Are you aware that the EPFO has introduced some new rules pertaining to employees? In May 2025, the Employee Provident Fund Organization (EPFO) made a series of very significant changes in rules connected with PF contributions, pensions, and the Provident Fund. These new provisions will have a continuing effect on millions of employees and employers. Let’s know in more detail what has been changed in this new EPFO rule and how it is going to be affected.
Change In PF Contribution Limit
EPFO now increased the limit of optional PF contribution. Now, employees are allowed to contribute up towards 30% of their basic salary to EPF; previously, this limit was 12%. On the other hand, the employer’s contribution remains at 12%. The idea behind this change is mainly to allow for extra saving on the part of the employee.
Improving In Pension Scheme
Under EPS (Employee Pension Scheme), the minimum monthly pension was increased from ₹ 3,000 to ₹ 5,000. This change is specifically beneficial for the pensioners whose pension was till now rather on the lower side. Besides, the period of average salary for calculating the pension has now been reduced from 5 years to 3 years.
New Rules For Provident Fund Withdrawal
The EPFO has made withdrawal of the funds from Provident Fund much easier. Presently, up to 75% of the amount can be released under emergency situations, whereas previously this limit was 50%. Ninety percent of the amount can now be withdrawn from the EPF for the purchase or construction of a house.
Online Facility Expansion
EPFO has further improved the online services. Nowadays members can avail of almost all services just by the UMANG app. The new system makes the PF balance check, claim filing and tracking easier.
Advice For Employees
Financial experts specify that employees should:
- Avail of recently introduced contribution channels
- Regularly check their PF balance
- Continue availing EPFO official website and app updates
- In case of any query, EPFO helpdesk can be contacted.
Conclusion
These are the new rules that EPFO has with respect to employees for better social security. With these new provision changes, the employees will have greater flexibility and other benefits. Thereby, every employee must understand these new provisions and take full advantage of them.
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