The Union Minister said that after the launch of EPFO 3.0, EPFO will issue ATM cards to its members. He further informed that the initial phase of website and system improvements will be finalised by the end of January 2025.
A big update has come out for EPF account holders. Union Labor Minister Mansukh Mandaviya has announced that the Employees’ Provident Fund Organization (EPFO) is set to launch its new software system, EPFO 3.0, by June this year. Speaking to reporters on Thursday, Mandaviya said that the new system will provide facilities equal to the banking systems in the country. Also, the website interface will be more user-friendly.
The Union Minister said that after the launch of EPFO 3.0, EPFO will issue ATM cards to its members. He further said that the initial phase of improvements to the website and system will be finalized by the end of January 2025. EPFO 3.0 is set to improve the experience of Employees’ Provident Fund (EPF) members. It aims to improve accessibility, streamline processes and introduce new features to give employees more control over their retirement funds.
When will you be able to withdraw money from ATM?
With the new EPF withdrawal guidelines, employees may soon get the ability to access their EPF savings faster using ATM cards. This will enable them to effectively manage financial emergencies or unexpected expenses. Last month, Labor Secretary Sumita Dawra announced that EPFO customers will be able to withdraw their PF through ATM by the year 2025. Dawra said that the Ministry of Labor is currently working on enhancing IT services to benefit the employees of India associated with EPFO.
How much money can be withdrawn?
According to Dawra, all members and insured persons will be able to withdraw their Provident Fund (PF) through ATM. Recent media reports suggest that withdrawals will be limited to 50% of the total balance in the beneficiary’s account. Similarly, the EPFO is considering implementing a new scheme to introduce more flexibility in pension contributions. Under this proposal, employees will have the option to contribute more or less than the current 12 percent limit to the Employees’ Pension Scheme (EPS).
Mobile app will also be available
Like mobile banking, a special app is also being developed for EPF accounts through which members can view monthly contributions to their account, pension fund, contributions from previous jobs etc. Not only this, they can also monitor their PF account through mobile app.
How much is the contribution now?
Currently, both the employee and the employer contribute 12 per cent of the employee’s basic salary, dearness allowance and any retaining allowance to the EPF. The entire employee’s contribution is allocated to the EPF, while the employer’s 12 per cent contribution is divided as 3.67 per cent to the EPF and 8.33 per cent to the EPS. Additionally, the Government of India contributes 1.16 per cent to the employee pension for those earning less than Rs 15,000.
