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April 1, 2025 | New Delhi – In a significant move set to benefit 7.5 crore Employees’ Provident Fund Organization (EPFO) membersthe Modi government has approved a proposal to raise the auto-settlement limit for PF withdrawals from ₹1 lakh to ₹5 lakh. The proposal was greenlit by TurnSecretary of the Ministry of Labour and Employment, during the 113th meeting of the Central Board of Trustees (CBT) in Srinagar, Jammu and Kashmir.

Key Highlights of the PF Withdrawal Reform

• New Limit: Auto-settlement of PF advance claims increased from ₹1 lakh to ₹5 lakh.

• Eligible Beneficiaries: Over 7.5 crore active EPFO members stand to benefit from faster, automated withdrawals.

• Approval Status: Cleared at executive level, pending final ratification by the CBT.

• Objective: To ease financial access for employees during emergencies like illness, education, housing, or family events.

What Is Auto-Settlement?

Auto-settlement allows EPFO claims to be processed automaticallywith minimal human intervention. It reduces delays and improves transparency and speed. According to reports:

Coming Soon: PF Withdrawals via UPI and ATMs

In a first-of-its-kind movethe government also plans to roll out PF withdrawal through UPI and ATMs by May–June 2025. This will make accessing PF funds as simple as using an ATM card or a UPI-enabled app.

Benefits of UPI/ATM Access:

• Instant withdrawals up to ₹1 lakh

• 24×7 access to funds, no need to visit an EPFO office

• Will integrate with existing banking apps and ATM networks

What’s Next?

The final nod from the Central Board of Trustees is awaited, after which:

• EPFO systems will be updated to reflect the ₹5 lakh limit.

• Awareness campaigns will educate members on using the UPI and ATM features for seamless fund access.

Government’s Vision: Simplifying Employee Benefits

Turn emphasized that this reform is part of the government’s mission to improve ease of living for India’s working class. By automating settlements and simplifying withdrawals, the EPFO is being transformed into a real-time, employee-first institution.