India’s provident fund system is gearing up for a significant overhaul. By mid-2025, Employees’ Provident Fund Organisation (EPFO) subscribers may gain the ability to withdraw funds directly from ATMs through a debit card-style facility. Withdrawals will be capped, ensuring retirement savings remain protected while offering liquidity for emergencies.
This initiative is reportedly part of the government’s ambitious EPFO 3.0 plan, aimed at modernizing services and giving subscribers more control over their savings. Alongside ATM withdrawals, the Labour Ministry is said to be considering removing the 12% cap on employee contributions, enabling workers to save more in line with their financial goals.
Reports also suggest that subscribers could soon have the flexibility to deposit amounts beyond the current threshold at any time. While employer contributions would remain salary-based for stability, employees may gain the freedom to top up their accounts, enhancing their savings without restrictions.
Read More: EPFO 3.0: Subscribers could be allowed to withdraw PF using ATMs? Here’s what we know
Additionally, the government is working on reforms to the Employees’ Pension Scheme 1995 (EPS-95). Currently, 8.33% of the employer’s contribution is allocated to EPS-95. The proposed changes may allow employees to contribute directly to the scheme, enabling them to boost their pension benefits.
By tackling long-standing concerns about limited access and inflexibility in the EPFO system, these measures aim to balance immediate liquidity needs with long-term financial security. BT could not independently verify the reports.
Read More: EPFO offers up to Rs 50,000 benefit on your EPF account: Here’s how to avail
The EPFO 3.0 reforms are expected to be officially announced by early 2025, marking a transformative shift in how India’s workforce manages and utilizes its savings.
