The government has given new information about EPFO 3.0 in the Parliament. This is a major digital transformation step aimed at making provident fund and pension services faster, easier and mostly paperless. Responding to a question in the Lok Sabha, Minister of State for Labor and Employment Shobha Karandlaje said EPFO 3.0 has been designed to “simplify operations and reduce paperwork”, allowing members to manage their accounts through a single platform. Its objective is less paperwork, faster settlement of claims, and less dependence on the employer. Let us also tell you what kind of information the Minister has given regarding EPFO 3.
Centralized Pension System: Big relief for 70 lakh pensioners
One of the biggest changes under EPFO 3.0 is the introduction of Centralized Pension Payment System (CPPS). The government said that this system has been fully implemented in all EPFO offices from January 1, 2025. Now pension is paid from one place and can be paid from any scheduled bank branch across India. Every month more than 70 lakh pensioners get its benefits. According to the response, CPPS ensures “speedy payment of pension”, thereby reducing the delays and errors that pensioners often had to face earlier.
Auto-settle claims up to Rs 5 lakh
- In a big relief to EPF members, the auto-settlement limit has been increased from Rs 1 lakh to Rs 5 lakh.
- More than 3.52 crore claims up to Rs 5 lakh settled automatically (FY26 to February 25)
- About 71.37 percent advance claims were processed in auto mode.
- Approximately Rs 51,620 crore was paid
- The government said the system has “significantly improved the efficiency of claims settlement”, significantly reducing processing time.
No need of employer: PF transfer now easy
Now changing jobs will not be stressful for EPF members. From January 19, 2025, EPFO has introduced a simplified transfer process: transfer claims are not required to be submitted manually in most cases, the requirement of employer approval for KYC-compliant accounts has been removed, and in many cases the transfer is done automatically. Data shared in Parliament shows that more than 70.5 lakh transfer claims were initiated automatically and more than 21.39 lakh transfers were completed without any intervention from the employer. This means that when you change jobs, your PF balance can now be easily transferred without any delay or paperwork.
Amnesty Scheme 2025: Enrollment boosted
The government also gave information about the progress made under the Employee Enrollment Scheme 2025. Under this scheme, 4,815 institutions participated and more than 39,000 UANs were declared. Benefits under the PM-VBRY scheme will start being available after completion of six months of eligibility, starting from March 2026.
minimum pension update
On the long standing demand of increasing EPS pension, the government has not yet announced any change. Currently, the minimum pension under EPS is Rs 1,000 per month and the fund is supported by employer contribution (8.33 per cent) and government contribution (1.16 per cent). The government said it is fully committed to strengthening social security, but also stressed the need to maintain a balance between sustainability of the fund and future liabilities.