Subscribers of the Employees’ Provident Fund Organisation (EPFO) will be able to withdraw cash from their provident fund via ATMs. This is a measure introduced as part of the Labour Ministry’s efforts to enhance services offered to EPFO subscribers.
The New Year will see beneficiaries being able to access their fund with great ease through ATMs. The subscribers will be given a card that will serve as a debit card and allow them to withdraw money from their fund via ATMs. However, not more than 50 per cent of their deposit can be withdrawn. The information technology systems are being improved and upgraded to make this happen in 2025.
The process of settling claims will be made faster and more convenient for everyone.
With the EPFO 3.0 version, EPFO will offer more employee-centric initiatives. The Ministry of Labour is mulling over reforms in EPFO services, which may result in the 12 per cent cap in employee’s contribution being removed. This means, EPFO members will be able to gain from higher deposits and pensions.
Employees will be free to deposit or invest more money (beyond the cap) whenever they wish to. The contribution of the employer, however, remains the same, that is, fixed on the salary of the employee. That means the employer will not feel any excess financial pressure.
Additionally, employees will also be given the option to convert their provident fund balance into a pension if they choose to.
