If you’ve ever faced an emergency and needed quick access to your Provident Fund (PF) money, there’s some good news. The Employees’ Provident Fund Organisation (EPFO) has just made it easier — and faster — to withdraw up to ₹5 lakh under its auto-settlement mode.
Why This Update Matters Right Now
Until now, EPFO members could withdraw only up to ₹1 lakh in advance through the auto-settlement process — a system that allows claims to be processed quickly without manual approval.
That limit has now been raised to ₹5 lakh, a significant change aimed at supporting members facing urgent financial needs like medical emergencies, education, weddings, or home purchases.
And here’s the best part: auto-settlement claims are typically processed within 72 hours (3 working days), so funds reach you much faster than the traditional route.
What Is Auto-Settlement and How Does It Work?
Auto-settlement is EPFO’s way of simplifying advance claim processing. It uses automation — not human intervention — to verify and settle eligible claims, making the process faster, more transparent, and less prone to delays.
This feature first launched during the COVID-19 pandemic when many members needed urgent cash. Since then, it’s been expanded for several personal reasons, including:
- Medical treatment
- Higher education
- Marriage expenses
- Purchasing or building a house
New Withdrawal Limit Details – July 2025 Update
Here’s a quick comparison of the old and new limits under auto-settlement:
| Criteria | Earlier Limit | Updated Limit (July 2025) |
|---|---|---|
| Maximum auto-settlement amount | ₹1,00,000 | ₹5,00,000 |
| Claim processing time | 3 days (72 hrs) | 3 days (unchanged) |
| Need for human approval | No | No |
| Eligible reasons for advance | Emergency, education, marriage, illness, home |
This change applies automatically to eligible members — no extra steps or forms are needed.
Who Benefits Most from This Update?
With over 7 crore EPFO members across India, this revised withdrawal limit can make a real difference for:
- Families dealing with urgent medical bills
- Students needing fast tuition support
- Individuals planning weddings or big life events
- Workers building or buying homes
According to Union Labour Minister Mansukh Mandaviya, this change will help lakhs of people access their savings more efficiently when it matters most.
EPFO Claim Settlement Is Getting Faster
This isn’t the only reform EPFO has rolled out recently. In fact, the pace of auto-settlement claims has significantly improved:
- In 2023–24: 89.52 lakh claims settled via auto mode
- In 2024–25: 2.34 crore claims settled (a 161% increase!)
- In just 2.5 months of 2025–26: 76.52 lakh claims settled (covering 70% of all advance claims)
These numbers reflect more than just automation — they show a growing commitment to faster, more efficient service for members.
How to EPFO Withdraw Money via Auto-Settlement Mode
If you’re wondering how to access this increased ₹5 lakh limit, here’s what to do:
- Log in to your EPFO account using the UAN portal.
- Go to ‘Online Services’ and click on ‘Claim (Form-31, 19, 10C & 10D)’.
- Verify your KYC details, especially your Aadhaar and bank account.
- Choose ‘PF Advance (Form 31)’ as your claim type.
- Select the reason for advance withdrawal and enter the required amount.
- Submit the claim and wait for the SMS confirmation. If eligible, your money will reach your account within 72 hours.
