The government in Lok Sabha has shared a detailed update on reforms under EPFO 3.0, such as expansion in its subscriber base, faster claim settlement and the status of pension-related proposals among others. Responding to an unstarred question, Minister of State for Labour and Employment, Shobha Karandlaje, outlined key developments taken under EPFO 3.0 reforms, including faster claim settlement, simplified processes, progress on employment-linked schemes, etc. The Minister also addressed the question whether it has a plan to increase the amount of the minimum pension under the Employees’ Pension Scheme (EPS-95).
Jashubhai Bhilubhai Rathva, member of Parliament, asked details of the key reforms undertaken by the government under EPFO 3.0, including the rollout of the Centralised Pension Payment System (CPPS) for faster and error-free pension disbursal, autoclaim settlement up to Rs 5 lakh and simplified transfer procedures.
Centralised Pension Payments System (CPPS) module statusRevealing the current status of CPPS, Karandlaje stated that as of January 1, 2025, all EPFO field offices have fully adopted the Centralised Pension Payments System (CPPS) module. By establishing a centralised disbursement system, CPPS provides benefits to over 70 lakh pensioners every month, said the Minister.Regarding EPF auto claim settlement numbers, Karandlaje stated that 3,52,20,199 claims up to the amount of Rs 5 lakh were settled in auto mode during the current fiscal year until February 25, 2026.
“The auto claim settlement system has significantly improved efficiency of claim settlement. 71.37% of total advance claims have been settled in auto mode in the current financial year disbursing an amount of around Rs 51,620 crores,” said Karandlaje.
Transfer of EPF accountFurther, the simplification of the transfer process of EPF accounts on change in employment, as on February 25, 2026, a total of 70,54,895 auto transfer claims were auto triggered without employees’ and employers’ intervention, the Minister said in Parliament.
“This initiative removes the need for members to manually file transfer claims and eliminates the requirement of routing the request through the employer in the majority of cases. Also, the requirement of the approval of either the past or the present employer for the transfer claims has been dispensed in KYC compliant accounts. As on February 25, 2026, 21,39,247 transfer claims were submitted by employees without their employer’s intervention.
What is EPF 3.0?Project EPFO 3.0 is a significant digital transformation initiative by EPFO, aimed at enhancing services. This initiative is designed to streamline processes and reduce paperwork, making it easier for members to manage their social security accounts, faster claims processing and managing all member services from a single unified platform. Claims which clear the checks and validations for risk management are designed to be processed in auto mode without manual intervention, thereby significantly reducing the time taken for manual settlement from up to 20 days to less than three days.