From automatic PF transfer to faster settlement: Five big EPFO changes in 2026 that salaried employees should know

The Employees’ Provident Fund Organisation (EPFO) has introduced several updates this year that could affect how salaried employees access their PF money, transfer accounts after changing jobs and use other EPF-related services.

Some of these updates are already in effect, while others are part of the retirement fund body’s broader push towards a more digital and streamlined system. Here are five important EPFO developments from this year that salaried employees must keep in their radar.

Auto-settlement benefit to be extended

EPFO plans to extend its auto-settlement process to include final PF withdrawal claims, a top official at the retirement body told PTI earlier.

“We are also going to initiate, as far as feasible, auto-settlement for now…which was (available) only for advances. Now we are going in for auto-settlement of final withdrawals,” Ramesh Krishnamurthi, Central Provident Fund Commissioner at the EPFO said in an industry event in May.

As of now, only advance PF claims of up to ₹5 lakh are processed through the auto-settlement mode. However, the retirement fund body is now looking to extend the same system to final withdrawals as well, making the process quicker and hassle-free for members.

UAN activation shifted to Umang app

New or existing EPFO members will no longer be able to activate or generate their Universal Account Number (UAN) through the unified member portal as both services have been shifted to the Umang app with Aadhaar-based Face Authentication (FAT) requirement.

The overhaul follows a major database consolidation and software upgrade that, according to EPFO, is aimed at making its online services faster and more reliable.

PF transfer process becomes automatic

EPFO has made it easier for employees to transfer their PF balance after they switch employers. The entire process is expected to become automatic for Aadhaar-linked and KYC-compliant UAN holders, as per EPFO’s website.

The introduction of this provision is significant as it eliminates the need to submit separate transfer applications, thus reducing paperwork and additional hassle. Previously, transfer of PF accounts required approvals from the previous employer, the new employer, as well as the EPFO office.

Faster EPF and EPS claim settlement

The retirement fund body expects most fresh PF withdrawal claims filed by members to be settled on the same day or within a maximum of two days, Krishnamurthi said in an industry summit held last month.

EPS 2026 also sets a strict 20-day timeline for processing eligible pension claims. If EPFO fails to settle a claim within this period without a valid documented reason, the delayed amount will attract 12% annual interest, which can be recovered from the responsible commissioner.

UPI and ATM-based PF withdrawal

Provident fund claim settlement through the BHIM app is expected to be introduced soon, which will allow claims to be credited directly to the UPI-linked bank accounts of members.

The framework is expected to be rolled out within about a month, Krishnamurthi announced in July, along with the faster EPF settlement target. This means, the facility may be introduced this month, though no further clarity or update on this development has been announced yet.

“As our Minister has said, the claim settlement process we will be introducing through the BHIM app and the claim will be settled through the UPI-linked bank account. So this framework will also get implemented in maybe a maximum a month,” he said during the summit.