The government gave a big gift to private job holders, PF auto claim limit increased from Rs 1 lakh to Rs 5 lakh..
The Employees Provident Fund Organization (EPFO) has given a big relief to the PF account holders by increasing the amount of advance claims from Rs 1 lakh to Rs 5 lakh. Labor and Employment Minister Mansukh Mandaviya said on Tuesday that EPFO has increased the limit of auto claims (EPFO auto‑claim limit increase) from Rs 1 lakh to Rs 5 lakh. This means that more than 7.4 crore subscribers can now withdraw up to Rs 5 lakh for education, illness, marriage, and housing through auto claims without any further intervention.
Mansukh Mandaviya said, "Like the current auto claims process, such claims will be settled within three days. This decision is in line with our commitment to provide seamless and timely assistance to workers."
Auto claim facility was started in Covid.
During the Kovid period, many people were facing many problems financially, so the government started the facility of auto claims. This service was launched in April 2020 for sickness or hospital advances during the COVID-19 pandemic. Then, the Ministry of Labor and Employment expanded the categories for auto-claim settlement to include education, marriage, and housing. In 2024, the EPFO approved increasing the limit for auto-mode settlement of advance claims for education, marriage, and housing from Rs 50,000 to Rs 1 lakh. But now the government has increased this amount to Rs 5 lakh (PF advance ₹5lakh).
2.34 crore claims settled
EPFO settled 2.34 crore claims through auto-claim in FY 2024-25. This is 161% more than the settlement of 89.52 lakh claims in FY 2023-24. About 59 percent of all advance claims were settled through auto mode in 2024-25. It was 31 per cent in 2023-24.
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