NEW DELHI, May 13: The Employees’ Provident Fund Organisation (EPFO) is preparing to introduce an automated system for final provident fund withdrawals, a move aimed at speeding up claim settlements and simplifying access to retirement savings for millions of subscribers.
Speaking at ASSOCHAM’s National Seminar on New Labour Codes on Wednesday, Central Provident Fund Commissioner Ramesh Krishnamurthi said the retirement fund body is expanding its auto settlement mechanism beyond advance claims to include final withdrawals as well.
At present, EPFO processes partial withdrawal claims of up to Rs 5 lakh through an automated mode, with settlements completed within three days of claim submission. The organisation now plans to extend the same technology driven framework to full withdrawal requests.
Krishnamurthi said EPFO is also working on automatic transfer of provident fund accounts when employees change jobs, reducing paperwork and improving convenience for members.
“You don’t have to file a form anymore. We are trying to automatically migrate accounts to the latest member account,” he said.
The EPFO currently serves more than seven crore members across the country and has been undertaking several digital reforms to improve efficiency and reduce delays in services.
The developments come shortly after the Centre notified the four new labour codes on May 8. According to officials, further notifications specifically related to EPFO schemes are expected to be issued soon.
Krishnamurthi said the revised framework focuses on simplifying procedures, standardising definitions, and incorporating reforms approved by the Central Board of Trustees over the years.
Under the updated system, the EPF Scheme 1952, Employees’ Deposit Linked Insurance Scheme 1976, and Employees’ Pension Scheme 1995 will also be reissued under the new legal structure.
He stated that the proposed changes do not involve major alterations to the core schemes but are designed to integrate lessons from previous implementation experiences while streamlining withdrawal procedures and regulatory provisions linked to exempt trusts.
Union Labour Secretary Vandana Gurnani, who also addressed the seminar, said labour remains a concurrent subject under the Constitution and states would frame their own operational rules under the labour codes.
She said the government’s objective has been to balance ease of doing business with worker welfare, while ensuring that labour reforms support both industrial growth and employee protection.
Gurnani added that industries must view labour reforms not merely as compliance requirements but as a commitment towards creating a healthier, more secure, and productive workforce.