Major Changes in EPFO: Withdraw PF from ATMs Soon

PF New Rule: The central government may implement significant modifications to the Employees Provident Fund Organization (EPFO). Media reports suggest that under the proposed EPFO 3.0, employees might be able to withdraw PF funds directly from ATMs. This service could begin in June next year. However, withdrawals will be limited to a fixed amount. This measure will allow employees to access funds for emergencies while ensuring that a substantial amount remains in their account for retirement.

Also considering increasing the contribution of 12%

Simultaneously, there is a proposal to raise the employee's contribution to the EPF from the current 12%. Currently, the employee contributes 12% of their basic salary, dearness allowance, and retaining allowance. Out of this, 8.33% goes to the pension fund and 3.67% to the EPF.

EPFO card will be similar to debit card

According to sources, the EPFO card will resemble a debit card. It can be utilized as a bank debit at an ATM and will be named the EPFO Withdrawal Card.

What were EPFO 1.0 and 2.0?

EPFO 1.0: Accounts were kept manually, and applications and withdrawals were handled through paperwork.

EPFO 2.0: The EPFO online portal was introduced, and employees received a Universal Account Number (UAN).