EPFO 3.0: What Are the Major Reforms Announced by EPFO in 2025?

The Employees' Provident Fund Organisation (EPFO) is set to revolutionise claims processing by integrating the Unified Payments Interface (UPI). This initiative aims to enhance efficiency, reduce transaction time, and provide seamless access to pension and EPF benefits. As per ANI, Labour and Employment Secretary Sumita Dawra highlighted these upcoming reforms in an exclusive statement.

 #WATCH | Delhi: Labour and Employment Secretary Sumita Dawra says, "EPFO currently has around 7.5 crore active members who maintain their PF accounts and contribute towards their pension. "We have undertaken significant work in this regard. Claims up to Rs1 lakh have been… pic.twitter.com/ierkVl2KTU

— ANI (@ANI) March 25, 2025

What are the highlights of EPFO Reforms?

1. UPI Integration for Faster Claims Processing

• Objective: Streamline claims processing and enhance transaction efficiency.
  
• Active Members: 7.5 crore individuals contribute to their Provident Fund (PF) accounts.

Gig workers to be covered under Ayushman Bharat, preparations for scheme rollout almost complete: Labour Secretary

Read @ANI Story | https://t.co/ivvXGasYBt#GigWorkers #Gig #LabourSecretary pic.twitter.com/rZi2vFDqLU

— ANI Digital (@ani_digital) March 25, 2025

• Key Developments:
  
• Automation of claims up to ₹1 lakh.
  
• Self-correction mechanisms to reduce manual interventions.
  
• Elimination of unnecessary steps, making claim processing faster.
  
• Integration of databases to reduce claim settlement time to just three days.
  
• UPI Implementation Timeline:
  
• Proposal submitted to EPFO based on National Payments Corporation of India (NPCI) suggestions.
  
• Testing phase to be completed before rollout.
  
• Expected Launch: UPI-based claims system to be introduced by May-end 2025.
  
• Benefits for Members:
  
• Direct access to EPFO accounts via UPI.
  
• Instant approval and quick credit of funds for eligible members.
  

2. Pension Reforms for Wider Access

• Current Pensioners: 78 lakh pensioners receiving benefits under EPFO.
  
• Previous Limitation: Pension disbursed through a limited number of banks.
  
• New Implementation:
  
• Centralised pension system established in consultation with the Reserve Bank of India (RBI).
  
• Pensioners can now receive payments from any bank of their choice.
  
• Impact: Enhanced accessibility and convenience for pensioners nationwide.
  

3. Expansion of the Employment-Linked Incentive (ELI) Scheme

• Budgetary Allocation Increase:
  
• Previous Allocation: ₹10,000 crore
  
• Revised Allocation: ₹20,000 crore (as per the latest Budget).
  
• Beneficiaries:
  
• First-time employees and existing workers to gain additional support.
  
• Platform workers will receive health coverage under the Pradhan Mantri Jan Arogya Yojana (PMJAY).
  
• Government's Commitment: Ensuring financial security and welfare of workers across various employment sectors.
  

Implementation Timeline

Conclusion

The EPFO's latest reforms mark a significant step towards a more efficient and user-friendly provident fund system. The integration of UPI will ensure instant claim settlements, while the centralised pension system provides greater banking flexibility for pensioners. Additionally, the expansion of employment incentives reinforces the government's commitment to worker welfare. These measures will undoubtedly enhance financial security and ease access to benefits for millions of employees and pensioners across India.