The Employees’ Provident Fund Organisation (EPFO) will be changing the pension amounts under the EPS-95 scheme by 2025 and the new system will be a centralized one through which the employers and EPFO field offices will manage the process. To be able to enjoy the increased pension, the records of the pensioners and employees must be precise.
What’s Changing in EPFO Pension Rules?
In a landmark decision, EPFO is contemplating raising the minimum pension amount from ₹1,000 to ₹2,500 per month, plus:
- Revision of salary limit: From ₹15,000 to ₹25,000 for pension
- Increase of employer contribution: From ₹1,250 to ₹2,083 per month
- Pension processing digitally: Via EPFO’s Centralized Pension Payment System (CPPS)
The objective of these reforms is to enhance the retirement benefits of more than 6.5 crore EPFO members, particularly the private sector workers.
Who Will Update Your Pension Details?
Updating of the pension records is a job for the employers and EPFO field offices. Here is how it works:
- Employers are required to report salary and contribution information to the EPFO
- The EPFO offices verify and process pension changes
- The pensioners are to make sure that their KYC, Aadhaar, and UAN information is current and linked
- To eliminate delays and mismatches, EPFO has also made the Form 13 and Form 19 procedures less difficult.
How It Affects Common People
The pension increase will aid:
- pensioners of EPS-95, particularly those who get the minimum pension
- workers retired from private sectors, who usually have no other source of income during retirement
- next retirees, as the higher caps on salary and contributions will lead to better long-term payouts
This change is of great importance for low-wage workers in small-scale industries who bank on EPFO pensions after retirement.
Expert Opinions
This decision made by EPFO has been endorsed by policy analysts. “The pension hike is a necessary and timely correction. The key to preventing benefit leakage is the accurate updating of records,” says Rajesh Malhotra, a retirement policy consultant.
In addition to that, the experts are urging the pensioners to regularly monitor their EPFO accounts and reach out to employers if they encounter any discrepancies.
Conclusion
The EPFO pension increase of 2025, while large, will result in much lower timeliness on the part of employers and EPFO offices, making it harder for them to be not dependent on the latter to be financially secured. It’s, thus, the duty of the pensioners to validate their particulars in an engaging manner and gain access to the revised benefits promptly by being updated through the EPFO portal.
