EPFO reforms: New proposals in 2025 that would ease PF transfers, streamline pension calculations

In a significant move to modernise its operations, the Employees' Provident Fund Organisation (EPFO) has enacted several major changes to its processes as of 2025. These alterations are aimed at digitising services, simplifying procedures for members, and ensuring greater transparency. 

The new streamlined EPF account transfer process is projected to positively impact more than 1.25 crore EPFO members. With this improved system in operation, EPFO is aiming to facilitate smooth EPF account transfers totaling approximately Rs 90,000 crore in PF funds annually, consequently minimizing delays and member complaints.

Form 13

The Employees’ Provident Fund Organisation (EPFO) has introduced a revamped version of Form 13 to streamline PF account transfers for members changing jobs. Additionally, employers can now generate Universal Account Numbers (UAN) in bulk without Aad seeding, enhancing service efficiency and member convenience. 

The recently improved Form 13 feature on the EPF website now includes a significant update: a more defined separation of taxable and non-taxable portions of PF savings. This enhancement is designed to facilitate precise Tax Deducted at Source (TDS) computations on taxable interest earned on PF, ultimately simplifying tax compliance for both EPFO and its members.

Profile update

Another notable updates facilitates easier profile updates. Now, EPFO members with Universal Account Numbers (UAN) linked to Aadhaar can modify personal details online without needing additional documentation. This measure is expected to reduce administrative burdens and enhance user convenience.

Transferring PF

The process for transferring Provident Fund (PF) balances when changing jobs has also been streamlined. Previously, the transfer required employer approval, but with recent reforms, this is no longer necessary in certain cases. For members whose UAN is linked to Aadhaar and issued post-October 2017, transfers can occur without employer intervention if Member IDs are linked. This is also applicable if different UANs match on key personal details. 

Centralised Pension Payment System

Further digitalisation comes with the introduction of the Centralised Pension Payment System (CPPS). Effective from January 2025, this system allows for direct pension payments to any bank via the National Payments Corporation of India (NPCI) platform. This change eliminates the need for transferring Pension Payment Orders (PPOs) between offices, making the pension receipt process more efficient. Additionally, the UAN-Aadhaar linkage has become mandatory for issuing new PPOs, facilitating services like the Digital Life Certificate (Jeevan Pramaan).

Higher pension

EPFO has also clarified its stance on higher pension calculations. Ensuring a uniform approach, all pensions based on higher salaries will now follow standardised calculation methods. Institutions with exemptions must adhere fully to trust rules, and to maintain transparency, the process for recovering dues and paying arrears will be separately managed. These measures are designed to ensure clarity and consistency in pension calculations across the board, addressing previous concerns from pensioners and stakeholders.