The EPFO has announced Some Significant changes in guidelines and policies for PF members. Most of these changes are likely to be take effect in the upcoming year.
Here are the new EPFO rules
- Facility to PF Contribution withdrawal from ATM.
- EPFO IT System Upgrade
- Changes in the Employees contribution limit
Facility to PF Contribution withdrawal from ATM.
The Employees’ Provident Fund Organization (EPFO) is planning to introduce a new facility in 2025 that will allow its members to withdraw their Provident Fund (PF) money directly from ATMs, his new system will involve the issuance of dedicated PF withdrawal cards that will function similarly to regular bank ATM cards. Withdrawals will be limited to 50% of the PF balance to ensure fund availability for emergencies.
This new rule aims to simplify the process for PF account holders to access their funds conveniently through ATMs, providing more flexibility in managing their finances. The EPFO’s initiative reflects a shift towards modernizing and improving the withdrawal experience for its members.
EPFO IT System Upgrade
The Employees’ Provident Fund Organisation (EPFO) is currently undergoing an IT system upgrade to enhance its infrastructure, allowing PF claimants and beneficiaries to withdraw their deposits with minimal human intervention.
Union Labour Secretary Sumitra Dawra mentioned that the upgraded infrastructure is expected to speed up processes and enhance customer service, ultimately providing a smoother experience for EPFO subscribers.
Upon the completion of the IT infrastructure upgrade members will experience quick claim settlements and well enhanced transparency and less fraud cases. Now it takes 7 to 10 days to process and settle the PF Withdrawal amount.
Changes in the Employees contribution limit
A significant change will be removal of the EPF contribution limit for employees, presently employee contribute 12% their basic salary towards their EPF account every month. There is a proposal to considering allowing employees to contribute based on their actual salary instead of the EPFO fixed amount Rs.15000.
Upon the implementation of this policy, employees will be accumulating a larger fund on retirement and resulting in a higher monthly pension.
