EPFO Auto Claim Settlement Improves Significantly With Rs 2.34 Crore Claims Settled In FY25

Employees’ Provident Fund Organisation (EPFO) auto claim settlement improves the overall claim settlement. In a post on X (formerly Twitter), on April 10, 2025, Minister of Labour and Employment, Mansukh Mandaviya, posted the numbers appreciating the efforts EPFO has been putting in to improve its services. “Remarkable Growth in Auto Claim Settlements !”, the post reads. 

EPF is a mandatory scheme to offer by companies employing 20 or more employees. However, being one of the largest social security schemes in India, EPFO has been facing several operational issues for quite a long time. In response to the increasing number of grievances, EPFO has taken several measures to improve its services.

Main Reasons For Claim Rejection:

According to EPFO, the main reasons for complaints include the change in personal details and the fund withdrawal. This is because the claims are mostly rejected for personal details mismatch and approval requirements in withdrawal claims.

Auto-Settlement In EPFO:

To deal with this, EPFO introduced the auto-claim settlement in 2020 for fund withdrawal for medical treatment for self and family members. The limit of such withdrawal was also increased later to Rs 1 lakh from Rs 50,000.

The data shows that auto settlement has tremendously been useful. The number of auto claim settlements has increased from 90 lakh in 2023-24 to 2.34 claims in 2024-25. The amount disbursed under auto claims also increased from Rs 12.605 crore in 2023-24 to Rs 32,848 crore in 2024-25, according to the data shared by the minister.

After the auto settlement was allowed for more types of claims in April 2024, the total number of auto claim settlements has improved considerably. EPFO now allows auto claim settlement for medical exigencies, education, marriage, and house construction.

The current limit for these claims is Rs 1 lakh, which is expected to increase to Rs 5 lakh. The proposal is likely to be discussed in the next Central Board of Trustee (CBT) meeting.

In addition to this; the total settlement time has also reduced from around 10 days to around 3-4 days due to auto settlement mode.

Recently, it has eliminated the need to upload a cheque leaf or attested copy of a bank passbook for EPF fund withdrawal for filing claims online. This change in the documentation requirements is expected to benefit around six crore members immediately.

It will further reduce the withdrawal claim formalities and make the process easier. 

In addition, EPFO has included 15 more banks for employees' contribution collection and faster processing of funds.