The Employees Provident Fund Organization (EPFO) has recently announced several important changes for employees, which will help improve their pension and provident fund (PF) experience. These changes include an increase in death benefits under the EDLI scheme, centralization of pension payment system, and simplifying the PF transfer process. These changes will play an important role in strengthening financial security for employees.
These new rules of EPFO will benefit not only employees but also their families. Under the EDLI scheme, new employees will also get death benefits, which will provide financial assistance to their family in the first year itself. In addition, centralization of the pension payment system will ensure that pensioners get timely and convenient payment.
With these changes, the EPFO has also simplified the PF transfer process, which will help employees to transfer their PF account easily when changing the job. This process is now more fast and transparent, which will help employees to improve their provident fund better.
EPFO Update: Important Change for Employees
The table below gives details of the main changes made by EPFO:
| Detail of change | Profit and impact |
| Death benefits in EDLI Scheme | New employees will get death benefits in the first year, which will provide a minimum insurance cover of ₹ 50,000. |
| Centralized pension payment system (CPPS) | Pensioners will get timely and convenient payment, which will reduce the delay. |
| PF transfer process simplification | Employees will be helped to easily transfer your PF account when changing jobs. |
| Clarification in pension policy | Explanation in policies for pension on high salary, which will give justice to pensioners. |
| EPF interest rate | The interest rate of 8.25% has been recommended for FY 2024-25. |
| Simplification of joint declaration process | The joint declaration process has been simplified, which will speed up the claims. |
Changes in EDLI Scheme
EPFO has increased death benefits under the EDLI scheme, which will also benefit new employees. Now if an employee dies in the first year of his job, his family will get a minimum insurance cover of ₹ 50,000. This change will benefit around 5,000 families per year.
In addition, if an employee disappears within six months of his final contribution, his family will get EDLI benefits, provided his name is not removed from parole. This change will cover around 14,000 cases per year.
Centralization of pension payment system
EPFO has implemented Centralized Pension Payment System (CPPS), which will facilitate pensioners and ensure timely payment. Under this system, pension payment will be done through NPCI, which will make it easier for pensioners to receive their payment in any CEDULED Commercial Bank.
With this system, pensioners will no longer need to transfer PPO (Pension Payment Order) due to banking jurisdiction. In addition, UAN-KYC accounts connected to Aadhaar can be used for pension payment, which will reduce the errors in payment.
PF transfer process simplification
The EPFO has also simplified the PF transfer process, which will help employees to transfer their PF account easily when changing jobs. Now employees can transfer their PF account online through their UAN and Aadhaar, so that pre -or current employer will not be required.
This process will be applicable in cases where UAN is released after 1 October 2017 and is connected to Aadhaar. In addition, if the UAN is released before 1 October 2017 and is connected to Aadhaar, the transfer process will be simple, provided the name, date of birth, and gender are all the same on the members ID.
Clarification in pension policy
EPFO has also clarified in pension policy, which is for pension on high salary. This explanation will provide justice to pensioners and transparency in pension calculation will increase. In addition, the rules for pension on higher wedges (Pohw) have been clarified, which will give equal benefits to all categories of pensioners.
EPF interest rate
EPFO has recommended the EPF interest rate of 8.25% for FY 2024-25, which will soon be notified by the government. This interest rate will provide better returns to EPF account holders on their deposits and strengthen their financial security.
Simplification of joint declaration process
The EPFO has also simplified the joint declaration process, which will speed up the claims. In this process, now members have been given the facility to apply online based on their UAN and Aadhaar, which will speed up the process.
conclusion
These changes made by EPFO will play an important role in strengthening financial security for employees. The increase in death benefits under the EDLI scheme, centralization of pension payment system, and simplification of PF transfer process will benefit employees and their families. These changes will improve the services of EPFO and will help employees to improve their provident funds and pension better.
Disclaimer: This article is for general information and is not based on the official announcements of EPFO. Get information from the official website of EPFO or authorized sources before making any decision.
