If you have an EPF account then withdrawing money will now become very easy and simple. Starting this April you will be able to withdraw your deposited amount without much documentation or paperwork. The Employee Provident Fund Organisation (EPFO), is the statutory body that manages India’s provident funds and social security and is under the administrative control of Ministry of Labour and Employment.
The organization effects changes on a regular basis for the benefit of its members. It is estimated that there are almost eight crore EPF beneficiaries. Now, it is mulling over upgrading to a new version called EPFO 3.0 and is expected to bring four major changes that will immensely benefit the employees.
As per reports, the four major changes that will be effected in the EPFO 3.0 are – withdrawal of Provident Fund (PF) money from ATMs, members can contribute more than the current 12% limit, conversion of PF savings into pension and increased salary ceiling for EPF Scheme.
Likely Withdrawal of PF at ATMs
Once the EPFO 3.0 is implemented, the Labour Ministry is expected to issue EPFO cards to the subscribers, somewhere between May and June 2025, which they can use to withdraw their PF money at the ATMs. However, they can withdraw only upto 50% of their total deposits.
Members can now save more
As per media reports, the Labour Ministry is expected to give the option to the employees to contribute more than the current 12% cap on contributions. They can contribute as much as they want to increase their retirement savings. However, the rules make it clear that the employers will not have the burden of the additional contributions. The employer’s contribution will be fixed based on the salary of the employee.
Conversion of PF savings into pension
This is another very important step that is being planned by the EPFO, but it will be voluntary. The step will be implemented with an aim to provide the employees an opportunity to have a better financial security after their retirement. The government is planning to offer employees the option to convert their Provident Fund savings into a pension. However, this will be done only with the employee’s prior approval and consent.
Increased salary limit for EPF Scheme
The Central Government is considering increasing the salary limit for the eligibility of the Employees’ Provident Fund (EPF) scheme. The change was last implemented in September 2024 when the limit was increased from Rs 6,500 to Rs 15,000. It is to be seen what changes will be implemented this year to the salary limit. In addition to this, it is to be seen when the above stated are implemented.
NB: However it is likely that, the withdrawal can be done only in case of medical and other emergencies. The withdrawals will likely be allowed from March or April.
