EPFO reforms: From withdrawal to final settlement, 5 big EPFO changes announced in 2025

The Employees Provident Fund Organisation (EPFO) has announced many reforms this year, from EPFO 3.0 to measures aimed at reducing final PF settlement rejections. The PF organisation has announced big changes to enhance ease-of-use for its members, simplifying withdrawals and strengthening the entire retirement savings process.

Withdrawal framework

Members will not have to specify any reason under the Special Circumstances category. Previously, beneficiaries had to clarify the reasons for partial withdrawals, which often led to rejections and grievances.

EPFO members will now be able to withdraw up to 100% of the eligible balance in the Provident Fund, including both employee and employer shares. The Central Board of Trustees (CBT) has also increased the withdrawal limits, allowing up to 10 withdrawals for education and 5 for marriage.

Moreover, it has standardised the requirement of minimum service to 12 months for all partial withdrawals. Read about all the changes in the withdrawal system here.

Job transfers

Previously, transfers remained pending and were delayed as the paperwork often got stuck with the previous employer. This step eliminates the paperwork to a great extent.

If your UAN is activated and seeded, and KYC is fully complete, your PF transfer will be automatically triggered when you switch jobs and receive your first salary from the new employer.

Digital advancements

Under the new version of EPFO, claim processing will be enhanced with the introduction of auto-claim settlement, enabling quicker access to funds when needed. Members will also be able to make corrections to their details online through OTP verification, eliminating the current time-consuming procedure.

Final PF settlements

“Instances of rejecting the final Provident Fund settlement claims citing various reasons of short/non-remittance of contributions by employers for certain periods or non-transfer of previous PF account/past accumulations, etc. have been noticed,” the EPFO said in a circular in September.

All cases of part payment should be entered in the register of part payment and should be reviewed every month, the EPFO said, adding that action should be taken by the office to effect further payment without insisting on a fresh claim from the claimants whenever the amount is available for making payments.

Auto-settlement

"Another People-Centric Move under the Modi Government! EPFO enhances Auto-Settlement Limit for Advance Claims from ₹1 Lakh to ₹5 Lakh, with fast-track disbursal now within 72 hours," Union Labour and Employment Minister Mansukh Mandaviya said in a post on X earlier this year.

Through auto-settlement, claims up to ₹5 lakh will be processed automatically without any human intervention, ensuring efficiency and transparency.

The EPFO has introduced many other reforms, including Passbook Lite, a single-login portal and easier access to Transfer Certificates (Annexure K), among other things.

It has also launched a campaign to include salaried individuals who were excluded from EPF benefits by their employer between 2017 and 2025, the Employees' Enrolment Campaign, 2025, that commenced on November 1.

These reforms are expected to benefit nearly 8 crore active subscribers under the PF organisation, making retirement savings easier and simpler for them. These changes are aimed at making EPF services faster, smoother, technologically advanced and efficient.