The Employees’ Provident Fund Organisation (EPFO) has recently announced big changes in the Provident Fund (PF) rules. These updates are aimed at making PF accounts more transparent, accessible, and hassle-free for employees across India. Let’s look at the major highlights
Higher Interest Rate on PF Balances
From 1st September 2025, EPFO will start crediting the approved 2024-25 interest directly into employees’ PF accounts. This will not only help employees track their balances more accurately but also ensure faster growth of their retirement savings.
Faster Online PF Withdrawals
EPFO has simplified the online withdrawal process. Now, claims for purposes like medical emergencies, marriage, education, or home construction will be settled within 72 hours (up to a limit of ₹1 Lakh). This makes PF funds more useful in times of urgent financial need.
| Purpose | Settlement Time | Maximum Limit |
|---|---|---|
| Medical Emergency | 72 hours | ₹1 Lakh |
| Marriage | 72 hours | ₹1 Lakh |
| Education | 72 hours | ₹1 Lakh |
| House Building | 72 hours | ₹1 Lakh |
EPS-95 Pension Recalculation
Good news for pensioners! Under the Employees’ Pension Scheme (EPS-1995), pensions will now be recalculated. Eligible retirees will get higher pension amounts, giving them better financial security after retirement.
Aadhaar-Based UAN Generation
From 1st August 2025, UAN (Universal Account Number) generation will be linked with Aadhaar-based Face Authentication Technology (FAT) through the UMANG App. This will ensure:
- Faster and error-free UAN creation
- Better digital security
- Improved access to EPFO services
Enhanced Death Relief Fund Ex-Gratia
In case of an employee’s unfortunate death during service, EPFO has increased the Death Relief Fund ex-gratia amount from ₹8.8 Lakh to ₹15 Lakh. This step will provide stronger financial support to the nominee or legal heirs of the employee.
| Benefit | Earlier Amount | New Amount |
|---|---|---|
| Death Relief Fund | ₹8,80,000 | ₹15,00,000 |
Automatic PF Account Transfer
Switching jobs used to make PF transfer a big headache. Now, EPFO has introduced computer-based automation to ensure automatic PF transfer whenever an employee changes jobs. This removes human intervention and makes the process seamless.
Conclusion
The new EPFO PF rules 2025 are a major step toward making the Provident Fund system more transparent, employee-friendly, and future-ready. With higher interest rates, quicker withdrawals, pension recalculations, Aadhaar-based UAN, enhanced death relief, and automated PF transfers – these changes will surely benefit millions of employees and pensioners across India.