EPS-95 Pension: If you’re a salaried employee or recently retired, there’s big news from the Employees’ Provident Fund Organization (EPFO) — and it could affect how and when you get your pension.
Starting October 13, 2025, the EPFO has rolled out new pension rules to make the Employees’ Pension Scheme (EPS) more transparent, digital, and secure. The goal? To simplify life for millions of working Indians, but some of these changes might surprise you.
Let’s break down the five key updates you need to know before they impact your retirement plans.
EPS Withdrawal Only After 36 Months
This is one of the biggest changes. Earlier, if you left your job, you could withdraw your EPS money after just two months of unemployment.
Now, that waiting period has been extended to 36 months — that’s three years.
Why this change?
EPFO wants to encourage members to stay invested longer, ensuring they receive lifelong pension benefits instead of withdrawing early and losing long-term security.
It’s a nudge toward financial discipline — not punishment.
Minimum Pension Likely to Increase
Good news for retirees: the long-standing ₹1,000 monthly minimum pension may finally be revised.
The Parliamentary Standing Committee on Labor has recommended an increase, and the government is actively reviewing it. If approved, this update could bring much-needed relief to India’s pensioners struggling with inflation.
Digital Pension Payment System Introduced
EPFO has launched a Centralized Pension Payment System (CPPS) — a move that ends one of the biggest pain points for retirees.
Now, you can receive your pension from any bank branch in India, regardless of where your Pension Payment Order (PPO) was issued.
No more branch transfers. No more delays. It’s all faster, digital, and traceable.
Higher Pension for Employees with Actual Salary Contributions
Here’s something many employees have been waiting for — clarity on higher pension eligibility.
EPFO has confirmed that workers who contributed to EPS based on their actual (higher) salary — and whose contributions were accepted — will now qualify for higher pension payouts.
This comes after several court rulings and could benefit lakhs of employees who were uncertain about their future benefits.
EPS-95 Scheme Under Full Review
The EPS-95 scheme, which forms the backbone of India’s pension system, is getting a major overhaul.
The government is reviewing contribution rates, pension formulas, and benefit calculations to better align with today’s cost of living and inflation.
This review signals a shift toward a more modern, sustainable pension model that better serves both employers and employees.
What Should EPS Members Do Now?
If you’re part of the EPFO or nearing retirement, here’s how you can stay prepared:
- Keep your UAN and KYC details updated to avoid any delays.
- Read the new rules carefully before deciding on withdrawal.
- Avoid full withdrawal if you can — staying invested ensures steady lifelong income.
- Use the EPFO portal or mobile app for all pension-related activities.
The Bottom Line
EPFO’s new pension rules represent a clear shift toward digital transparency and long-term security. By making withdrawals stricter and payments simpler, the system now rewards those who think ahead.
For millions of Indian employees, this could mean a more stable, predictable, and dignified retirement.
Frequently Asked Questions
1. When do the new EPFO pension rules come into effect?
The new rules are effective from October 13, 2025, impacting EPS withdrawals, payments, and pension eligibility.
2. Can I still withdraw my EPS after leaving my job?
Yes, but only after 36 months of unemployment under the new rules. Early withdrawals are no longer allowed.
3. Will the minimum EPS pension really increase?
A proposal to raise the ₹1,000 minimum pension is under active government review and likely to be implemented soon.