Big EPFO Update: Minimum Pension May Rise 7.5 Times, ATM Withdrawals Soon!
New Delhi,May 1 (BNP): In a major relief for millions of salaried employees and pensioners, the government is reportedly considering a sharp hike in the minimum pension under the Employees’ Pension Scheme (EPS-95). The current minimum pension of ₹1,000 per month may be increased to ₹7,500, according to recent reports.
The proposed revision comes amid growing demands from labour unions and pensioners’ associations, who have long argued that the present pension amount is inadequate in view of rising inflation and living costs. A parliamentary panel has also reportedly supported the move, and a final decision is expected soon.
In another significant development, the Employees’ Provident Fund Organisation (EPFO) is also working on enabling ATM-based withdrawals for Provident Fund (PF) accounts. This move is expected to make access to funds faster, easier, and more convenient for subscribers.
Reports suggest that under the proposed digital upgrade, members may be able to withdraw PF money directly through ATMs, similar to regular bank transactions, reducing delays in emergency fund access.
Additionally, EPFO is likely to maintain an 8.25% interest rate on EPF deposits for FY26, subject to final approval from the Finance Ministry.
If approved, these reforms would mark one of the biggest overhauls in EPFO services, offering higher retirement security and easier access to savings for crores of workers across India.