India's retirement and provident fund system may soon see one of its biggest overhauls, with the government reviewing proposals that could raise minimum pensions and simplify access to savings.
Minimum pension hike under discussion
The government is reportedly examining a proposal to increase the minimum pension under the Employees' Pension Scheme (EPS-95) from Rs 1,000 to as high as Rs 7,500. If approved, this would mark a significant rise in monthly retirement income for millions of pensioners.
The demand for a revision has been raised repeatedly by labour unions and has also been supported by a parliamentary committee, which has recommended improving pension payouts. A final decision is still awaited.
ATM withdrawals from PF likely soon
EPFO is also working on enabling ATM-based withdrawals for provident fund savings. This would allow subscribers to access their PF money more quickly, reducing dependence on lengthy claim processes.
If implemented, the system is expected to make emergency withdrawals simpler and improve financial flexibility for employees.
Interest rate and financial updates
EPFO is expected to offer an interest rate of around 8.25% for the current cycle, subject to approval from the Finance Ministry. Once cleared, the interest will be credited directly into subscribers' accounts.
EPFO has reported a strong performance in 2025-26, settling over 8.31 crore claims compared to 6.01 crore in the previous year. A large share of these were advance withdrawals.
Automation has significantly improved efficiency, with more than 70% of advance claims now processed within three days. The organisation has also reduced manual intervention through digital systems.
Digital reforms improving access
Several digital initiatives have simplified EPFO services, including:
- Large-scale claims processed without cheque verification
- Bank account linking without employer approval
- Auto-processing of transfer claims
- Self-updating of member details
These changes have made the system faster and more user-friendly.
New e-PRAPTI portal for inactive accounts
EPFO is also launching a new platform called e-PRAPTI to help activate old and inactive provident fund accounts.
The Aadhaar-based system will allow users to recover and track funds from accounts that may not be linked to a UAN or were created before 2014. The aim is to reduce unclaimed funds and improve transparency.
If implemented, these reforms could reshape how employees access retirement savings in India, making pensions higher, withdrawals faster, and account management more digital and transparent.