EPFO News: EPF subscribers may be issued an ATM card similar to a debit card so that they can withdraw the money deposited in the Provident Fund from the ATM.
EPFO 3.0 Update: The central government is preparing to revamp the Employees Provident Fund Organization (EPFO), which runs a social security scheme for 6 crore employees of the organized sector. Many new benefits can be announced for EPFO subscribers. The government can announce EPFO 3.0 in which the limit of contributing 12 percent of the basic salary to the Provident Fund for employees can be abolished. Employees will be able to contribute as much as they want to the Provident Fund according to their saving capacity. Also, account holders can be given the facility to withdraw money deposited in the Provident Fund from ATM.
Freedom to contribute more to EPF
According to sources in the Ministry of Labor and Employment, the government is seriously preparing to bring EPFO 3.0 in which many new announcements can be made for EPF subscribers. The most important of these is to increase the limit of employees’ contribution to the Provident Fund. At present, employees have to contribute 12% of their basic pay to the Provident Fund. But the government can eliminate this limit. Employees can deposit as much money in their EPF account as they want and at any time as per their saving capacity. Its purpose is to provide subscribers with the option to save as much as possible. This amount can be converted into an option to give more pension to the subscribers on retirement. However, there will be no change in the contribution of employers. The Ministry of Labor is discussing this formula.
You will be able to withdraw Provident Fund from ATM!
The government can make another big announcement for EPFO subscribers. EPF subscribers can be issued an ATM card similar to a debit card so that they can withdraw the money deposited in the Provident Fund from the ATM. That is, the government is preparing to provide the facility to the employees to withdraw the hard-earned money deposited in the Provident Fund from the ATM. In this, subscribers can be given the option to withdraw 50 percent of the amount deposited in the Provident Fund. According to sources, the government can announce this new policy of EPFO in the new year 2025 and EPFO 3.0 can be implemented in May-June 2025.
EPFO IT system will be improved
The Ministry of Labor is preparing to make huge improvements in the IT system of EPFO so that employees can do any transaction easily. This improvement is being prepared in two phases. The system reforms under EPFO 2.0 will be completed next month in December 2024, which will resolve 50 percent of the problems in the system. EPFO 3.0 will be completed by May-June 2025, which also includes improvements in the IT system. Actually, the government’s aim is to make the functioning of EPFO according to international standards.
