New software by June, ATM cards will also be issued… Big update for EPFO ​​members

New Delhi: A big update has come for EPF account holders. Union Labor Minister Mansukh Mandaviya has announced that the Employees Provident Fund Organization is 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 facilities equal to 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 said that the initial phase of improvements 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 members. It aims to improve accessibility, 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 get the ability to access their EPF savings faster using ATM cards. This will enable them to effectively manage financial emergencies or unexpected expenses. Last month, Labor Secretary Sumita Dawra announced that EPFO ​​​​customers will be able to withdraw their PF through ATMs by the year 2025. Dawra said that the Ministry of Labor 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How much money can be withdrawn?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 introduce more flexibility in pension contributions. Under this proposal, employees will have the option to contribute more or less than the current 12 percent limit to the Employees’ Pension Scheme (EPS).

Mobile app will also be available
Like mobile banking, a special app is also being prepared for EPF accounts through which members can see the monthly contributions coming into 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?
Currently, both the employee and the employer contribute 12 percent of the employee’s basic salary, dearness allowance and any retaining allowance to EPF. The entire contribution of the employee is allocated to EPF, while the employer’s 12 percent contribution is divided as 3.67 percent in EPF and 8.33 percent in EPS. Apart from this, the Government of India contributes 1.16 percent to the employee pension for those earning less than Rs 15,000.