The Employees’ Provident Fund Organisation (EPFO) has announced some major changes in guidelines and policies for its crores of members. Most of these changes are likely to be effective in the new year. The retirement fund body is set to introduce many new facilities for its subscribers.

The primary objective of these new rules is to provide greater convenience to PF account holders and help them manage their retirement funds more effectively. Both private sector employees and government employees will benefit from these changes. Let’s take a closer look at these new rules.

EPFO New Rules 2025: 5 major changes for PF accounts

Facility to withdraw PF money from ATM

In a major revamp in services for members, the EPFO has decided to issue an ATM card that will facilitate 24/7 fund withdrawal for subscribers. This ATM withdrawal facility is expected to be rolled out in the Financial Year 2025-26.

With the new guidelines in place subscribers will experience a quick and easy fund withdrawal process. Other benefits include saving of a lot of time for members as currently they wait for around 7 to 10 days for receiving the PF money in their bank account.

Also read: You will be able to withdraw PF money from ATM! Major EPFO services revamp on the cards

Change in employee’s contribution limit

Another major change will be the removal of the EPF contribution cap for employees. Currently, employees contribute 12% of their basic salary to the EPF account every month. However, the government is considering allowing employees to contribute based on their actual salary rather than the EPFO-fixed Rs 15,000.

Once this policy is implemented, employees will be able to accumulate a larger fund on retirement and get a higher pension every month.

EPFO IT system upgrade

EPFO is upgrading its IT infrastructure, which will allow PF claimants and beneficiaries to withdraw their deposits with minimal human intervention. This upgrade is expected to be completed by June 2025. Once the IT infrastructure is upgraded, members will experience faster settlement of claims. Besides, there will be increased transparency and less fraud cases.

Facility to invest in equity

The EPFO is considering allowing its members to invest in equities beyond Exchange-Traded Funds (ETFs). This will provide PF account holders with the option to manage their funds more effectively. If the retirement fund body allows direct equity investment, members can expect higher returns and it will also lead to portfolio diversification for members.

Ease of pension withdrawal

EPFO is making significant changes for pensioners. Under the new rule, pensioners will be able to withdraw their pension from any bank in the country, without requiring additional verification. This move will lead to greater convenience for members in terms of pension withdrawal and save a lot of time as they will enjoy the flexibility to withdraw pension from any bank.

Also read: EPFO: To what extent minimum pension under EPS is likely to be increased and by what time? Govt’s response

EPFO New Rules 2025: At a Glance

Impact of EPFO New Rules 2025:

These new rules will significantly benefit PF account holders. Here’s how:

Improvement in retirement planning

The new rules will provide PF account holders with better options to manage their retirement funds. With the ability to contribute more and invest in equities, account holders can save more for their future.

Increased financial security

The new ATM withdrawal facility and the ease of pension withdrawal will offer account holders quick access to their funds in emergencies, thereby enhancing their financial security.

Transparency in the process

The upgraded IT systems will make the claims and withdrawal process faster and more transparent, reducing fraud and boosting account holders’ confidence.