Union Labour Minister Mansukh Mandaviya announced that the Employees Provident Fund Organisation (EPFO) is set to introduce its advanced software system, EPFO 3.0, by June this year. Speaking to reporters on Thursday, Mandaviya said that the new system will offer a level of efficiency comparable to the banking systems in the nation, with a more user-friendly website interface.
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The minister announced that EPFO will issue ATM cards to its members following the launch of EPFO 3.0. He further shared that the initial phase of website and system enhancements will be finalized by the conclusion of January 2025.
EPFO 3.0 is poised to enhance the experience of Employees’ Provident Fund (EPF) members. The focus is on improving accessibility, streamlining processes, and introducing new features to empower employees with greater control over their retirement funds. With the implementation of new EPF withdrawal guidelines, employees may soon have the ability to swiftly access their EPF savings using an ATM card, allowing them to manage financial emergencies or unforeseen expenses effectively.
Last month, Labour Secretary Sumita Dawra announced that EPFO subscribers will have the ability to withdraw their PFs through ATMs by the year 2025. Dawra explained that the Ministry of Labour is currently working on enhancing the IT services to benefit the workforce throughout India who are affiliated with the EPFO.
As per Dawra, all subscribers and insured individuals will be able to withdraw their Provident Fund (PF) through ATMs. Recent media reports indicate that withdrawals will be restricted to 50% of the total balance in the beneficiary’s account.
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Similarly, the EPFO is considering implementing a new scheme to allow for more flexibility in pension contributions. Under this proposal, employees will have the option to contribute either more or less than the current 12 percent limit to the Employees’ Pension Scheme (EPS).
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Currently, both employees and employers contribute 12 percent of the employee’s basic salary, dearness allowance, and any retaining allowance to the EPF. The employee’s entire contribution is allocated to the EPF, while the employer’s 12 percent contribution is divided as 3.67 percent to the EPF and 8.33 percent to the EPS. Additionally, the Government of India provides a 1.16 percent contribution towards an employee’s pension for those earning below Rs 15,000.
