New EPFO portal to enable auto interest credit, centralised database

The Employees’ Provident Fund Organisation (EPFO) has launched a revamped portal with a centralised database by merging information across all regional offices. The portal enables automated processes, including crediting of interest, claim verification and informing members about the amount they are eligible to withdraw, aimed at reducing claim rejection rates.

Labour and Employment Minister Mansukh Mandaviya on Wednesday said the annual interest of Rs 1.44 lakh crore will be auto-processed on the new portal and verified by field authorities before being credited to 34 crore EPF accounts by July 15.

“Field verification is currently ongoing to ensure that any account does not receive incorrect interest. After the process is over, over 34 crore EPF accounts will receive interest worth over Rs 1.44 lakh crore by July 15. Earlier, interest credit used to happen in October or November after the rates were announced,” Mandavya said at a press briefing.

This comes after the Ministry of Labour and Employment implemented the CITES (Centralised IT Enabled Services) project, an initiative to modernise EPFO’s service delivery through automation and rule-based processing. The Ministry said the project is designed to improve EPFO’s operational efficiency.

“Before CITES, EPFO had a decentralised architecture with separate databases at each field office. CITES has now enabled a single centralised architecture with one national database. EPFO has completed the process of migrating its entire database of member records to the new centralised database. Earlier, the services were tied to a particular regional office. Now, a member’s service request can be processed from any authorised location across the country,” Mandavya said.

This centralised database will be helpful for employees who move across cities during their employment. For instance, if an employee has worked in Chennai and moves back to their hometown in West Bengal, they will be able to access their records and resolve any issues at the EPFO office in West Bengal instead of travelling to the Chennai regional office.

The Ministry said claim payments will be processed through a centralised payment architecture and routed through faster electronic payment channels, ensuring secure, efficient and timely credit of settlement amounts directly into members’ bank accounts on the day of settlement.

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“Under the revised system, interest on final PF settlements will now be calculated up to the date of payment authorisation. Earlier, interest was calculated only up to the last day of the previous month. This ensures that members receive the benefit of additional interest for the intervening period,” a statement said. The EPFO’s Central Board of Trustees had recommended an interest rate of 8.25% for financial year 2025-26 in March, which was ratified by the Ministry of Finance last month.

In the new portal, members will be able to view their membership details, provident fund balances, claim status, pensionable service records and benefits availed. This, the Ministry said, will ensure transparency and provide access to information about their PF accounts and claim submissions. “Earlier, members’ information was not available on a unified portal and remained scattered across different systems,” the Ministry said.

Member claims will undergo automated pre-validation before processing at EPFO offices, and any deficiencies or discrepancies will be identified upfront and communicated to members through SMS and the portal, helping reduce claim rejections and improve first-time acceptance rates. “Members will also be able to know what the eligible amount is, which they can apply for withdrawal from their PF account under the different types of withdrawals permitted and can make informed choices,” the statement said.

In October 2025, the EPFO announced a slew of changes to its withdrawal norms by streamlining the withdrawal categories from 13 to three — essential needs (illness, education, marriage); housing needs; and special circumstances, along with an introduction of a minimum balance of 25%. Members can withdraw funds in case of illness of self and family members, up to 100% of the eligible member balance, after completion of 12 months of total membership.

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The 100% eligible member balance means withdrawal of 75% of the total funds, as 25% is a mandatory minimum balance requirement. The full 100% amount can be withdrawn after remaining unemployed for one year.

Members can also withdraw money for education of self and family members after 12 months of membership, subject to a maximum of 10 withdrawals during their membership. For marriage of self and family members, members can withdraw up to 100% of the eligible member balance, with a maximum of five withdrawals during their membership.

For housing-related requirements, a member may be allowed partial withdrawal for the purchase of a flat or house; site for construction of a house; construction of a house; repayment of a home loan obtained for purchase, construction of a flat or house or for acquisition of a site; and additions, alterations, renovations or improvements to an existing house or flat. The condition is that such withdrawals will be limited to 75% of total funds after completion of 12 months of total membership and partial withdrawal not exceeding five times.