A big announcement has brought joy to crores of working employees in India. The Employees’ Provident Fund Organisation (EPFO) has increased the limit of advance withdrawal from ₹1 lakh to ₹5 lakh. This facility has been brought under the auto-settlement mode, making the withdrawal process easier and faster.
Why Is This Decision Important?
For the working class across the country, the Provident Fund (PF) is a major financial safety net. Often in life, there are situations when sudden financial needs arise, such as:
- Treatment of serious illness
- Children’s education or marriage
- Purchasing or constructing a house
- Or any emergency situation
In such moments, EPFO’s new decision comes as a big relief.
What Is the New Limit?
| Category | Old Limit | New Limit |
|---|---|---|
| Advance PF Withdrawal | ₹1,00,000 | ₹5,00,000 |
Now, up to ₹5 lakh can be automatically processed and credited to your bank account within 3 working days—without needing to visit any EPFO office.
What Is Auto-Settlement?
Auto-settlement means that you don’t have to physically visit the EPFO office for claim approval. Once you apply through the UMANG app or EPFO portal, an AI-based system will automatically verify the claim and documents, and settle it.
Key Features:
- No human intervention
- Claim verified automatically
- Funds credited in 3 working days
- Entire process is fully digital
By the Numbers
- In the financial year 2024–25, 2.34 crore claims were registered
- A 161% increase compared to the previous year
- 70% of claims were settled via auto-mode
- Over 7 crore members are expected to benefit from this service
Who Can Benefit?
This facility is available to all active EPFO contributors, who have:
- An active UAN (Universal Account Number)
- Aadhar linked to UAN
- Updated KYC
- Valid bank account linked
- Completed e-nomination
Reasons You Can Withdraw in Advance
| Reason | Eligibility |
|---|---|
| Medical | For treatment of self, spouse, or children |
| Education | For higher education of self or children |
| Marriage | For self, children, or siblings |
| Home Building | For purchase, construction, or renovation of house or land |
| Calamity | In case of natural disasters or COVID-like emergencies |
How to Apply Online?
Steps to Apply (via UMANG App or EPFO Website):
- Visit: https://unifiedportal-mem.epfindia.gov.in/
- Go to “Online Services” > “Claim (Form-31, 19, 10C & 10D)”
- Verify your bank details and Aadhaar number
- Select the purpose and upload required documents
- Submit the application using OTP
Note: If you haven’t completed e-nomination, your application may be rejected.
What’s Next – Withdraw PF via ATM and UPI?
According to Labour Minister Mansukh Mandaviya, the government is working on a prototype to allow PF withdrawals via UPI, ATMs, or other digital platforms. This will make access to PF even more seamless and real-time.
Why This EPFO Step Deserves Praise
1. Fast Processing – Money in just 3 days
2 . Time-saving – No physical visits needed
3 . Emergency Support – Useful for medical, marriage, and education
4 . Supports Digital India – Paperless and automated
5 . Transparent and Reliable – AI-driven claim approval
What Should You Do Next?
- If your UAN is not activated, do it now
- Update your KYC (Aadhaar, PAN, Bank)
- Complete your e-nomination
- Download and use the UMANG app
