Published 17:58 IST, November 29th 2024
EPFO 3.0: PF Withdrawal From ATMs? What We Know So FarĀ
This initiative, expected to be operational by mid-2025, aims to simplify the withdrawal process.
The central government is preparing to launch EPFO 3.0, following the introduction of PAN 2.0. This new version aims to offer more benefits to employees, including the possibility of increasing their Provident Fund (PF) contributions beyond the current 12% limit. Employees would have more control over their savings, allowing for contributions above the set cap, without adding extra financial burden on employers, whose contributions will remain fixed.
ATM-based PF Withdrawals by 2025
EPFO 3.0 will also include a feature to allow PF withdrawals via ATMs. This initiative, expected to be operational by mid-2025, aims to simplify the withdrawal process. The government is planning to issue debit cards to facilitate these ATM-based withdrawals, making it more convenient for employees to access their PF savings in cash.
EPS-95: Contributions and Benefits
The government is also considering changes to the Employeesā Pension Scheme (EPS-95). Currently, employee contributions go entirely into the EPF account, while employer contributions are split between EPF and EPS-95. Under the proposed changes, employees may be able to directly contribute to EPS-95, potentially increasing their pension benefits. At any moment, employees will be permitted to deposit any amount beyond the barrier. To avoid placing an undue burden on the employer, the employer contribution will be set according to the employee's salary.
EPF Contributions for Pension
Additionally, the government is looking to raise the wage ceiling for EPF contributions for the first time in a decade. The new limit could be raised from Rs 15,000 to Rs 21,000, which would ensure better retirement benefits for employees. Under 2014 EPF revision, the cap was raised from Rs 6,500 to Rs 15,000.
Updated 18:02 IST, November 29th 2024