Major Relief for Employees and Pensioners, The Employees’ Provident Fund Organisation (EPFO) has proposed a major update for over 7.37 crore PF account holders and pensioners across India. The new reforms under review aim to provide higher interest rates on Provident Fund deposits and a significant hike in the minimum pension amount under the Employees’ Pension Scheme (EPS-95).
If approved by the Central Board of Trustees (CBT), these changes will directly benefit millions of employees in the organized sector, offering improved savings, better post-retirement income, and financial stability.
Higher Interest Rate Expected for FY 2024–25
| Financial Year | PF Interest Rate | Status |
|---|---|---|
| 2022–23 | 8.15% | Implemented |
| 2023–24 | 8.25% | Approved by Finance Ministry |
| 2024–25 (Expected) | 8.35% – 8.40% | Under Review |
As per reports, the EPFO is considering increasing the Provident Fund interest rate for FY 2024–25 to 8.35–8.40%, the highest in the last five years. The decision will likely be finalized in the next Central Board of Trustees (CBT) meeting scheduled for early 2025.
Once approved, the revised rate will be credited to employees’ PF accounts, providing higher annual returns and compounding benefits for long-term savings.
Minimum Pension Under EPS-95 to Rise
The Employees’ Pension Scheme (EPS-95) is also set for a major revision. Currently, the minimum pension under EPS stands at ₹1,000 per month, which has not been revised for nearly a decade.
EPFO is now planning to increase the minimum pension to ₹2,500–₹3,000 per month, benefitting over 6.7 million pensioners across the country.
Key Highlights of the Pension Update:
- Minimum pension likely to be raised up to ₹3,000/month.
- The proposal includes auto-revision every 3 years based on inflation.
- Spouse or family members will continue to receive survivor pension after the pensioner’s death.
This change will provide much-needed relief to low-income pensioners struggling with rising costs of living.
EPFO’s Focus on Digital Reforms
Apart from financial updates, EPFO is also implementing digital transformation initiatives to simplify account management and claims.
Major Updates Include:
✅ Faster Claim Settlements – PF withdrawal processing within 3 working days.
✅ Online Pension Tracking – Real-time pension balance visibility via UMANG App.
✅ Unified UAN Integration – Employees can now manage multiple PF accounts under one UAN.
✅ e-Nomination Facility – Family members can be added online for quick claim processing.
These reforms are part of EPFO’s vision to make PF and pension services fully digital, transparent, and user-friendly by the end of FY 2025.
Impact on PF Subscribers and Pensioners
Once implemented, the new updates will have a positive financial impact on both current employees and retirees.
| Category | Current Benefit | Proposed Benefit (2025) |
|---|---|---|
| PF Interest Rate | 8.25% | 8.35% – 8.40% |
| Minimum Pension | ₹1,000/month | ₹2,500 – ₹3,000/month |
| Claim Settlement Time | 10 days | 3 days |
| Digital UAN Access | Limited | Full-service Portal |
This means employees will earn more on their PF deposits, while pensioners will get higher monthly payouts, ensuring financial security after retirement.
Government’s Objective
The Ministry of Labour and Employment has stated that these reforms aim to strengthen India’s social security framework, improve the living standards of pensioners, and promote trust in EPFO’s management.
A senior EPFO official said,
“Our goal is to ensure faster service delivery, fair returns, and better pension coverage for all workers under the organized sector.”
How Employees Can Check PF & Pension Updates
- Visit the official EPFO website – https://www.epfindia.gov.in
- Log in using your UAN and password.
- Go to the ‘Member Passbook’ section to view balance and interest updates.
- Pensioners can use the UMANG App for checking pension credits and claim status.
A Win-Win for Employees and Retirees
The EPFO Update 2025 brings a wave of optimism for India’s workforce. With a possible interest rate hike and higher minimum pension, employees can expect better returns and financial comfort during retirement.
If approved in the upcoming meeting, this could mark one of the most employee-friendly reforms in recent years, benefiting over 7.37 crore members nationwide.
Disclaimer: This article is based on reports and government updates available as of 2025. Final details will be confirmed only after EPFO’s official notification. Please visit the EPFO website or contact your regional office for accurate information.