In a landmark move aimed at expanding social security coverage, the Employees’ Provident Fund Organisation (EPFO) has notified a new rule allowing employees to qualify for pension benefits even after completing just one month of service under the Employees’ Pension Scheme (EPS), 1995.
The decision, approved by the Central Board of Trustees and ratified by the Ministry of Labour and Employment, marks a major shift from the earlier requirement of six months of continuous service to be eligible for pension enrollment.
What the New Rule Says
- Minimum Service Requirement: Reduced from 6 months to 1 month
- Eligibility: Applies to all employees contributing to EPS via EPF
- Effective Date: September 1, 2025
- Impact: Expected to benefit gig workers, contractual staff, and short-term employees in both public and private sectors
Why It Matters
This reform is part of EPFO’s broader push to make pension access more inclusive, especially for India’s growing informal and gig workforce. It also aligns with the government’s vision of universal social protection under the Code on Social Security, 2020.
According to EPFO officials, the change will ensure that even short-term contributors are not left out of the pension net, and their service period will be counted toward future pension calculations if they rejoin the workforce later.
Expert Take
Labour economists have welcomed the move, calling it a “progressive step” toward portability and continuity of benefits. Trade unions have urged EPFO to now focus on simplifying withdrawal and transfer processes for mobile workers.