The Employees’ Provident Fund Organisation (EPFO) introduced several major changes during the year 2025 for the benefit and convenience of Provident Fund (PF) account holders. These measures are aimed at strengthening the financial security of members, simplifying processes, and providing members with more flexibility.
Removal of Employee Contribution Caps
Employee contribution to the EPF was previously 12% of basic pay. The cap on contribution has been removed by the new rules, allowing members to contribute a higher percentage of their actual salaries. It now allows members to accumulate a much greater corpus for retirement over the years.
Simplified PF Account Transfers
Transfer of PF accounts whenever there is a change in job has been made easy. In some applications of online transfer, the members can get the application processed without mandatory routing through former/current employers. This makes the entire process more member-friendly.
Enhanced Access to Pensions
With the introduction of the Centralized Pension Payment System (CPPS), pensioners can draw their pensions at any branch of a bank in India. This flexibility allows retirees to control their funds conveniently from whichever place they are.
Life Insurance Benefits Increase
Under the revised Employees’ Deposit Linked Insurance (EDLI) scheme, a minimum life insurance benefit of ₹50,000 shall be paid out if an EPF member dies without completing one year of continuous service. This liability improvement provides for the financial support of the members’ families in such unfortunate events to a greater extent.
Streamlining Updating
Members with Aadhaar-based Universal Account Numbers (UANs) can now directly change their personal details without additional documentary evidence. This change smooths the process of updating information and ensures accurate, up-to-date records of members.
Withdrawal Rules Clarified
The EPF has clarified the withdrawal rules for EPF withdrawal purposes. Members can withdraw up to 50% of their contribution after seven years of service for higher education or marriage. This is in addition to provisions for withdrawal in case of extreme unemployment, medical emergency, or the purchase of a home so that members can use their funds more freely.
Withdrawal Rules-Clarified
EPF withdrawals have received more clarity. Members can withdraw up to 50% of their contribution for costs associated with higher studies and marriage after seven years of service. Withdrawals have also been allowed for cases of unemployment, medical emergencies, and home purchase, thus giving members more freedom and flexibility in managing their funds.
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This reform corroborates the EPFO’s commitment to improving the benefits and services available to its members, which will promote an ever-secure and user-centered experience.