The Employees’ Provident Fund Organization (EPFO) has introduced auto-mode settlement for advance claims related to education, marriage, and housing. This system processes your claims without human intervention, ensuring faster and more efficient service.

Benefits of auto-mode settlement

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The new auto-mode settlement brings several advantages:

Quick processing: Claims are settled within 3-4 days instead of the usual 10 days.

No human intervention: The IT system handles all aspects of the process.

Higher limits: Advance claims can now go up to Rs 100,000.

How Auto-Mode Works

Automated IT System: Your claim, if KYC, eligibility, and bank validation are in place, gets processed automatically.

Extended Coverage: Now includes claims for education (para 68K), marriage (para 68K), and housing (para 68B).

The automated IT system processes claims automatically if KYC, eligibility, and bank validation are in place. The system has been extended to cover claims for education (para 68K), marriage (para 68K), and housing (para 68B).

“For example, Shri Anirudh Prasad applied for an illness advance on 9th May 2024 and received Rs 92,143 on May 11, 2024, within just 3 days,” EPFO explained in a statement.

During the financial year 2023-24, EPFO processed 44.5 million claims, with over 60% being advance claims. Out of 28.4 million advance claims, 8.952 million were settled using the auto-mode.

Rules for EPF Advances

Medical Advance (Rule 68J)

For medical advances, you can apply at any time, regardless of your membership duration with EPF. The maximum amount you can withdraw is up to 6 months’ basic salary and dearness allowance or your share with interest, whichever is lower. You’ll need a certificate from your employer or doctor to apply.

Education and Marriage Advance (Rule 68K)

For education and marriage advances, you need to have completed 7 years with EPFO. You can withdraw up to 50% of your share with interest, and this can be done three times. For marriage, you need to submit a declaration, and for higher education, a certificate regarding the course and estimated expenditure from the educational institution is required.

Housing Advance (Rule 68B)

Housing advances are available after 5 years of membership. You can withdraw funds for buying or constructing a house, as well as for repairs. The amount depends on the purpose:

Purchase/Construction: The least of 24-36 months’ basic salary, your share with interest, or the total cost.

Repairs: The least of 12 months’ basic salary, your share with interest, or the cost.

You can withdraw for repairs twice, with the second withdrawal available 10 years after the first.

How to apply

The EPF withdrawal process can be initiated online through the Member e-Sewa portal. You need to submit Form 31 online to file a claim.