The EPFO plans to increase the minimum pension from Rs 1,000 to Rs 7,500, responding to demands from labor unions amid rising living costs. Additionally, EPFO intends to credit 8.25% interest on EPF deposits and implement ATM withdrawals for quicker access. Operational efficiency has improved, with a record number of claims processed.
Currently fixed at Rs 1,000 per month, the minimum pension has long been criticised as inadequate amid rising living costs. Labour unions and pensioners’ groups have intensified demands to raise it to Rs 7,500. Sources in the Employees’ Provident Fund Organisation or EPFO indicate that discussions are underway, with a decision likely soon. A parliamentary panel has also backed the proposal, calling for stronger social security for retirees.
EPF Interest and Access Reforms
Alongside the pension debate, EPFO is expected to credit 8.25% interest on EPF deposits for FY26, pending approval from the Ministry of Finance. In a major ease-of-access move, the body is preparing to introduce ATM-based withdrawals, allowing subscribers quicker access to their provident fund savings.
Record Claims, Faster Processing
Operational efficiency has improved significantly, with a record 8.31 crore claims settled in FY26, up from 6.01 crore a year earlier. Of these, 5.51 crore were advance claims. Automation has boosted speed, with over 71% of such claims processed within three days. Digital adoption has reduced paperwork, with crores of claims filed without cheque uploads and lakhs of accounts linked independently.
EPFO is also set to launch E-PRAAPTI, a portal to trace and activate inactive PF accounts using Aadhaar-based authentication, further strengthening India’s retirement framework.