India has brought 2025 major changes for private sector employees in India. EPFO (Employees’ Provident Fund Organization) has announced new rules which will increase not only salary but also pension. The government has proposed to increase the wage ceiling from ₹ 15,000 to ₹ 21,000 under EPS-95 (Employees’ Pension Scheme 1995. In addition, there is a demand to increase the minimum pension from ₹ 1,000 to ₹ 7,500.
The main objective of these changes is to strengthen the economic security of the employees under the increasing pressure of inflation. EPFO’s new 2025 rule includes features such as withdrawing money from PF account through ATM, obtaining pension from any bank and removing contribution limit. All these changes will make retirement planning easier.
EPFO New Rules 2025: Overview Table
| Parameter | Description |
| Name of the scheme | EPS -95 (Employees Pension Scheme 1995) |
| Current pay limit | ₹ 15,000 |
| Proposed limit 2025 | ₹ 21,000 |
| Minimum pension | ₹ 1,000 (Demand: ₹ 7,500) |
| Maximum pension | ₹ 7,500 (up to ₹ 10,050 on the new border) |
| Contribution (%) | Staff: 12%, employer: 8.33% EPS + 3.67% EPF |
| Main advantage | Large pension, PF withdrawal from ATM, pension from any bank |
EPFO Salary Ceiling Hike 2025: Increase in salary limit
EPFO has proposed to increase the basic salary limit from ₹ 15,000 to ₹ 21,000. This will directly affect the monthly pension of the employees:
- Pension Formula: (Pensionable Salary × Service Period) ÷ 70
- Example: ₹ 21,000 × 35 years ÷ 70 = ₹ 10,050 per month (current ₹ 7,500 to 34% more).
Other than this:
- The contribution of the employer will also increase (8.33% will now deposit ₹ 21,000).
- Retirement funds will also increase due to increasing amount of deposits in PF account.
EPS-95 Pension Hike Demand: ₹ 7,500 demand for minimum pension
On 10 January 2025, representatives of EPS-95 pensioners met Finance Minister Nirmala Sitharaman and demanded a minimum pension to ₹ 7,500. Key points:
- Current Status: 36.60 lakh pensioners get less than ₹ 1,000.
- Base of demand: Life is difficult due to not getting inflation allowance (DA).
- Opposition: Trade unions propose ₹ 5,000 pension, but pensioners consider it inadequate.
Epfo New Rules 2025: 5 big changes
1. PF withdrawal from ATM
From 2025-26 EPFO members will be able to remove their PF funds using ATM card. This feature will be particularly useful in emergency case.
2. Contribution boundary ends
Now employees will be able to contribute to EPF up to 12% of their actual salary (earlier limited to ₹ 15,000).
3. Centralized pension payment system
Pension will be available in any bank from 1 January 2025. PPO transfer will not be required.
4. Equity investment option
EPFO members will be able to invest some part of their funds directly in the stock market (now only ETFS is invested).
5. IT system upgrade
EPFO’s new IT system will be launched by June 2025, which will make the claim process faster and transparent.
EPFO Pension Types: Types of Pension
| Type | Description |
| General pension | Get at the age of 58 years. |
| Famine pension | 4% per year deduction on taking before 50 years. |
| disability pension | For permanently disabled employees. |
| Widow/widow pension | To the spouse on the death of the member. |
EPFO Pension Apply Process: How to apply?
- Fill Form 10D (from EPFO portal or office).
- Submit the necessary documents:
- Aadhar card
- Bank account details
- Service certificate
- Get PPO (Pension Payment Order).
- Pension will start to be deposited in bank account.
Disclaimer: This article is based on news reports and proposals of EPFO. The ₹ 7,500 minimum pension is still at the demand level, the government has not officially accepted it yet. EPFO official website for any new update (www.epfindia.gov.in) Check.
