5 New EPFO Guidelines You Need to Know in 2025

This growth reflects not only expanding employment opportunities but also a greater awareness of employee benefits, supported by EPFO's proactive outreach efforts.

Despite EPFO's significance in ensuring the financial security of the members of the workforce, its subscribers have long faced challenges such as delays in fund transfers, rejected claims due to discrepancies in member details, and bureaucratic bottlenecks in accessing pensions.

However, EPFO has been actively working to enhance its operational efficiency.

From ongoing efforts to upgrade its IT systems to launching a Centralised Pension Payment System (CPPS), the organisation has introduced several reforms aimed at simplifying processes, reducing delays, and improving user experience.

In this article, we'll discuss 5 key EPFO guidelines you should know to make the most of subscriber benefits.

1. Joint Declaration

A Joint Declaration (JD) is a formal request submitted by an employee and their employer to correct discrepancies in personal details such as name, date of birth, or gender in EPFO records.

Ensuring accurate information is essential, as any errors can lead to complications during PF withdrawal. To simplify the process, EPFO issued a revised circular on January 16, 2025, replacing the previous Joint Declaration SOP Version 3.0 dated July 31, 2024.

The new guidelines introduce a more structured approach, categorising members based on their Aadhaar verification status and UAN generation date:

• Members with Universal Account Numbers (UAN) generated using Aadhaar from October 1, 2017, can submit JD requests online.

• Members with UANs created before October 1, 2017, but whose details (Name, Date of Birth, Gender) are Aadhaar-verified by UIDAI, can also submit JD requests online.

• JD requests for members whose UANs are not Aadhaar-verified, those without UANs, or claims related to deceased members must be submitted physically by the member/claimant.

To further simplify the process, wherever feasible, members can submit supporting documents via DigiLocker (or else upload them as a single PDF). EPFO plans to introduce the DigiLocker facility soon. However, if the employee can make the necessary corrections independently, document submission will not be required.

2. EPF Member Profile Updation

EPFO has simplified the process of updating member profiles to ensure the accuracy of member data.

Now, members with a UAN already validated through Aadhaar can update details (name, date of birth, gender, nationality, parents' names, marital status, etc.) themselves, without needing to upload any documents.

However, for UANs issued before October 1, 2017, updates will require employer certification.

On average, this will cut down the nearly 28-day delay taken by employers to approve JDs.

Currently, approximately 27% of member grievances are related to profile or KYC issues. With this revision to the JD functionality, a significant reduction in the number of such grievances is expected.

3. PF Transfer

EPFO has eliminated the requirement to route online transfer claims on the account of a change of jobs, through the previous or current employer, in most cases.

Under the revised system, it is expected that over 1.20 crore out of 1.30 crore total transfer claims (approximately 94%) will be directly forwarded to EPFO without employer intervention.

This simplification is expected to significantly reduce turnaround time for claim processing, as well as member grievances, as transfer-related issues currently account for 17% of total grievances.

Additionally, the revised procedure is expected to lessen claim rejections and ease the administrative burden on large employers who may struggle to approve a large volume of such cases.

4. Centralised Pension Payment System (CPPS)

With the implementation of CPPS, pensioners can now access their pensions easily from any bank, at any branch, across the country. This system removes the need for physical verification visits, simplifying the pension disbursement process.

While announcing the successful rollout of CPPS, Union Minister Dr Mansukh Mandaviya said, "CPPS is a testament to our commitment to modernising EPFO services and ensuring convenience, transparency, and efficiency for our pensioners. With this rollout, we are setting a new benchmark in pension service delivery, aligning with the vision of a tech-enabled and member-centric EPFO."

From January 2025 onwards, CPPS will also ensure nationwide pension disbursement without requiring the transfer of Pension Payment Orders (PPO) from one office to another, even if a pensioner relocates or changes their bank or branch.

This will provide significant relief to pensioners who return to their hometowns post-retirement.

5. PF Withdrawals via ATMs

Employee Provident Fund (EPF) subscribers may soon have the convenience of directly withdrawing their hard-earned money, including Provident Fund (PF) and other claims, through ATMs.

This initiative is part of the Labour Ministry's efforts to modernise IT systems and improve services for EPF subscribers.

According to Ms Sumita Dawra, "As part of this modernisation drive, we also aim to compare EPFO systems with the banking systems in India that are in place and are working well. For ease of living, bringing more transparency and ease of claims is also part of the plan."

Once implemented, this new system will allow claimants, beneficiaries, or insured individuals or their heirs to access their claim amounts directly through ATMs.

According to some media reports, withdrawals may be capped at 50% of the total PF balance (for marriage and education-related expenses).

Dedicated ATM cards shall allow EPFO subscribers convenient access to their funds, eliminating the need for lengthy claim procedures (which may take up to 15-20 days, even for online claim settlements).

The proposed system also intends to extend ATM-based withdrawals to nominees and legal heirs. To enable this, nominees or legal heirs may have to complete an additional procedure of linking their bank accounts to the deceased member's EPF account.

[Read: EPFO Reform: Subscribers May Soon Withdraw PF via ATMs]

Other useful features that may be on the horizon for EPFO subscribers, as the IT system upgrade nears its completion, include:

• Digital wallets, linked to EPFO accounts, to hold processed claim amounts and withdraw from whenever needed (subject to consultation and a regulatory nod from the RBI).

• A new mobile app to easily check balance, file claims, and handle EPF-related tasks from one platform.

• UAN-based EPF accounting for seamless account tracking.

• A revamped Electronic Challan cum Return (ECR) system for employers to file returns.

To Conclude...

The recent reforms from EPFO are a significant step forward in improving efficiency, accessibility, and convenience for its millions of subscribers.

By simplifying processes such as profile updates, PF transfers, and pension disbursements, EPFO is reducing bureaucratic delays and making it easier for members to access their hard-earned savings.

As technology-driven improvements continue, EPFO subscribers can look forward to a more user-friendly and efficient provident fund system in the near future.

Keep an eye on official announcements to stay informed about upcoming developments, policy updates, and any procedural changes.

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.
 

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