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New PF Auto Settlement Limit Announced

For those employed and utilizing a Provident Fund (PF) account, recent updates from the Employees' Provident Fund Organization (EPFO) are noteworthy. On June 24, 2025, Union Minister for Labour and Employment, Mansukh Mandaviya, announced a significant increase in the auto-claim settlement limit from ₹1 lakh to ₹5 lakhs, benefiting over 7.5 crore individuals. This change allows members to withdraw larger sums from their PF accounts in times of urgent financial need.

Previous Limit Changes

The EPFO introduced the auto-claim facility in April 2020, initially allowing withdrawals of up to ₹50,000. This limit was raised to ₹1 lakh in May 2024, and now it has been further increased to ₹5 lakhs, streamlining access to funds.

Faster Claim Settlement Process

The claim settlement process has also been expedited, now taking only 3 to 4 days compared to the previous duration of 10 to 15 days. The EPFO is expanding the auto-claim facility to include withdrawals for marriage, education, and home purchases, in addition to medical expenses.

How Auto Claim Settlement Works

• The auto settlement process is automated, requiring no manual intervention from employees.
• To utilize this feature, your Universal Account Number (UAN) must be linked to your Aadhaar, PAN, and bank account, with KYC completed. Once a withdrawal request is submitted, the system will automatically initiate the claim verification process.
• Your claim will be processed within 3 to 4 days, and the requested amount will be directly credited to your bank account.

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