EPFO: New pension rules; over 15 lakh employees apply; claim process accelerates

EPFO News: The government has announced that more than 15 lakh employees have opted for the higher pension scheme under the EPFO. Find out when and how this money will be credited to accounts. Read the full report and the new rules.

EPF Claim Rules: A major update regarding EPFO ​​pensions has emerged. The central government informed Parliament that it has received over 15.24 lakh claims for higher pensions based on higher salaries. As of August 5, 2026, only 11,595 of these claims remained pending. Minister of State for Labour and Employment Shobha Karandlaje provided these figures in a written reply in the Lok Sabha. She noted that the process for higher pensions gained momentum following the Supreme Court's verdict on November 4, 2022.

Over 1.49 lakh PPOs issued

According to government data, out of the more than 15.24 lakh applications received, 1,49,806 Pension Payment Orders (PPOs) have been issued to retired employees so far. The higher pension option allows eligible members to contribute based on their actual basic salary rather than a fixed wage ceiling. This can result in a higher pension post-retirement, though it requires making larger contributions to the pension fund during one's employment.

According to the government, 85.85 lakh pensioners were registered under the Employees' Pension Scheme as of March 31, 2026. By this time, ₹15,819.28 crore had been disbursed as pensions under the scheme. The government also stated that EPS 2026 is now in effect, replacing EPS 1995.

Minimum pension of ₹1,000

The government provides a minimum monthly pension of ₹1,000 to eligible pensioners through budgetary support. The government contributes 1.16% of the wage ceiling to the pension fund, while the company contributes 8.33% of the salary to the same fund.

The EPFO ​​has revised the rules for premature withdrawals. A waiting period of 12 months has been set for final EPF settlement, and 36 months for EPS withdrawal benefits. Partial withdrawals are categorized into three groups: essential needs, housing requirements, and special circumstances.

Withdrawal of up to 75% of EPF

Under these rules, members can withdraw up to 75% of their EPF balance. This covers needs such as unemployment, illness, children's education, and home construction. In special circumstances, members can withdraw up to 75% of the total fund as an advance twice a year without specifying a reason.

Opting for a higher pension means a larger portion of the salary goes into the pension fund during employment, but it can result in a higher pension after retirement. Meanwhile, the new withdrawal rules have made it easier to access funds during times of need, although the fixed waiting period must be observed for final settlement.