The Employees’ Provident Fund Organisation (EPFO) has brought in a series of new changes over the past few months, many of which are linked to the new Income‑tax Act, 2025. These updates are meant to make rules clearer for employers and employees and to make it easier for PF subscribers to access their money and services online.
Key change: New Form 121 for tax deduction (TDS)
Earlier, people used two separate forms—Form 15G (for those below 60) and Form 15H (for senior citizens)—to tell their bank or EPFO that their total income is below the taxable limit and TDS should not be cut on interest or EPF withdrawals.
Under the new rules:
- These two forms have been replaced by a single unified Form 121 from 1 April.
- All taxpayers who are below the taxable limit can use this one form to claim exemption from TDS on EPF interest, withdrawals, and similar income.
- This makes the process simpler and removes the age‑based split between the older forms.
EPFO has issued a circular and is asking banks and employers to use Form 121 instead of the old 15G/15H for PF‑related transactions.
New E‑PRAAPTI portal to track old PF accounts
EPFO is also planning to launch a digital platform called E‑PRAAPTI (EPF Aadhaar‑Based Access Portal for Tracking Inoperative Accounts). This will help members:
- Find and link old or “lost” PF accounts that may be inactive.
- Update their personal details and KYC.
- Seed their UAN (Universal Account Number) online, even without the employer’s support.
In the first stage, the portal will work through member IDs from older PF accounts. Later, it will allow people who cannot remember their IDs to locate accounts using Aadhaar and other basic details.
This move is part of a wider push to cut paperwork, reduce dependence on former employers, and unlock the many EPF accounts that have become dormant or “inoperative.”
Possible hike in minimum pension (EPS‑95)
There is also ongoing discussion about raising the minimum monthly pension under the Employees’ Pension Scheme, 1995 (EPS‑95), which is currently fixed at ₹1,000 per month. Reports suggest:
- The government already spends over ₹950 crore every year to keep the floor of ₹1,000 for all eligible EPS pensioners.
- Labour unions and pensioner groups are demanding that the minimum be raised to ₹7,500 per month, saying ₹1,000 is not enough for basic living costs.
- A parliamentary panel has backed the idea and recommended a higher, more realistic pension to protect retirees, especially in times of rising inflation and healthcare costs.
However, as of now, this is still in the discussion stage and no official order has been issued. If approved, such a hike could benefit millions of EPFO pensioners across the country.
In short, the recent EPFO changes—simpler TDS forms, better online access to old PF accounts, and the possibility of a much higher pension—aim to make the provident fund and pension system easier to use and more supportive for workers and retirees.
