EPFO 3.0: Depositors can now withdraw money through ATMs from June
As per the reports one of the four major changes in the new EPFO 3.0 rules is withdrawal of PF money from ATMs.
The Employee Provident Fund Organisation (EPFO), the statutory body that manages India’s provident funds and social security and is under the administrative control of Ministry of Labour and Employment, time and again comes up with changes for the benefit of its members. Now, it is mulling over upgrading to a new version called EPFO 3.0 and is expected to bring four major changes that will immensely benefit the employees.
As per the reports, the four major changes that can be found in the EPFO 3.0 are – withdrawal of provident fund (PF) money from ATMs, members can contribute more than the current 12% limit, conversion of PF savings into pension and increased salary ceiling for EPF Scheme.
Withdrawals of PF at ATMs:
- Once the EPFO 3.0 is implemented, the labour ministry is expected to issue EPFO cards to the subscribers, somewhere between May and June 2025, which they can use to withdraw their PF money at the ATMs. However, they can withdraw only upto 50% of their total deposits.
Members can contribute more:
- As per the media report, the labour ministry is expected to give the option to the employees to contribute more than the current 12% cap on contributions. They can contribute as much as they want to increase their retirement savings. However, the employers will not have the burden of the additional contributions as it will be fixed based on the employees’ salary.
Conversion of PF savings into pension:
- With an aim to provide the employees an opportunity to have a better financial security after their retirement, the government is also planning to offer them the option to convert their PF savings into a pension. However, this will be done only with the employee’s approval.
Increased salary limit for EPF Scheme:
- The central government is also considering to increase the salary limit for the eligibility of the Employees’ Provident Fund (EPF) scheme, which, if implemented, would come 10 years after it did so last time, the etnownews.com reported adding that it was last time increased in September 2024 when from Rs 6500 to Rs 15,000.
