From pension disbursal system to auto settlement, how EPFO 3.0 reforms have improved user experience
EPFO 3.0 reforms, launched in 2025, are modernizing the pension system with features like auto-settlement and a centralized payment system, improving user experience.Summary
The Employees’ Provident Fund Organisation (EPFO) initiated the EPFO 3.0 project in 2025 to modernize its digital infrastructure and streamline operations. Key reforms include the implementation of a Centralised Pension Payment System (CPPS) accessible to seven million beneficiaries as of January 2025, and an auto-settlement mode which processed over 3.52 million claims up to February 2026. The auto-settlement threshold was increased from ₹1 lakh to ₹5 lakh to reduce manual intervention. Furthermore, over 2.13 million transfer claims were processed without employer intervention, a significant improvement from the previous manual system.
The EPFO has maintained the interest rate on PF deposits at 8.25% for the 2025-26 period. A one-time Amnesty Scheme was also authorized to address compliance issues for income tax-recognized trusts.
Additional improvements include a simplified Standard Operating Procedure (SOP) for EPF Exemptions and the notification of new social security schemes under the Code on Social Security, 2020. While some features, such as EPF withdrawals via UPI, are still pending, these reforms collectively aim to enhance the user experience for EPFO subscribers.
(Source：Google News)