according to Labour Ministry data.
The ministry attributed the growth to improved job opportunities, greater awareness of employee benefits, and intensified outreach by the EPFO.
Young workers aged 18 to 25 formed the largest share of new subscribers, accounting for 57.67 percent, or 4.89 lakh individuals. In addition, 15.77 lakh members who had exited earlier rejoined the scheme during the month. Maharashtra led all states in net payroll additions.
(By arrangement with livemint.com)
