The Employees’ Provident Fund Organisation (EPFO) has introduced very crucial changes in the rules governing the Provident Fund (PF) accounts lately. These updates intend to bring convenience, transparency, and accessibility with respect to the PF across the workers of India. Here is an overview of some of the major changes.
Higher Interest Rate on PF Balances
With effect from 1st September 2025, the EPFO will be crediting interest approved for the year 2024-25 directly into employees’ PF accounts. With this arrangement, employees will have a better means of keeping an accurate watch on their account balances and also enjoy quicker growth of retirement savings.
Faster Online Withdrawal Claims
In a bid of having various withdrawal purposes enhanced towards immediate formalities, EPFO has revamped the process. Claims relating to white purposes such as medical emergencies, marriage, education, or house-building expenses will henceforth be settled within 72 hours, with a maximum limit of ₹1 Lakh. Hence, this upgrade will make the PF a bit more liquid in times of financial emergency .
Recalculation of EPS-95 Pension
Those who have gone for the Employees’ Pension Scheme (EPS) 1995 will have their pension amounts recalculated. The pension will be increased for eligible retirees to allow them a more secure financial base needed post-retirement.
From Henceforth, UAN Generation Will Be through Aadhaar
The employers will henceforth get an account generated at establishment registration in the EPFO for every establishment under Section 26 of the Act as amended by the Code on Social Security, 2020. The mandate shall be issued for generation of UAN through biometric authentication using the Face Authentication Technology (FAT) based on Aadhar on the UMANG App by the Employees, henceforth, from August 1, 2025. This digital approach becomes the option for obtaining UAN, easing generation, eliminating chances of error, and enhancing security, hereby facilitating greater access and greater efficiency for the EPFO services.
Enhanced Death Relief Fund Ex-Gratia
In a landmark order, an ex-gratia amount of ₹15,00,000 has been declared by EPFO under the Death Relief Fund, instead of ₹8,80,000, to ease the pain of the families of deceased employees . Such financial assistance shall be paid to the nominee or legal heirs of employees dying while in service with higher assistance during hard times .
Transfer of PF Account, Automatically
Earlier, if an employee changed jobs, they had to go through a lot of hassle with the PF transfer as it is one of the most abused procedures in India. Further streamlining this process and eliminating any human intervention, EPF has utilized computer automation, thus ensuring a smooth transition of PF accounts from existing employers to new ones.
Conclusion
EPFO has instituted these changes to make Provident Fund more convenient, transparent, and responsive to their employee clientele. In other words, providing more financial security through better back-up with the members will now become a bigger reality through digitization and streamlined processes at EPFO. Employees should get to know these changes so they can benefit fully from the enhanced services.