EPFO 3.0: PF money can be withdrawn from ATM, government is going to make a big change..

The government is preparing to introduce several measures to enhance the facilities of EPFO ​​​​members under the EPFO ​​​​3.0 initiative. Under this scheme, the Union Labor Ministry is considering issuing an ATM card similar to the pension contribution and debit card of the employees. The special thing is that with this card, EPFO ​​​​members will be able to withdraw PF money directly from ATMs in the future.

This scheme is expected to be implemented by May-June 2025. Currently, EPF members have to wait for 7 to 10 days to transfer the withdrawal amount to their bank account linked to the EPF account. This happens after completing all the withdrawal formalities and submitting the required documents to the EPFO.

According to media reports, the government is considering removing the 12 percent limit on the PF contribution of employees. These changes can give employees the option to contribute more based on their savings. However, the employer's contribution will remain fixed, which will be calculated as a percentage of the employee's salary. Currently, both employees and employers contribute 12 per cent to the Employees Provident Fund. Of the employer's contribution, 8.33 per cent goes towards pension deduction under EPS-95 and 3.67 per cent goes towards EPF.

Will pension also increase?

According to reports, the cap on employee PF contribution may be removed, while the employer's contribution will remain constant at 12 per cent. This change will not affect the pension amount, as the pension contribution will also remain constant at 8.33 per cent. The pension amount will increase only when the government increases the salary limit for PF deduction, which is currently fixed at Rs 15,000. There is speculation that the Center may increase this limit to Rs 21,000. However, higher contributions from employees will help them create a bigger retirement fund after completing the age of 58 years.

However, EPFO ​​allows members to contribute more by opting for Voluntary PF (VPF). Employees can seek PF deductions over and above their mandatory 12 per cent contribution. The maximum VPF contribution can be up to 100 per cent of basic pay and dearness allowance, with the same rate of interest as the basic contribution.