EPFO New Rules updates

EPFO  Office

EPFO stands for the Employees' Provident Fund Organisation, a statutory body under the Ministry of Labour and Employment, Government of India, responsible for managing and regulating provident funds in India, including the Employees' Provident Fund (EPF) scheme, and other related social security schem.  The Employees' Provident Fund Organisation (EPFO) has introduced several significant changes in 2025 to enhance the efficiency and accessibility of its services for members. It manages the Employees' Provident Fund (EPF), Pension Scheme (EPS), and Insurance Scheme (EDLI) for employees in India.

Key Functions of EPFO:

Ø  Provident Fund (PF) Management – It collects and manages contributions from employees and employers to ensure savings for retirement.

Ø  Pension Scheme (EPS) – Provides pension benefits to employees after retirement.

Ø  Insurance Scheme (EDLI) – Offers life insurance coverage to employees.

Ø  PF Withdrawals & Transfers – Employees can withdraw or transfer their PF when changing jobs.

Ø  Regulation & Compliance – Ensures employers comply with PF laws.

Eligibility:

• Mandatory for organizations with 20 or more employees.
• Applicable to employees earning a basic salary of up to ₹15,000 per month (can be voluntarily extended beyond this limit).

Employee & Employer Contributions:

• Employee: 12% of basic salary + DA.
• Employer: 12% (8.33% to EPS, 3.67% to EPF).

key updates:​

1. Auto-Settlement Limit Increase

EPFO has raised the auto-settlement limit for advance claims from ₹1 lakh to ₹5 lakh. This enhancement aims to provide greater financial flexibility to its 7.5 crore members and improve service efficiency

 2. Provident Fund Withdrawals via UPI and ATMs

By the end of May or June 2025, EPFO plans to enable members to withdraw their provident funds directly using Unified Payments Interface (UPI) and Automated Teller Machines (ATMs). This initiative is set to simplify the withdrawal process and offer greater convenience

3. Removal of Employee Contribution Limit

The previous cap on employee contributions, which was set at a fixed limit of ₹15,000, has been eliminated. Employees can now contribute based on their actual salary, allowing for the accumulation of a larger retirement corpus and potentially increasing their monthly pension. ​

 4. Automatic Transfer of PF Balances

Starting from April 1, 2024, EPFO introduced the automatic transfer of old Provident Fund (PF) balances to a new employer when an individual changes jobs. This eliminates the need for manual transfer requests, streamlining the process for employees.

5. Simplified Joint Declaration Process

EPFO has issued a new circular simplifying the Joint Declaration process, which is used for correcting member details. The updated guidelines replace the previous Standard Operating Procedure (SOP Version 3.0) issued on July 31, 2024, and aim to make the process more efficient.

These updates reflect EPFO's commitment to enhancing user experience, ensuring financial security, and adapting to the evolving needs of its members.