by Kapgrow Corporate Advisory Services Private Limited.
The 238th Meeting of the Central Board of Trustees (CBT), EPF, held on 13 October 2025, chaired by Dr. Mansukh Mandaviya, marked a turning point in how India’s retirement and social security systems are managed. The decisions taken will directly impact employers, HR leaders, and over 70 million EPF members across the country.
Here’s a breakdown of what matters most for HR and compliance teams:
🔹 1. Simplified & Liberalised Partial Withdrawal Rules
EPFO has merged 13 separate withdrawal provisions into one unified framework covering:
• Essential Needs (education, marriage, medical treatment)
• Housing-related purposes
• Special Circumstances
Key reforms include:
• Members can withdraw up to 100% of their eligible balance (employee + employer share).
• Minimum service period reduced to 12 months across categories.
• Under Special Circumstances, no reason needs to be specified.
• A 25% minimum balance must remain to protect long-term savings.
• Auto-settlement of claims will minimise documentation and delays.
• Relaxation in timelines: Premature Final settlement (2→12 months) and Final Pension withdrawal (2→36 months).
✅ HR Action Point: Update internal EPF withdrawal SOPs and educate employees on the revised rules to ensure clarity and compliance.
🔹 2. “Vishwas Scheme” – Reducing Litigation & Penal Burden
To resolve long-pending Section 14B (penal damages) cases, EPFO introduced the Vishwas Scheme, offering a one-time settlement opportunity.
• Damages capped at 1% per month, with graded lower rates for shorter delays.
• Scheme valid for 6 months (extendable by another 6).
• Applicable to pending, adjudicated, and pre-adjudication cases.
• Once dues are cleared, related litigations will be abated.
✅ HR Action Point : Identify old or disputed PF cases eligible under this window — it’s a valuable chance to close compliance gaps without prolonged litigation.
🔹 3. Doorstep Digital Life Certificate (DLC) for Pensioners
EPFO has partnered with India Post Payments Bank (IPPB) to deliver doorstep DLC services for EPS-95 pensioners — free of cost to beneficiaries.
✅ HR Action Point: Assist retirees or dependents in leveraging this digital convenience to ensure uninterrupted pension disbursement.
🔹 4. EPFO 3.0 – The Digital Transformation Framework
EPFO is transitioning to a hybrid digital architecture under “EPFO 3.0,” aimed at improving speed, accuracy, and transparency.
Major upgrades include:
• New Return Filing System (CITES): Simplified employer filings and automated validations.
• Revamped User Management Module: Secure and flexible interface for establishments.
• Upgraded e-Office (v7): Faster workflows and paperless documentation.
• SPARROW Integration: Digital Annual Performance Appraisal Reporting for staff.
✅ HR Action Point: Prepare for smoother claim submissions and faster settlements as digital modules are implemented.
🔹 5. Strengthened Fund Management
Four fund managers have been appointed to handle EPFO’s debt portfolio for the next five years, enhancing professional governance and portfolio stability.
✅ HR Action Point: Stable fund management supports sustainable interest rates — a key factor in employee retention and long-term satisfaction.
🔹 6. Alignment with National Job Creation Goals
The Board reviewed progress under PM-Viksit Bharat Rozgar Yojana (PM-VBRY) — a major employment-linked incentive program targeting 3.5 crore jobs and a ₹99,446 crore outlay between August 2025 and July 2027.
✅ HR Action Point: Evaluate opportunities to onboard eligible new hires under PM-VBRY to access potential incentives.
🌍 7. Global Recognition & International Social Security Leadership
EPFO’s achievements were also recognised at the international level:
• India has secured membership in the Bureau of the International Social Security Association (ISSA) — the apex global body for social security systems.
• EPFO now enjoys the highest possible voting rights in the ISSA General Assembly.
• This milestone reinforces India’s role as a global leader in social security digitisation and inclusion.
✅ HR Insight: This international recognition enhances trust in India’s social security governance, supporting global mobility and cross-border social protection dialogues.
🧩 The Takeaway for HR & Compliance Professionals
The 238th CBT meeting represents a shift from compliance-heavy processes to member-centric digital empowerment.
For organisations, this means:
• Revisit and align HR policies with new EPFO guidelines.
• Audit legacy cases for Vishwas Scheme eligibility.
• Train HR staff on the updated digital modules.
• Strengthen employee communication around EPF reforms.
by Kapgrow Corporate Advisory Services Private Limited.
Kapgrow is a corporate advisory firm providing expert services in HR, Legal, POSH, Compliance, and Corporate Training to drive organisation growth and excellence.
