After GST 2.0, Modi government will give another gift, these big changes will happen in EPF! Announcement possible before Diwali

After GST 2.0 Relief, Modi Government Plans Major EPF Reforms: ATM & UPI Withdrawals, Higher Pension Likely Before Diwali

After providing significant relief through GST 2.0 by reducing tax slabs, the Modi government is preparing another major gift for millions of employees across India. According to official sources, the Employees’ Provident Fund Organisation (EPFO) will take up the ambitious EPFO 3.0 initiative in its upcoming October meeting. The proposals include allowing partial withdrawals of provident fund savings through ATMs and UPI platforms, along with a plan to raise the minimum monthly pension from ₹1,000 to between ₹1,500 and ₹2,500. If approved, the announcements are expected to be made ahead of the festive season, giving workers and pensioners added financial security and convenience.

What Is EPFO 3.0?

The EPFO 3.0 initiative aims to modernize provident fund services and make them as seamless as banking. Under this system, account holders will be able to withdraw funds instantly via ATM cards or UPI-based payments, removing the need to go through lengthy online claim filing processes. Currently, PF withdrawals often take several days or even weeks to process, creating difficulties for employees during emergencies.

The proposed system would make it possible for members to access up to ₹1 lakh in partial withdrawals for urgent needs such as medical treatment, housing, education, or marriage. By integrating technology directly into fund access, EPFO 3.0 could become a game-changer for over 8 crore subscribers, making provident fund accounts more flexible while maintaining their long-term savings purpose.

Pension Hike on the Table

The Central Board of Trustees (CBT), EPFO’s highest decision-making body, will also discuss a proposal to increase the minimum monthly pension. At present, pensioners receive as little as ₹1,000 per month, an amount considered inadequate by most employee unions. The new proposal seeks to raise this amount to a range of ₹1,500–₹2,500, addressing a long-pending demand from trade unions and employee groups.

If implemented, this pension increase will directly benefit millions of retired workers across the country, giving them much-needed financial relief amid rising living costs.

Key Meeting Scheduled for October

The crucial meeting of the Central Board of Trustees is scheduled for October 10 and 11, 2025, under the chairmanship of Union Labour and Employment Minister Mansukh Mandaviya. Representatives of employees, employers, and state governments are expected to participate. While the formal agenda has not yet been published, insiders confirm that EPFO 3.0 and the pension hike will be central discussion points.

Trade Unions Express Concerns

However, not everyone is fully convinced about the proposed reforms. Several trade unions have raised objections, arguing that allowing ATM and UPI-based withdrawals may weaken the very purpose of provident fund savings, which are meant for long-term security. They emphasize that withdrawals should remain restricted to specific emergencies already defined by law, such as education, marriage, healthcare, or purchasing a home.

Unions fear that unrestricted or easy withdrawals might encourage premature spending, leaving employees with insufficient savings for retirement.

A Festive Season Bonanza?

Despite the concerns, the government’s intention appears to be clear—deliver financial relief before Diwali. By offering easier access to PF savings and boosting pensions, the move could stimulate consumer spending during the festive season and provide an indirect boost to the economy.

For workers, retirees, and their families, these changes could mean greater financial flexibility, security, and convenience. If approved, the EPFO 3.0 rollout would mark one of the most significant reforms to India’s social security system in recent years.

✅ Bottom Line: After GST 2.0 reforms, the Modi government is gearing up for another big announcement—EPFO 3.0 with instant ATM/UPI withdrawals and a higher minimum pension. The decision, expected before Diwali, could benefit over 8 crore account holders and millions of pensioners, reshaping the future of provident fund management in India.