EPF Pension: Big news for EPFO members. EPFO makes various changes from time to time for the benefit of the employees. In the past few years, EPFO has brought several changes, due to which withdrawal of PF money has become much easier. In the meantime, the government is considering increasing the minimum pension from Rs. 1,000 to Rs. 7,500 under EPS-95.
EPF members contribute 12 percent of their basic salary to the Provident Fund and the employer contributes an equal amount. Of the employer’s contribution, 8.33 percent goes to the Employees’ Pension Scheme (EPS), while 3.67 percent goes to the EPF scheme.
Ahead of Budget 2025, a delegation of retired EPS-95 employees met Union Finance Minister Nirmala Sitharaman and presented their long-standing demands. They demanded a minimum pension of Rs 7,500 per month along with Dearness Allowance (DA). The EPS-95 National Movement Committee has informed that the Finance Minister has assured them that this demand will be considered. Now let us know how much pension is available under EPFO as per the current formula.
The amount of pension you will receive each month depends on your pensionable salary and length of service. This calculation is based on your average basic salary and the average of your dearness allowance for the last 12 months. But there is another important rule here. If your contribution falls within the current salary limit of Rs 15,000, then even if an employee’s basic salary and DA are higher, the pension will be calculated based on Rs 15,000.
Will there be a big jump in pension?
According to sources, the government is considering a proposal to increase the minimum pension under the Employees’ Pension Scheme (EPS-95) from the current Rs 1,000 to Rs 7,500. Following a long-standing demand from labor organizations and the recommendations of a parliamentary committee, hopes for a final decision have now increased.
PF money can be withdrawn from ATM
In addition to pensions, the EPFO is now working to make it easier for its members to access funds. ATM-based PF withdrawals may soon be introduced, allowing members to withdraw their funds without delay if needed.
Additionally, a proposal to provide an interest rate of 8.25% on the accounts has been submitted to the Finance Ministry for approval. Once approved, the interest amount will be credited directly to subscribers’ accounts.
Leveraging digital technology and automation, the EPFO has accelerated claim settlements. In the financial year 2025-26, the organization settled 83.1 million claims, significantly higher than the previous year’s 60.1 million. Approximately 71% of advance claims are now settled within three days.