EPFO Alert: What’s New In Pension | EPFO Pension Rules Updated: 5 Major Changes For Account Holders

Summary

The Employees' Provident Fund Organization (EPFO) has introduced significant updates to the Employees' Pension Scheme (EPS), effective October 13, 2025. Key changes include a 36-month withdrawal requirement, higher pension eligibility based on actual salary contributions, and the launch of a centralized pension payment system. The reforms aim to promote long-term benefits, transparency, and digital convenience. A proposed increase in the minimum pension is also under review. Employees are advised to keep their UAN and KYC details updated and to avoid withdrawing their full EPS balance to retain pension security. These updates reflect a modern, secure, and efficient system for pension management.

Takeaways

• 📅 Effective October 13, 2025, EPFO has introduced major changes to pension rules affecting EPS account holders.
• 💼 EPS withdrawals now require a minimum of 36 months after leaving a job, up from the previous 2-month rule.
• 🕒 The new withdrawal rule aims to promote long-term participation and pension benefits for employees.
• 💰 The minimum pension under the EPS-95 scheme, currently ₹1,000 per month, is under review for a potential increase.
• 🏦 EPFO has launched the Centralized Pension Payment System (CPPS) to enable pension payments from any bank branch nationwide.
• ⚡ CPPS ensures faster, safer, and fully digital pension transactions for all pensioners.
• 📈 Employees whose higher salary contributions were accepted by EPFO are now eligible for higher pension benefits following court rulings.
• 📊 EPFO and the Ministry of Labor are conducting a comprehensive review of EPS-95, including pension formulas, contribution rates, and benefit calculations.
• 🔒 The reforms focus on making the pension system more digital, transparent, secure, and suited to modern economic conditions.
• 🧾 EPS account holders are advised to keep UAN and KYC details updated, review withdrawal rules carefully, and use the EPFO portal or app for digital services.
• 🧓 Overall, these reforms aim to simplify processes, reduce hassles, and strengthen long-term pension security for India’s modern workforce.

Q & A

What major change has the Employees' Provident Fund Organisation (EPFO) introduced regarding EPS withdrawals?

EPFO now requires employees to wait for 36 months before they can withdraw from the Employees’ Pension Scheme (EPS). Previously, withdrawals were allowed after just 2 months of leaving a job.

Why did EPFO extend the EPS withdrawal period from 2 months to 36 months?

The change is intended to encourage members to stay invested in the pension scheme longer, ensuring they receive long-term pension benefits instead of short-term withdrawals.

What is the current minimum pension under the EPS-95 scheme, and what is being reviewed?

The current minimum pension is ₹1,000 per month. However, the Parliamentary Standing Committee on Labor has recommended an increase, and the final decision is still pending.

What new digital system has EPFO launched for pension payments?

EPFO has launched the Centralized Pension Payment System (CPPS), which allows pensioners to receive payments from any bank branch, regardless of where their pension payment order was issued.

How does the CPPS system benefit pensioners?

The CPPS system ensures faster, safer, and fully digital pension transactions, enhancing convenience and transparency for retirees.

What recent change affects employees contributing on their actual salary?

Employees whose higher salary contributions were accepted by EPFO are now eligible for a higher pension, following recent court rulings on pension entitlement calculations.

What broader review has EPFO and the Ministry of Labor initiated?

They have started a comprehensive review of the EPS-95 scheme to reassess the pension formula, contribution rates, and benefit calculations in line with current economic conditions and cost of living.

What are financial experts saying about these pension reforms?

Experts believe the reforms are in the best interest of employees, as they promote long-term savings, streamline digital processes, and increase transparency and security within the pension system.

What should EPS account holders do in light of these new rules?

Account holders should keep their UAN and KYC details updated, review withdrawal rules carefully, avoid withdrawing their full EPS balance, and use the EPFO portal or mobile app instead of agents.

What is the overall goal of EPFO’s new pension reforms?

The reforms aim to modernize the pension system by making it more digital, convenient, and secure while strengthening long-term pension benefits for the modern workforce.

When did these new EPFO pension rules take effect?

The new rules became effective on October 13, 2025.

How can members ensure they benefit from the updated EPS policies?

Members should stay informed about changes, maintain accurate records on the EPFO platform, and plan their retirement with a long-term view to maximize pension benefits.