The Central Government, after launching PAN 2.0, is now gearing up to introduce the EPFO 3.0 plan, which will bring several new features for subscribers. According to a report by CNBC Awaaz, the Employees’ Provident Fund Organisation (EPFO) is planning to remove the 12% cap on employee contributions to the Provident Fund (PF).
As per the report, the Union Labour Ministry is also considering issuing an ATM card, similar to a debit card, enabling subscribers to withdraw PF money directly from ATMs. This scheme is expected to roll out by May-June 2025.
Currently, EPF members must wait 7 to 10 days for the withdrawal amount to be credited to their bank accounts after completing formalities and submitting the necessary documents. The proposed ATM facility aims to simplify and speed up this process.
Another major change under consideration is removing the 12% limit on employee contributions to PF. Employees may soon be allowed to contribute more based on their savings preferences. However, employers’ contributions will remain fixed as a percentage of the employee’s salary, maintaining balance in the system.
Also Read- Big News for Employees! PF Contribution Limit of 12% to be Removed
The new plan might also permit employees to make deposits beyond the current contribution limit at any time, offering greater flexibility and convenience. While employee contributions could increase, employers’ contributions will remain linked to salaries to ensure stability.
These updates aim to provide EPFO subscribers with more flexibility and control over their savings while modernising the overall system.