New Delhi: In a move aimed at enhancing member convenience, the Employees’ Provident Fund Organisation (EPFO) has raised the limit for automated settlement of emergency claims from ₹1 lakh to ₹5 lakh. The change is expected to benefit over 7.5 crore EPFO members, according to Union Labour Minister Mansukh Mandaviya.
The increased limit applies to emergency situations such as medical treatment, education, or marriage, allowing members faster access to funds. “This decision will be particularly helpful during urgent needs, where time is of the essence,” Mandaviya said.
The automated system, originally introduced during the COVID-19 pandemic, enables claims to be processed through the IT platform without human intervention, significantly reducing processing time. Claims that previously took up to 10 days can now be settled in just 3 to 4 days.
Under the updated guidelines:
* Members can withdraw funds for medical expenses of family members.
* Withdrawals for education and marriage are allowed after seven years of EPFO membership, up to 50% of the accumulated amount, for a maximum of three times.
* Documentary proof, such as marriage declarations or educational certificates, is mandatory.
* For housing purposes, withdrawals are permitted twice a year after completing five years of membership.
* The facility can be accessed online through Form 31.
The Labour Ministry stated that the move is aimed at improving financial accessibility for working professionals during times of distress.