EPFO Update: A big update has come out for EPFO account holders. Union Labor Minister Mansukh Mandaviya has announced that EPFO is all set to launch its new software system, EPFO 3.0, by June this year. Speaking to reporters on Thursday, Mandaviya said that the new system will provide proper facilities to the banking system 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 introduce ATM cards for its members. The initial phase of website and system improvements will be finalized by the end of January, 2025. EPFO 3.0 is set to improve the experience of EPF members. It aims to improve access, streamline the process and introduce new features to give employees more control over their retirement funds.
When can PF be withdrawn from ATM?
With the new EPF withdrawal guidelines, employees will soon be able to get instant access to their EPF savings using ATM cards. This will enable them to manage financial emergencies or unexpected expenses effectively. Last month, Labor Secretary Sumita Dawra had announced that EPFO subscribers will be able to export their PF through ATMs by 2025. The Labor Ministry is currently working on enhancing IT services to benefit Indian employees belonging to EPFO.
How much money can be withdrawn?
According to the Labor Secretary, all members and insured persons will be able to withdraw PF through ATM. Up to 50 percent of the total outstanding amount can be withdrawn from the beneficiary’s account. Accordingly, EPFO is considering implementing a new scheme to make pension contributions more flexible. Under the proposal, employees will have the option to contribute more or less to the Employees’ Pension Scheme (EPS) above the existing limit of 12 per cent.
mobile app feature
Like mobile banking, a special app is also being developed for EPF accounts, through which members can view things like monthly contributions coming into their account, pension funds, contributions from previous jobs, etc. Not only this, they can also keep an eye on their PF account through mobile app.
What is the Current Status?
At present, both the employee and the employer contribute 12 per cent 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 12 per cent contribution is divided as 3.67 per cent in EPF and 8.33 per cent in EPS. Additionally, the Government of India has allocated Rs. Employees contribute 1.16 per cent to pension for those earning less than Rs 15,000.
