The Employees’ Provident Fund Organisation (EPFO) has introduced significant changes to the withdrawal and pension rules under the Employees’ Pension Scheme (EPS) and Employees’ Provident Fund (EPF). These updates came into effect on 13 October 2025 and are aimed at simplifying processes, boosting digital usage, and enhancing long-term pension security.
What has changed for EPS members?
The latest amendments focus on withdrawal conditions, digital pension payments, and long-term pension benefits. The reforms are structured to discourage premature pension withdrawal and encourage members to retain benefits under the EPS scheme.
5 Major Changes in EPS Rules
1. EPS withdrawal allowed only after 36 months
Earlier, EPS funds could be withdrawn after 2 months of unemployment. As per the new rules, members can withdraw EPS money only after 36 months (3 years) of leaving employment.
This rule promotes continuity in the pension scheme and supports long-term retirement planning rather than short-term withdrawals.
2. Proposal to increase minimum pension under EPS
The current minimum monthly pension under EPS-95 is ₹1,000, unchanged for over a decade. A review of this amount is underway and recommendations for increasing the minimum pension have already been submitted.
If approved, the revised pension may offer better financial stability to pensioners in the near future.
3. Fully digital pension disbursement system
A new Centralised Pension Payment System (CPPS) has been introduced. With this system:
- Pension can be received from any bank branch across India
- No need for pension transfer during relocation
- Faster and more transparent pension credit
This step marks a major push toward a fully digital pension system.
4. Clarification on pension for higher salary contributors
A clear provision has now been introduced for those who contributed to EPS based on their higher actual salary. Members whose additional contributions were accepted by EPFO are now eligible for a higher pension as per recent guidelines.
5. EPS-95 scheme under review
The EPFO and Ministry of Labour have initiated a detailed review of the EPS-95 pension structure. Areas under consideration include:
- Pension calculation formula
- Contribution ratio
- Benefit enhancement
- Long-term sustainability
This review may lead to structural reforms in future.
What EPS members should focus on
To make the most of these changes:
- Keep UAN and KYC details updated on EPFO records
- Check eligibility and understand new rules before making withdrawals
- Avoid full withdrawal of pension to retain long-term retirement benefits
- Use the EPFO portal or Unified Mobile App for services
- Stay informed about upcoming pension revisions
Final Thoughts
The latest EPFO updates aim to modernise the pension framework while strengthening social security for employees covered under EPS. By encouraging long-term participation, enabling seamless digital access, and reviewing pension benefits, these reforms reflect changing workforce needs in a growing economy.
For members planning their retirement strategy, staying updated with these rules can ensure better financial planning and pension continuity.