EPFO rules: PF withdrawals will get easier with auto-settlement, here is how it works
Follow UsEPFO plans to make final PF withdrawals faster through auto-settlement.
PF balances may soon transfer automatically when employees change jobs.
The new changes aim to reduce paperwork and simplify the process for members.
The Employees’ Provident Fund Organisation (EPFO) is preparing to make the provident fund withdrawals faster and simpler for millions of salaried employees across the country. The retirement fund body now plans to expand its auto-settlement system to the final PF withdrawal claims. Once active, this could reduce the waiting time to claim the PF once the member leaves a job or retires. Currently, the facility is only available for the advance or partial withdrawals of up to Rs 5 lakh. Moreover, EPFO is also working on an automatic account transfer system that would move the PF balances to a worker’s new employer account without requiring forms or manual requests. The proposed changes are expected to benefit more than seven crore EPFO members and reduce paperwork significantly nationwide.
SurveyCentral Provident Fund Commissioner Ramesh Krishnamurthi said the organisation wants to extend auto-settlement beyond advance claims and include final withdrawals as well. Under the current system, eligible advance claims are processed within three days through an automated process.
Also read: Motorola Edge 70 Pro+ may launch in India soon: Here is what you can expect
The proposed expansion means workers may no longer have to wait long periods to receive their final provident fund amount after changing jobs or retiring. The move is aimed at reducing manual checks and speeding up payments directly into members’ bank accounts.
EPFO is also planning a major change in the transfer process when employees switch companies. According to Krishnamurthi, members will not have to submit separate forms to transfer PF balances from one account to another. The organisation intends to automatically shift funds to the latest member account linked with the new employer.
The auto-settlement system has already seen large-scale use. As of February 25, 2026, EPFO had processed over 3.52 crore claims under the automated mode for amounts up to Rs 5 lakh. The limit was increased from Rs 1 lakh to Rs 5 lakh in June last year to improve claim processing speed and reduce delays.
Also read: ITR filing 2026: How to file Income Tax Return online for AY 2026-27
The government body has also started to work on the new rules which are linked to the four labour codes notified by the Centre earlier this month. EPFO plans to reissue three major schemes under the updated legal structure, including the EPF Scheme 1952, Employees’ Deposit Linked Insurance Scheme 1976, and Employees’ Pension Scheme 1995. Officials said the revised rules will focus on simpler withdrawal norms and easier compliance for members.
