The Employees Provident Fund Organization (EPFO) has announced a major update that will benefit government employees.
The limit for the Auto Settlement Advance Claim (ASAC) has been raised from Rs 1 lakh to Rs 5 lakh, allowing members to withdraw a higher amount from their Provident Fund.
Approval Process and Next Steps
The decision to increase the ASAC limit was approved by Sumita Doura, Secretary of the Ministry of Labor
and Employment, during the 113th Executive Committee (EC) meeting of the Central Board of Trustees (CBT) on March 28 in Srinagar.
EPFO’s Central Provident Fund Commissioner, Ramesh Krishnamurthy, was also present at the meeting.
The proposal will now be sent to the CBT for final approval. Once approved, EPFO members will be able to claim advances up to Rs 5 lakh.
Evolution of EPFO’s Auto Claim Facility
EPFO introduced the auto-claim facility in April 2020, initially allowing withdrawals of up to Rs 50,000 for medical emergencies. In May 2024, this limit was raised to Rs 1 lakh.
Earlier, the facility was limited to illness and hospitalization cases. Now, it has been expanded to include three additional categories: education, marriage, and home purchase.
Reduction in EPFO Claim Rejections
EPFO has significantly reduced claim rejections. Previously, up to 50% of claims were rejected, but this has now dropped to 30%.
The process is now fully digitized, with claims being processed automatically by the IT system without human intervention.
Simplified PF Withdrawal Rules
The process of withdrawing Provident Fund (PF) has become easier. Validation requirements have been reduced from 27% to 18%, with further reductions planned.
The government is working on centralizing and digitizing the EPFO member database. Once KYC, eligibility,
and bank verification are completed, claims will be processed automatically. This has reduced the processing time from 10 days to just 3-4 days.
These changes aim to make the EPFO system more efficient and user-friendly for its members.
