EPFO Updates: Know These Changes Starting New Financial Year From April 1, 2025

The Employee Provident Fund Organisation (EPFO) is set to give EPF subscribers a better experience when it comes to claim settlements and provident fund (PF) transfers. The upcoming financial year FY2025 will see many changes in the retirement fund regulatory body.

These changes aim to simplify the processes for millions of employees and pensioners by making the key systems related to PF claims, transfers and corrections faster, simpler and more user-friendly. Let’s look over what these changes are:

Auto Claim Processing

One of the most significant updates is the update related to EPFO’s auto-claim settlement process. The EPFO has now expanded auto-mode processing to include advances for housing, education, and marriage. Previously this was only applicable to medical emergencies.

Shobha Karandlaje, Minister of State for Labour and Employment has noted that about 60 per cent of advance claims are now processed automatically wherein most are settled within three days.

As of March 6, 2025, EPFO had processed 2.16 crore auto-claims. This is a big jump from 89.52 lakh claims settled via auto mode in 2023-24.

Easier PF Transfers and Corrections

Transferring PF balance is sometimes a hassle for employees switching their jobs, a major issue here is often related to the requirement of employer attestation.

However, starting this financial year, Universal Account Number (UAN) holders will no longer need their employer’s attestation for PF claims, needed that their UAN will be Aadhaar-verified/linked. Currently, only 10 per cent of such claims still require additional approvals.

The EPFO has further simplified the process for correcting member details. Now, employees with Aadhaar-verified UANs can make corrections to their IDs without any intervention from EPFO offices. According to government data, about 96 per cent of such corrections are already being done without needing to visit an EPFO branch.

No More Cheque Leaf Submission Required!

This is a small but impactful change that would help many EPF subscribers. The EPFO has removed the requirement to submit a cancelled cheque along with claim forms. Meaning, if your UAN is KYC-compliant and meets the prescribed criteria, you can skip this step altogether. This eliminates unnecessary paperwork and speeds up claim settlements.

Moreover, to further help members, the EPFO has introduced upfront validations that would guide users on whether their claims are eligible before submission. This would reduce the number of rejected claims and ensure that members only file valid applications.

Big Tech Upgrades Coming Your Way?

The retirement fund regulatory body is also undergoing a digital transformation under its EPFO 3.0 initiative. The idea is to make EPFO services more technology-driven and user-friendly.

A key step in this direction has been the centralisation of member databases under the CITES 2.01 system, which will streamline data management and claim processing.

PF Withdrawal Via ATMs or UPI Soon?

The government has also confirmed that EPFO is working on making the payment better in the coming financial year 2025. It is working on integrating its payment system with banks and the National Payments Corporation of India (NPCI).

While there’s no official launch date yet, discussions are underway to enable PF withdrawals via ATMs and UPI.

However, with new technology comes the challenge of security. To address this, EPFO has ramped up its cybersecurity measures, including software upgrades, next-generation firewalls, security audits, and cyber awareness training.

Good News For Pension Disbursal

Starting December 2024, the government has now operationalised the Centralised Pension Payment System (CPPS). The system would ensure that over 69 lakh pensioners receive their payments on time through a streamlined and centralised process.

With some changes already rolled out and others underway, the EPFO is making big strides to simplify and modernise its services.