Technology must be backed by process reforms: EPFO CEO

Published 2 August 2026 · tech

The Employees’ Provident Fund Organisation (EPFO) has notified new rules for the Employees’ Provident Fund (EPF) Scheme, the Employees’ Pension Scheme (EPS) and the Employees’

The Employees’ Provident Fund Organisation (EPFO) has notified new rules for the Employees’ Provident Fund (EPF) Scheme, the Employees’ Pension Scheme (EPS) and the Employees’ Deposit Linked Insurance (EDLI) Scheme under the Code on Social Security, 2020, while rolling out a series of measures to simplify claim settlement and improve service delivery. The changes come amid continuing debate over higher pension, social security coverage and the financial sustainability of the pension fund. At The Hindu MIND, EPFO Chief Executive Officer (CEO) Ramesh Krishnamurthi speaks to A. M. Jigeesh about the reforms and the thinking behind them. There is an argument, often described as techno-solutionism, that technology is the answer to every problem. Whether it is question of paper leaks or issues in EPFO management, we are repeatedly told that technology will bring transparency. What are your views on this? How has your background in technology helped you steer the EPFO and undertake major reforms, including the revamp of the income tax system? Technology is not a solution in itself; it is an enabler. Any technological intervention must be supported by changes in processes and the legal framework. EPFO settled nearly six crore claims in 2024-25 and 8.3 crore in 2025-26 — a 30-35% increase with almost the same manpower. We expect to settle nearly 10 crore claims this year. Is it sustainable? No. One major problem was our decentralised database. Each of the 123 Regional Offices maintained its own database. We have now centralised them into a single database. While members continue to have multiple member IDs, all are now linked under one Universal Account Number (UAN) in one database. It has become easy for us to identify your total balance and complete service history. The second challenge was that the claim withdrawal process was based on a legal framework which had different periods of eligibility. The amount that you could withdraw would vary based on your kind of need. We simplified both the legal framework and the process. There is now a uniform eligibility period of 12 months for all claim categories. We have also merged the employee’s and employer’s shares for withdrawal purposes, since the entire amount belongs to the member. Withdrawal eligibility has been simplified to either 75% of the total balance or 100% of the eligible balance after accounting for the minimum balance requirement. Members may withdraw the amount in one instalment or in multiple withdrawals, without restrictions. These reforms required changes to both the process and the legal provisions governing the scheme. The simplified withdrawal rules have now been incorporated into the EPFO software. Simplicity, I believe, is the key. What are the biggest shifts in EPFO’s service? Is EPFO being transformed into a fully digital, paperless and member-centric organisation? The credit for this transformation goes entirely to our Minister of Labour and Employment, Mansukh Mandaviyaji.