Big PF changes : In 2025, EPFO has introduced significant changes for its members, including simplified profile updates, a new PF account transfer process, and more. These offerings aim to streamline services and improve the overall experience for members.
The Employees Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment in India. It manages provident fund, pension and insurance schemes for millions of workers, ensuring financial security during retirement and unforeseen circumstances.
In 2025, EPFO introducing several significant changes to improve services and simplify processes for its members. Here are some of the major changes that EPFO members should recognise in 2025.
What is EPFO and why is it important for workers in India?
The Employees Provident Fund Organisation (EPFO) is an important social security body in India, established under the Employees Provident Fund and Miscellaneous Provisions Act, 1952. It works under the Ministry of Labour and Employment and manages various retirement benefits for employees in both the public and private sectors. EPFO manages the Employees Provident Fund (EPF), which is a mandatory savings scheme designed to ensure financial security for workers on retirement.
Under the Retirement Savings EPF Scheme, both employees and employers are required to deposit 12% of the employee’s basic salary and dearness allowance into the fund. This accumulation is an important source of retirement savings, which helps employees secure their financial future after they stop working.
Apart from retirement savings, the EPFO offers pension benefits through the Employee Pension Scheme (EPS), which ensures a monthly pension for employees after retirement. Further, it provides insurance coverage through the Employee Deposit Linked Insurance Scheme (EDLI), which provides financial support to the family of the employee in case of death.
Financial Defence in emergency situations EPF allows partial withdrawal for specific needs such as education, marriage or medical emergencies. This facility ensures that employees have access to funds during critical times without compromising their long-term savings.
Support for International Workers EPFO also offers its benefits to international workers from countries with which India has bilateral social security agreements. This inclusion helps migrants maintain their Social Security benefits while working abroad.
Promoting financial discipline encourages a culture of saving among EPFO employees by automatically deducting contributions from salary. This systematic approach helps individuals build substantial wealth over time without the need for large upfront investments.
Government Initiatives and Support The Government of India has launched various schemes linked to EPFO to encourage employment and encourage first time job seekers. For example, recent initiatives have provided financial incentives to employers to hire new employees under the EPF scheme, boosting job creation.
5 big PF changes in 2025: EPFO members should know
EPFO members should be aware of several significant changes in 2025 that will affect their provident fund management. Here are five key updates:
Simplified member profile update
Members can update personal details such as name, date of birth and marital status directly online without requiring employer verification. This change applies to members with Aadhaar-verified Universal Account Number (UAN) and is intended to drive the process of providing personal information.
Revised PF account transfer process
The process of transferring provident fund accounts while changing jobs has been simplified. Till January 15, 2025, members can transfer their PF accounts without requiring approval from their previous or current employers, provided certain criteria regarding UAN and Aadhaar linkage are met. This change has been made to minimise delays during job change.
Centralised Pension Payment System (CPPS)
CPPS has been introduced, through which pensioners can receive their payment from any bank branch in India. This system eliminates the need for pensioners to go to specialised banks for verification, thereby depositing the pension amount immediately upon issuance. This change facilitates more than 68 lakh pensioners.
Updated Joint Declaration Process
The EPFO has introduced new guidelines for the joint declaration process, which simplifies the process for both members and employers. The updated guidelines categorise members based on UAN generation dates and Aadhaar verification status, ensuring that requests are handled in a more efficient manner.
Higher Pension Directive Clarification
EPFO has issued clarification regarding processing of pension applications for eligible members for enhanced benefits under the Employees Pension Scheme.
