2025 has ushered in significant changes for private sector workers in India. The EPFO (Employees’ Provident Fund Organisation) has rolled out new regulations that promise a substantial boost in both salaries and pensions. The government is looking to raise the wage ceiling from Rs 15,000 to Rs 21,000 under the EPS-95 (Employees’ Pension Scheme 1995). Additionally, there’s a push to hike the minimum pension from Rs 1,000 to Rs 7,500.

 

The main goal behind these updates is to enhance the financial security of employees amid rising inflation. The new EPFO rules for 2025 include features like the ability to withdraw funds from your PF account via ATM, receive pensions from any bank, and the removal of contribution limits. All these changes aim to simplify retirement planning.

 

EPFO New Rules 2025: Quick Overview

Parameters Description

Scheme Name EPS-95 (Employees’ Pension Scheme 1995)

Current Salary Cap Rs 15,000

Proposed Limit for 2025 Rs 21,000

Minimum Pension Rs 1,000 (Demand: Rs 7,500)

Maximum Pension Rs 7,500 (up to Rs 10,050 with new limit)

 

Contribution (%) Employee: 12%, Employer: 8.33% EPS + 3.67% EPF

Key Benefits Big pension, PF withdrawals via ATM, pension accessible from any bank

 

EPFO Salary Ceiling Increase 2025: Salary Limit Boost

 

The EPFO is set to raise the basic salary cap from Rs 15,000 to Rs 21,000, which will directly affect employees’ monthly pensions:

 

Pension Calculation: (Pensionable salary × years of service) ÷ 70

Example: ₹21,000 × 35 years ÷ 70 = ₹10,050 per month (34% more than the current ₹7,500).

Moreover:

The employer’s contribution will also rise (8.33% will now apply to Rs 21,000).

With the increased deposits in the PF account, the retirement fund will grow as well.

 

EPS-95 Pension Hike Request: Push for Minimum Pension of Rs 7,500

 

On January 10, 2025, EPS-95 pensioners had a meeting with Finance Minister Nirmala Sitharaman, where they urged for the minimum pension to be raised to Rs 7,500. Here are the main points:

 

Current scenario: There are 36.60 lakh pensioners receiving less than Rs 1,000.

 

Reason for the request: Many are struggling to make ends meet without the Dearness Allowance (DA).

 

Opposition: While trade unions suggest a pension of Rs 5,000, pensioners feel that’s not enough.

 

EPFO New Rules 2025: 5 Major Updates

 

1. PF Withdrawal via ATM

Starting in 2025-26, EPFO members will have the option to withdraw their PF funds using ATM cards, which will be handy in emergencies.

 

2. Contribution Limit Lifted

Employees can now contribute up to 12% of their actual salary to the EPF, instead of the previous cap of ₹15,000.

 

3. Centralized Pension Payment System (CPPS)

From January 1, 2025, pensions will be accessible from any bank, eliminating the need for PPO transfers.

 

4. Equity Investment Option

EPFO members will have the chance to invest a portion of their funds directly in the stock market, moving beyond just ETFs.

 

5. IT System Overhaul

A new IT system for EPFO is set to launch by June 2025, streamlining the claims process and enhancing transparency.

 

Types of Pensions:

– Normal Pension: Available at age 58.

– Famine Pension: 4% deduction per year if claimed before age 50.

– Disability Pension: For employees with permanent disabilities.

– Widow/Widower Pension: Provided to the spouse after the member’s death.

 

How to Apply for EPFO Pension:

1. Complete Form 10D (available on the EPFO portal or at the office).

2. Submit necessary documents:

– Aadhar card

– Bank account details

– Service Certificate

3. Receive your PPO (Pension Payment Order).

4. Your pension will start being deposited into your bank account.