New Delhi
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 ready to launch its new software system, EPFO 3.0, by June this year. Talking to journalists, Mandaviya said that the new system will provide facilities at par with 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 informed that the initial phase of improvement in 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 access, 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 have the ability to access their EPF savings faster using an ATM card. With this, they will be able to manage financial emergencies or unexpected expenses effectively. Last month, Labor Secretary Sumita Dawra had announced that EPFO customers will be able to withdraw their PF through ATM by the year 2025. Dawra said that the Labor Ministry 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How much money can be withdrawn?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, EPFO is considering implementing a new scheme to offer more flexibility in pension contributions. Under this proposal, employees will have the option to contribute more or less to the Employees’ Pension Scheme (EPS) above the existing 12 percent limit.
There will also be facility of mobile app
Like mobile banking, a special app is also being prepared for EPF accounts, through which members can see things like monthly contributions coming 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?
At present, both the employee and the employer 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 EPF, while the employer’s contribution of 12 per cent is divided as 3.67 per cent in EPF and 8.33 per cent in EPS. Additionally, the Government of India contributes 1.16 percent towards employee pension for those earning less than Rs 15,000.
