Union Labour and Employment Minister Mansukh Mandaviya, revealed that, plans are in motion to implement a new Employees' Provident Fund Organization (EPFO) debit card and mobile application for EPFO members by May or June of this year.
The entire IT system is being upgraded as part of EPFO 2.0, which is anticipated to be completed by the end of January, according to the Union Minister.
Later, in May or June, the EPFO 3.0 app will be released, providing banking services to EPFO members. Interestingly, this will centralize the entire system, making the process of settling claims easier.
Simplified procedures
Members of the Employees' Provident Fund (EPF) will have a better experience with EPFO 3.0. The goal is to give employees more control over their retirement funds by increasing accessibility, simplifying procedures, and adding new features.
Quick access to the EPF fund via ATM card
New EPF withdrawal regulations may soon enable workers to quickly access their EPF funds with an ATM card, enabling them to efficiently handle unexpected costs or financial crises.
By 2025, EPFO members will be able to withdraw their PFs using ATMs, according to a statement made by Labour Secretary Sumita Dawra last month. According to Dawra, the Ministry of Labour is now working to improve IT services for the benefit of the EPFO-affiliated workforce across India.
Withdrawl limits
Every subscriber and insured person will be able to take their Provident Fund (PF) out of an ATM, according to Dawra. There will be a cap on withdrawals of 50 per cent of the beneficiary's account balance, according to some reports.
Contribution in pension
Likewise, in order to provide greater flexibility in pension contributions, the EPFO is thinking of introducing a new program. Under this plan, workers will be able to choose to contribute more or less to the Employees' Pension Scheme (EPS) than the current cap of 12 per cent.
Presently, the EPF receives 12 per cent of the employee's base pay, dearness allowance, and any retaining allowance from both employers and employees.
While the employer contributes 12 per cent, which is split between 3.67 percent for the EPF and 8.33 percent for the EPS, the employee's entire contribution goes toward the EPF. For those making less than Rs 15,000, the Indian government also contributes 1.16 per cent towards an employee's pension.
