In a bid to enhance member services, EPFO now allows auto-settlement limit for advance claims for Rs 5 lakh. The limit was raised from Rs 1 lakh to Rs 5 lakh last year so that EPFO members receive funds faster, especially in times of urgent need. EPFO had first introduced auto-settlement of advance claims during the COVID-19 pandemic.
These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.
The additional advance claims with elevated limit of Rs 5 lakh now qualifes for auto-settlement, leading to their processing within three days (72 hours) of submission.
In March this year, the Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) approved a one-time Amnesty Scheme to address compliance issues arising from income tax–recognized trusts that are yet to be covered or granted exemption under the EPF & MP Act, 1952, duly taking into account the provisions of the Finance Act, 2026. The proposed scheme seeks to bring establishments and trusts into compliance within a defined six-month period, primarily to protect workers’ interests while waiving damages, interest and penalties for those that have already provided benefits equal to or better than the statutory scheme.
It allows retrospective relaxation or exemption subject to specified conditions and ensures that all eligible employees receive statutory benefits. The measure is expected to resolve over 100 active litigation cases, along with several others, thereby benefiting thousands of trust members. The scheme shall apply to those exempted establishments which have complied with the provisions of EPF & MP Act, 1952.
The Board approved the new simplified SOP on EPF Exemption, consolidating the existing four SOPs and the Exemption Manual into a single comprehensive framework, which aims to reduce compliance burden. The SOP also provides an end-to-end digital process for surrender and transfer of past accumulations. This technology-driven governance approach will make audit of exempted establishments more transparent and efficient. A unified framework will promote ease of doing business, ensure transparency with paperless work, faster processing of surrender/cancellation of exemption cases and incentivize compliant behavior through risk-based online audit.
