In a major update in rules, the Employees’ Provident Fund Organisation (EPFO) recently revamped fund withdrawal guidelines for members. This will impact both EPF (provident fund) and EPS (pension fund) withdrawals. These rules were made effective from October 13, 2025.
The EPFO claims that these new rules will simplify the process, promote digital PF transactions, and ensure the long-term security of the Employee’s Pension Scheme (EPS).
What has the EPFO changed for EPS members?
The EPFO recently updated the conditions related to partial withdrawals of the PF and EPS money. The rules are now simpler and more digital than before, allowing members to easily manage their accounts according to their needs.
5 major changes related to EPS
- EPS withdrawal now requires 36 months
EPFO has made a major amendment to the rules regarding EPS withdrawals. Now, if an employee leaves their job or becomes unemployed, they will be able to withdraw EPS funds only after completing 36 months (3 years).
Previously, this period was only 2 months, leading many people to withdraw their pension in case they lost their job. The new rule, the government says, is aimed at encouraging members to stay in the scheme for a longer period and receive long-term benefits in the form of a pension.
- Preparations to increase minimum pension amount under EPS
The current minimum pension under EPS-95 is Rs 1,000 per month, which was fixed around 11 years ago. Now, the Parliamentary Standing Committee on Labour is said to have reviewed this amount and recommended an increase. While this decision is still under consideration, it is expected that an increase in the minimum pension may be announced in the coming months. This could provide some relief to retired employees.
- Pension payment system now fully digital
The EPFO has launched the Centralized Pension Payment System (CPPS) for EPS pensioners. Under this system, pensioners can now receive their pension from any bank branch, regardless of where the PPO (Pension Payment Order) was issued.
This change eliminates the pension transfer process and makes pension payments faster, secure and transparent.
- Recognition of the Right to Pension on higher salary
In line with recent court decisions, the EPFO has clarified that employees who have contributed to EPS based on their actual (higher) salary, and whose contributions have been accepted by the EPFO, will now be entitled to a higher pension.
This will provide relief to millions of employees who applied for a “higher pension” in previous years.
- Review and reform process of the EPS-95 scheme begins
The EPFO and the Ministry of Labour have indicated that a comprehensive review of the EPS-95 scheme will be completed soon. This will include a review of issues such as the pension formula, contribution rates, and benefit calculations.
Following this review, the scheme is likely to be updated to reflect current economic conditions and rising living costs.
What experts say
Financial experts believe that these changes are in the best interest of employees. Making the pension scheme long-term, balancing the digital claim process and withdrawal rules — this will not only increase transparency but also protect the pension fund.
What EPS account holders should do:
Keep your UAN number and KYC details updated.
Read the rules carefully before withdrawing.
Avoid withdrawing the entire amount to ensure pension benefits remain.
Wait for a year in case of unemployment.
Use the EPFO portal or mobile app to eliminate the need for an agent.
Summing up…
The new EPFO rules are tailored to the modern workforce — less hassle, more convenience and pension security. These reforms are expected to increase transparency in EPS and strengthen employee confidence. For those planning for retirement in the coming years, these changes will prove beneficial in the long run.