ATMs will be used to allow Employees’ Provident Fund Organisation (EPFO) subscribers to take money out of their provident fund. The Labour Ministry implemented this move in an attempt to improve the services provided to EPFO users.
Beneficiaries will be able to easily access their funds through ATMs in the New Year. The card that the subscribers receive will function as a debit card and enable them to take money out of their funds using automated teller machines. However, they are only allowed to withdraw up to 50% of their money. In order to achieve this by 2025, the information technology systems are being enhanced and modernised.
Everyone will benefit from a quicker and more convenient claim settlement process.
More employee-focused activities will be available with EPFO 3.0. The Ministry of Labour is considering changes to EPFO services that could eliminate the 12% employee contribution threshold. This implies that increased deposits and pensions will be available to EPFO members.
Workers will have the freedom to invest or deposit more money (beyond the cap) at any time. However, the employer’s payment stays the same, meaning it is based on the employee’s pay. This implies that there won’t be any undue financial strain on the employer.
Workers will also have the choice, if they so desire, to convert the rest of their provident fund into a pension.
