EPFO May Hike Minimum Pension from Rs1000 up to ₹2,500
Proposal to raise pension from ₹1,000 to ₹1,500 or ₹2,500; new digital services including PF-linked ATM card under discussion
Bhubaneswar : The Employees’ Provident Fund Organisation (EPFO) is preparing for its next Central Board of Trustees (CBT) meeting, scheduled on October 10–11, under the chairmanship of Union Labour Minister Mansukh Mandaviya. The meeting is expected to take up several crucial issues, with the most significant being a proposal to increase the minimum pension for subscribers from the current ₹1,000 to either ₹1,500 or ₹2,500.
If approved, the move will benefit millions of pensioners across India, offering financial relief at a time when inflation has significantly raised living costs. The government is keen to provide this boost ahead of Diwali, ensuring that EPFO’s 8 crore members have greater spending power during the festive season. Trade unions have long demanded a hike in the minimum pension, calling ₹1,000 insufficient for survival in today’s economy.
Digital services upgrade on the cards
Apart from pension reforms, EPFO is also preparing to launch the third version of its digital services platform. This upgrade is expected to make withdrawals and account updates more convenient for members. One of the key features under consideration is the introduction of a dedicated PF-linked ATM card, allowing subscribers to directly withdraw funds from ATMs.
Members will be required to activate their Universal Account Number (UAN) and link their Aadhaar with their PF accounts to avail this facility. Discussions are also underway to enable withdrawals via UPI, making access to provident fund savings faster and more flexible. Additionally, the revamped system will support real-time claim processing and seamless digital updates, reducing delays faced by subscribers.
Rules for PF withdrawal
As per existing PF withdrawal rules, members who lose their job can withdraw up to 75 percent of their PF balance after one month of unemployment, with the remaining 25 percent allowed after two months. The proposed digital tools are expected to make such withdrawals smoother, offering members quicker access to their savings in times of need.
Rising costs make pension hike crucial
Experts have pointed out that the current minimum pension of ₹1,000 is inadequate for pensioners, especially given the sharp rise in healthcare and daily living expenses. In fact, beneficiaries of some government schemes receive higher allowances than EPFO pensioners. Since contributions to PF accounts in earlier years were capped at lower amounts, a large section of pensioners still fall under the minimum pension bracket.
Increasing the pension to ₹1,500 or ₹2,500 would help retired workers cover essential expenses, particularly medical costs, which form a significant burden in old age. Analysts believe such a step will also strengthen social security in India, offering dignity and financial stability to the elderly.
Balancing reform and sustainability
While trade unions welcome the possibility of a pension hike, the proposal must balance long-term fund sustainability. EPFO’s financial health and contribution base will play a crucial role in determining whether the hike is implemented in phases or as a flat increase.
The upcoming CBT meeting is, therefore, expected to be closely watched by millions of pensioners and active employees alike. With both pension reforms and digital service upgrades on the agenda, the decisions made in October could mark a turning point in EPFO’s efforts to modernize services and improve social security benefits for its members.
