EPFO proposes fivefold increase in auto-settlement limit for advance claims

In a major move to enhance the 'Ease of Living' for its 7.5 crore members, the Employees' Provident Fund Organisation (EPFO) has proposed to increase the automatic settlement limit for advance claims (ASAC) fivefold, from Rs 1 lakh to Rs 5 lakh, sources told ANI.

The proposal was approved by Sumitra Dawra, Secretary, Ministry of Labour and Employment, during the 113th Executive Committee (EC) meeting of the Central Board of Trustees (CBT), held in Srinagar, Jammu & Kashmir, on March 28. The meeting was also attended by Ramesh Krishnamurthi, Central Provident Fund Commissioner, EPFO.

According to sources, this revision aims to streamline and expedite the withdrawal process, providing greater financial flexibility to EPFO members during emergencies. The move is expected to significantly improve financial accessibility and ease of living for crores of employees.

The proposal will now be forwarded to the Central Board of Trustees (CBT) for final approval. Once approved, EPFO members will be able to withdraw up to Rs 5 lakh under the automatic settlement process, ensuring faster access to funds without manual intervention.