EPFO Big Update: Minimum Pension May Jump to INR 7,500, ATM Withdrawals and Faster Claims on the Way

Subscribers of the Employees' Provident Fund Organisation could soon see major reforms aimed at improving retirement benefits and easing access to funds. The government is considering a significant hike in the minimum pension, along with new facility like ATM-based withdrawals.

Pension Hike Under Consideration

A proposal to increase the minimum pension under the Employees' Pension Scheme (EPS-95) is currently under review. The existing pension of INR 1,000 may be raised sharply to INR 7,500. The demand has gained traction among labour unions, and a parliamentary panel has also backed the revision. A final decision is expected soon, offering potential relief to lakhs of pensioners.

Interest Rate and Easier Withdrawals

In another key development, EPFO is likely to retain an interest rate of 8.25% for account holders. The proposal is awaiting approval from the Finance Ministry, after which the interest will be credited to subscribers’ accounts.

Additionally, EPFO is planning to introduce ATM-based withdrawals, a move that could make accessing provident fund money faster and more convenient for members. EPFO PF Withdrawal Rules 2026: Know When and How You Can Access Your Savings Easily.

Record Claim Settlements

EPFO has reported a strong performance in claim processing. During the financial year 2025 to 2026, it settled 8.31 crore claims, up from 6.01 crore in the previous year. Notably, 5.51 crore claims were related to advance or partial withdrawals, indicating growing reliance on the facility.

Automation has significantly improved processing speed. Around 71.11% of advance claims were settled within three days, compared to 59.19% last year, reducing delays and manual intervention. EPFO Plans Pension Overhaul: New Scheme May Cut Monthly Payouts, Replace Higher Pension System.

Digital Push Simplifies Processes

Digital initiatives have further streamlined operations. As many as 6.68 crore claims were processed without requiring cheque uploads, while 1.59 crore accounts were linked to banks without employer approval. EPFO also auto-processed 70.55 lakh transfer claims, and 29.34 lakh members updated their details independently.

In April 2026 alone, 61.03 lakh claims were settled, with nearly 98.70% processed within 20 days, reflecting improved efficiency.

New E-PRAAPTI Portal

EPFO has launched the E-PRAAPTI portal to help users activate inactive PF accounts using Aadhaar-based access. The platform is expected to benefit users without UAN linkage and may soon be extended to those without a Member ID.

These proposed and ongoing changes signal a strong push towards better service delivery and financial security for EPF subscribers.

(The above story first appeared on LatestLY on Apr 30, 2026 10:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).