The Employees’ Provident Fund Organisation (EPFO) has announced significant changes to its guidelines and policies for its millions of subscribers. Most of these changes are expected to take effect from the new year. The retirement fund body is planning to introduce several new facilities for its subscribers.
The objective of these new rules is to offer greater convenience to PF account holders and enable them to manage their retirement funds more effectively. These changes aim to benefit both private-sector and government employees. Let’s explore these new rules in detail.
5 New EPFO Rules for PF Accounts in 2025
Facility to Withdraw PF Money via ATM
EPFO has introduced a new facility that will allow members to withdraw PF money through ATMs. This service, expected to be available in the financial year 2025-26, will provide 24/7 access to funds, offering great convenience to subscribers. Currently, members have to wait 7 to 10 days for their PF funds to be transferred to their bank accounts, but this new facility will save time and make the process much faster.
Changes to Employee’s Contribution Limit
In a significant change, EPFO plans to modify the contribution limit for employees. Currently, employees contribute 12% of their basic salary to their EPF accounts every month, with a cap of ₹15,000. The government is considering allowing employees to contribute based on their actual salary, which could lead to higher contributions and a larger retirement fund, benefiting employees with higher pensions.
EPFO stands firm with you for a lifetime. In 2025, embrace your journey of life with the lifelong pension plan of EPFO under the Employees’ Pension Scheme, 1995.
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EPFO IT System Upgrade
EPFO is upgrading its IT infrastructure, aimed at improving the efficiency and speed of PF claim processing. This upgrade, expected to be completed by June 2025, will allow quicker settlements of claims, enhance transparency, and help reduce fraud cases, ultimately benefiting all members.
Facility to Invest in Equity
EPFO is exploring the option of allowing members to invest in equity. This new investment facility will enable PF account holders to manage their funds more effectively, potentially earning higher returns than traditional investment options.
Simplified Pension Withdrawal Process
EPFO is also making significant changes to the pension withdrawal process. Under the new rule, pensioners will be able to withdraw their pensions from any bank in the country without requiring additional verification. This will provide greater convenience and save time for pensioners, making it easier to access their benefits.