Highlights from the 238th CBT Meeting: EPFO Eases Norms, Allows 100% Early PF Withdrawal, Launches Vishwas Scheme, Digital Life Certificate and Much More

On 13-10-2025, the Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya chaired the 238th meeting of the Central Board of Trustees (‘CBT’), Employees’ Provident Fund Organisation (‘EPFO’). The meeting marked a significant milestone in EPFO’s journey toward simplification and liberalization, with a series of transformative decisions focused on enhancing member convenience, streamlining litigation processes, and accelerating digital transformation across the organization.

Key Highlights:

Simplification and liberalization of EPF:

1. One of the major decisions taken by the Board was the approval of simplified and liberalized provisions for EPF partial withdrawals.

2. A total of 13 complex rules were consolidated into three broad categories:

   • Essential Needs (illness, education, marriage),

   • Housing Needs,

   • Special Circumstances.

3. Members can now withdraw up to 100% of their eligible PF balance, including both employee and employer contributions.

4. The number of permissible withdrawals has been increased:

   • For education – 10 times

   • For marriage – 5 times.

5. The minimum service requirement is now uniformly set to 12 months for all types of withdrawals.

6. Under Special Circumstances, members are no longer required to specify reasons, reducing claim rejections.

7. A provision has also been introduced to maintain 25% of contributions as a minimum balance, to ensure continued interest accrual at 8.25% per annum.

8. These changes pave the way for 100% auto-settlement of claims with zero documentation, significantly improving ease of access.

9. Additionally, the premature final settlement window has been extended from 2 to 12 months, and the final pension withdrawal window from 2 to 36 months, offering greater flexibility to members.

Vishwas Scheme:

1. To address the growing burden of litigation over penal damages, the Board launched the ‘Vishwas Scheme’, a rationalized penalty framework.

2. As of May 2025, ₹2,406 crore in penal damages were pending across over 6,000 legal cases, with 21,000 potential cases in EPFO’s e-proceedings portal.

3. Previously, penal damage rates ranged from 5% to 37% annually depending on the period of default.

4. The new scheme introduces graded rates:

   • 0.25% per month for defaults up to two months,

   • 0.50% per month for defaults up to four months,

   • 1% per month thereafter.

5. The scheme will operate for 6 months, extendable by an additional 6 months, and covers pending litigation under Section 14-B (Employees’ Provident Funds and Miscellaneous Provisions Act, 1952), finalized but unpaid orders, and pre-adjudication cases.

6. All pending cases will be abated upon compliance, reducing legal costs and promoting timely remittances.

7. This initiative is expected to benefit both employers and members by lowering legal costs, simplifying compliance, and promoting trust in the EPF system.

EPFO—IPPB partnership:

1. The Board approved a partnership with India Post Payments Bank (‘IPPB’) to deliver Digital Life Certificate (‘DLC’) services to Employees’ Pension Scheme, 1995 pensioners at their doorstep.

2. Each certificate will cost ₹50, fully borne by EPFO.

3. This service will leverage IPPB’s vast postal network, especially benefiting pensioners in rural and remote areas.

4. It ensures timely pension continuity, faster family pension initiation, and improved accuracy under the Centralised Pension Payment System (‘CPPS’).

EPFO digital transformation framework:

1. The Board approved a comprehensive digital overhaul under the EPFO 3.0 initiative to modernize service delivery across the organization.

2. This transformation is built on a hybrid system that combines a Core Banking Solution with advanced cloud-native, API-first microservices.

3. It covers essential operational areas such as account management, enterprise resource planning (ERP), compliance tracking, and a unified platform for member interaction. The rollout will take place in phases, introducing automated claim processing, instant withdrawals, multilingual self-service options, and seamless integration with payroll systems.

4. These upgrades reaffirm EPFO’s commitment to delivering fast, transparent, and technology-driven services to over 30 crore members nationwide.

Four Portfolio Managers:

To ensure prudent management of EPFO’s debt portfolio, the Board approved the appointment of four Fund Managers for a 5-year term, following recommendations from the Selection and Investment Committees. This move marks a significant step toward diversification and enhanced returns for members.

Inaugurations during the meeting:

Union Minister Mandaviya inaugurated several key digital modules under the Centralised IT Enabled System project:

• The re-engineered Return Filing Module streamlines employer compliance through a simplified four-step Electronic Challan-cum-Return (ECR) workflow with real-time validations.

• The re-engineered User Management Module strengthens system security and enables the creation of new EPFO offices, enhancing service delivery.

• The upgraded e-Office platform improves workflow automation and document tracking, allowing faster processing of member service requests.

• The implementation of SPARROW (‘Smart Performance Appraisal Report Recording Online Window)’ introduces a paperless and transparent system for managing Annual Performance Appraisal Reports (‘APARs’) of EPFO staff.