Big EPFO update: Minimum pension may rise 7.5 times, ATM withdrawals soon 
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Big EPFO update: Minimum pension may rise 7.5 times, ATM withdrawals soon

The government is mulling a sharp increase in the minimum pension under the Employees' Pension Scheme (EPS-95), say sources.

JJ News Desk

EPF subscribers may soon see big changes. The government is considering a sharp hike in the minimum pension, while EPFO is also working on allowing ATM withdrawals, thereby making access to money quicker and simpler.

PENSION HIKE UNDER DISCUSSION

The government is mulling a sharp increase in the minimum pension under the Employees’ Pension Scheme (EPS-95). The current minimum pension of Rs 1,000 may be raised to Rs 7,500, according to sources.

The demand for this increase has been gaining momentum, with labour unions strongly pushing for a revision. A parliamentary committee has also recommended raising the pension amount. A final decision is expected soon.

INTEREST RATE AND WITHDRAWAL RELIEF

Alongside pension changes, EPFO is likely to offer an interest rate of 8.25% to account holders. The proposal is currently awaiting approval from the Finance Ministry. Once cleared, the interest amount will be credited to subscribers’ accounts.

Another key change in the works is the introduction of ATM-based PF withdrawals. This move is expected to make accessing funds easier and quicker for members.

EPFO SETS NEW RECORD

EPFO has reported strong performance in claim settlements.

In the financial year 2025–26, it settled 8.31 crore claims, a significant rise from 6.01 crore claims in the previous year. Out of these, 5.51 crore claims were related to advance or partial withdrawals, showing increased usage of the facility by members.

The organisation has improved its processing speed through automation. Around 71.11% of advance claims were settled within three days, compared to 59.19% last year. There has also been a noticeable reduction in manual intervention.

DIGITAL PUSH SIMPLIFIES PROCESSES

Digital initiatives have made the process easier for users. As many as 6.68 crore claims were processed without the need to upload cheque images. Additionally, 1.59 crore accounts were linked to banks without employer approval. EPFO also auto-processed 70.55 lakh transfer claims, while 29.34 lakh members updated their details on their own.

In April 2026 alone, EPFO settled 61.03 lakh claims. Nearly 98.70% of these were processed within 20 days, showing improved efficiency.

NEW E-PRAAPTI PORTAL LAUNCHED

EPFO has also introduced a new platform called E-PRAAPTI to help activate inactive PF accounts. The portal allows users to link old accounts easily using Aadhaar-based access.

It will benefit those whose accounts are not linked with UAN. In the future, the facility may also be extended to users who do not have a Member ID.

Source: India Today

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