EPFO introduces new pension rules: 5 key changes every EPS member must know

The Employees’ Provident Fund Organisation (EPFO) has revised several rules for the Employees’ Pension Scheme (EPS) and Provident Fund (PF) withdrawals, effective from October 13, 2025. The new norms aim to simplify withdrawals, promote digital transactions, and ensure long-term pension security for employees.

1. EPS Withdrawal Allowed After 36 Months

EPFO has increased the waiting period for withdrawing pension funds. Earlier, employees could withdraw EPS money after 2 months of unemployment. Now, withdrawal is permitted only after 36 months. This change encourages members to stay invested longer and benefit from lifelong pension support.

2. Proposal to Raise Minimum Pension

The minimum pension under EPS-95 has remained ₹1,000 per month for over a decade. The government is now reviewing this amount, with the Parliamentary Standing Committee on Labour recommending an increase. If approved, this will bring much-needed relief to retirees.

3. Fully Digital Pension Payment System

A Centralised Pension Payment System (CPPS) has been launched to make pension payments faster and more transparent. Pensioners can now receive their pension from any bank branch, regardless of where their PPO (Pension Payment Order) was issued — eliminating transfer hassles.

4. Higher Pension on Actual Salary Recognised

EPFO has confirmed that employees who contributed to EPS based on their actual (higher) salary and whose contributions were accepted will be eligible for a higher pension. This clarification follows recent court rulings and benefits lakhs of employees awaiting confirmation.

5. Review of the EPS-95 Scheme Underway

The EPFO and the Ministry of Labour have begun a comprehensive review of the EPS-95 scheme. This includes revising the pension formula, contribution rates, and benefit calculations to align with current living costs and inflation.

Read More: EPFO Eases 'Part Withdrawal' Rules, Allowing Up to 100% of EPF Balance!

What EPS Members Should Do

• Keep UAN and KYC details updated.
• Read the new rules carefully before withdrawing funds.
• Avoid withdrawing the full amount to retain pension benefits.
• Use the EPFO portal or mobile app for transactions, and avoid intermediaries.

Conclusion

EPFO’s updated pension rules bring in a more digital, transparent, and employee-friendly system. By extending the withdrawal period and simplifying payments, these reforms promote long-term savings and pension security. For employees planning their retirement, the new rules pave the way for a safer financial future.

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