The Employees’ Provident Fund Organization (EPFO) has announced several important changes in 2025, which will affect millions of employed people. These new rules will be more convenient and beneficial for PF account holders. The main objective of these changes is to help PF account holders manage their retirement funds in a better way.
These new rules will benefit private sector employees as well as government employees. Let us know what changes are going to happen in the EPFO rules in 2025 and how they will affect you.
EPFO Rules Change 2025: Major changes
Overview of EPFO New Rules 2025
| shift | Description |
| PF withdrawal from ATM | 24×7 PF withdrawal facility |
| Change in employee contribution limit | Contribution allowed based on actual salary |
| increase in equity investment | Reinvestment of ETF redemption proceeds |
| Centralized Pension Payment System | Pension withdrawal from any bank branch |
| IT system upgrade | Fast and transparent claim settlement |
| Higher pension deadline | Last date for employers to upload salary details |
PF withdrawal facility from ATM
Making a major change, EPFO has decided to issue ATM cards for its members. With this card, members will be able to withdraw money from their PF account 24 hours. This facility is expected to be operational in the financial year 2025-26. This will give members quick and easy access to their funds.
Benefit:
- 24×7 money withdrawal facility
- Fast and easy withdrawal process
- Time saving (currently takes 7-10 days)
Change in employee contribution limit
Currently, employees deposit 12% of their basic salary in the EPF account. But now the government is considering allowing contributions based on actual salary instead of the limit of Rs 15,000 set by EPFO.
Effect:
- Opportunity to accumulate a large retirement fund
- Possibility of getting more pension every month
increase in equity investment
EPFO is now considering reinvesting a part of the profits from exchange traded funds (ETFs) in the stock market and other assets. This step will help in increasing returns.
Benefit:
- High return potential
- diversified investment portfolio
Centralized Pension Payment System (CPPS)
Labor and Employment Minister Mansukh Mandaviya approved the Centralized Pension Payment System (CPPS) in September 2024. This system will come into effect from January 1, 2025.
major features:
- 7.8 million Employees Pension Scheme members will benefit
- Pension withdrawal facility from any bank branch in India
IT system upgrade
EPFO is upgrading its IT infrastructure. The upgrade is expected to be completed by June 2025.
Benefit:
- Deposit withdrawals with minimal human intervention
- Fast Claim Settlement
- increased transparency
- Reduction in fraud cases
Higher pension deadline
EPFO has set the last date for employers to upload salary details of employees.
Important Dates:
- Last date for uploading salary details: January 31, 2025
- Date for submission of clarifications sought by EPFO: January 15, 2025
Effect of EPFO new rules 2025
Improving retirement planning
The new rules will provide better options to PF account holders to manage their retirement funds better. With the ability to contribute more and invest in equity, account holders will be able to save more for their future.
increase financial security
The new ATM withdrawal facility and ease of pension withdrawal will provide account holders quick access to their funds in emergency situations. This will increase their financial security.
transparency in process
The upgraded IT systems will make the claims and withdrawal process faster and more transparent. This will reduce fraud and increase the confidence of account holders.
EPFO New Rules 2025: Additional Information
Uploading check leaf image is not mandatory
EPFO has relaxed the requirement of uploading check leaf image and attested bank passbook for certain eligible cases. This will speed up settlement of online claims and reduce the number of rejected claims.
New rule for EPF death claim
In cases of death, physical claims will be allowed to be processed without Aadhaar seeding. However, this is a temporary measure and will be permitted only with due approval of the OIC.
New rules for UPI payments
From January 1, 2025, the Reserve Bank will enable full-KYC Unified Payments Interface (UPI) payments for prepaid payment instruments (PPIs). This will allow PPI wallet holders to transact through third-party UPI applications.
Changes in RuPay Credit Card Lounge Access
From January 1, 2025, new rules for airport lounge access will be applicable for RuPay credit cardholders. The updated policy will have tier-based spending criteria for exclusive airport lounge access.
Disclaimer
This article is for informational purposes only. Although EPFO has announced these changes, some rules are still in the proposed stage and may be subject to change. For accurate and updated information please visit the official website of EPFO or contact your employer. Always consult a qualified financial advisor before making any financial decisions.
