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0 New Delhi, August 30, 2025 – The Employees’ Provident Fund Organisation (EPFO) has announced a significant update to its pension policy, effective 2025. Under the new rule, employees who have served for as little as one month will now be eligible for pension benefits, marking a major shift from the previous regulations.
Previously, the EPFO policy stipulated that an employee’s service period was considered “Zero Complete Year” if they worked for less than six months and subsequently left their job. This meant that their contributions to the Employees’ Pension Scheme (EPS) were not counted toward pension eligibility, leaving them with only their Provident Fund (PF) money upon exit. The change has been widely welcomed as a progressive step to ensure financial security for a broader range of workers.
The revised rule eliminates the six-month minimum service threshold, allowing even short-term employees to build pension credits. This adjustment is expected to benefit a large number of workers, particularly those in temporary or seasonal roles, who were previously excluded from long-term retirement benefits. Industry experts suggest that this move could encourage greater participation in formal employment and enhance social security coverage.
The EPFO has not yet released detailed guidelines on the implementation of this change, including how pension contributions will be calculated for such brief tenures. However, officials have assured that further clarifications will be provided soon to employers and employees alike.
This policy shift reflects the government’s ongoing efforts to strengthen the social security framework in India. As the nation continues to navigate economic challenges, such reforms are seen as a vital step toward supporting the workforce and ensuring equitable retirement benefits for all.
More details on the implementation and eligibility criteria are awaited, and stakeholders are encouraged to stay updated through official EPFO channels.
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