The Employees’ Provident Fund Organisation (EPFO) has approved major reforms aimed at simplifying fund withdrawals and enhancing pension benefits. By merging 13 provisions into three, expanding access to employer contributions, and proposing a ₹7,500 minimum pension, the move strengthens India’s social security framework for millions of salaried workers.
In a significant step toward improving retirement security and ease of access for Indian workers, the EPFO has rolled out a series of reforms during its 238th Central Board of Trustees meeting. These changes are designed to streamline operations, reduce procedural hurdles, and offer more inclusive financial support.
Key Highlights:
Simplified Withdrawal Categories:
Thirteen separate withdrawal provisions have been consolidated into three broad categories:
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Essential Needs (including illness, education, and marriage)
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Housing Requirements
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Special Circumstances
Broader Access to Funds:
Members can now withdraw up to 75 percent of their total EPF balance, which includes both employee and employer contributions along with accrued interest.
Minimum Pension Proposal:
A proposal to set a ₹7,500 monthly minimum pension under EPS-95 is in its final stages, addressing long-standing concerns about low pension payouts.
Operational Enhancements:
Automation and streamlined eligibility norms are expected to reduce documentation, speed up processing, and minimize rejection rates.
Sources: Times of India, Business Today, Artyz.in