Big news for India’s 7.5 crore EPFO members! Starting August 2025, the Employees’ Provident Fund Organisation (EPFO) has rolled out a game-changing update, allowing you to withdraw up to ₹5 lakh from your provident fund (PF) automatically. This is a huge jump from the earlier ₹1 lakh limit, making it easier to access your savings for urgent needs like medical bills, education, or buying a home. The change is part of EPFO’s push to simplify processes and help workers during tough times. With faster withdrawals and less paperwork, here’s what you need to know to make the most of this update.
Auto-Settlement Limit Jumps to ₹5 Lakh
The EPFO has raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh, a move approved by the Central Board of Trustees in March 2025. This means you can now get up to ₹5 lakh in just three days without manual checks, as long as your KYC details like Aadhaar and bank account are verified. The system uses a central IT database to check eligibility, cutting down delays. This is a big win for emergencies, as 95% of claims are now settled automatically within days, compared to weeks earlier.
UPI and ATM Withdrawals by Mid-2025
By June 2025, EPFO plans to let you withdraw up to ₹1 lakh instantly using UPI apps like Paytm or Google Pay, or even from ATMs. This is part of the new EPFO 3.0 system, backed by the Ministry of Labour and Employment and the National Payments Corporation of India. You’ll also be able to check your PF balance directly on UPI platforms. For larger amounts up to ₹5 lakh, the auto-settlement process will still apply, ensuring quick access without long forms or employer approvals. This makes your PF savings as easy to use as a bank account.
| Withdrawal Type | Limit | Processing Time |
|---|---|---|
| Auto-Settlement | Up to ₹5 lakh | 3 days |
| UPI/ATM (from June) | Up to ₹1 lakh | Instant |
Wider Reasons for Withdrawals
The updated rules also make it easier to tap your PF for key life events. You can now use auto-settlement for needs like medical treatment, education, marriage, or housing. For example, after three years of membership, you can withdraw up to 90% of your PF for buying or building a house, a big relief for first-time homebuyers. The process has been simplified, with verification steps cut from 27 to 18, and EPFO aims to bring this down to just six. This means less hassle and faster access to your money when it matters most.
How to Prepare for Smooth Withdrawals
To use these new features, make sure your Universal Account Number (UAN) is active and linked to your Aadhaar, bank account, and PAN. Log into the EPFO portal to check your KYC details are up to date. If you’re planning a withdrawal, you won’t need employer approval for online claims if your KYC is complete. For larger claims or if you’ve left a job, ensure your exit date is updated to avoid delays. If your account stays inactive for three years after leaving a job, it could become harder to access, so act promptly.
A Step Towards Financial Ease
These changes show EPFO’s focus on making life easier for millions of workers. With 2.34 crore auto-claims processed in 2025 alone, up from 89.52 lakh last year, the system is clearly speeding up. Rejection rates have also dropped from 50% to 30%, thanks to better digital tools. Whether you’re saving for retirement or need cash for an emergency, these updates give you more control over your money. Check the EPFO website for the latest details and talk to your employer or a financial advisor to plan your next steps.