ATM like card for withdrawing PF: Preparation for major changes in EPFO ​​3.0 from June 2025, also considering increasing contribution by 12%

The Central Government is preparing for major changes in the Employees Provident Fund Organization (EPFO). According to sources, according to the draft of EPFO ​​3.0, now consideration is going on to provide the facility to employees to withdraw PF funds directly from ATM.

It is believed that this facility can start from June next year. But only a fixed amount can be withdrawn through this. So that the employee will be able to withdraw money for emergencies but even after retirement, sufficient amount will remain in the account.

Consideration is also going on to increase the existing 12% contribution by employees in the Provident Fund. Currently the employee contributes 12% of his basic salary, dearness allowance and retaining allowance of which 8.33% goes to the pension fund and 3.67% to the EPF.

Change: So that the employee can withdraw money immediately when needed According to sources, EPFO ​​card will be similar to debit card. Using this card, money can be withdrawn from the provident fund account at ATM like bank debit. This will be called EPFO ​​Withdrawal Card. Through EPFO ​​3.0, the Labor Ministry aims to simplify the Employees Provident Fund.

There was a demand by employee organizations to make the process of PF withdrawal more flexible. The government believes that with EPFO ​​3.0, a balance can be struck between providing immediate money to the employee in times of need and also providing a secure amount for retirement.

Employees will also be able to increase contribution in pension scheme

• The Central Government has also prepared a proposal for changes in the Pension Scheme (EPS-95). Under this, employees will also be able to increase the currently applicable contribution of 8.33%.
• There will be no change in the employer’s contribution. He will have to pay this in proportion to the employee’s salary.
• The employee will be able to get the facility to top up the contribution and pension fund at any time.
• The portal will be made more interactive to make the employee aware of the PF facilities.

1. EPFO 1.0 : Accounts were maintained manually. Application and withdrawal were done through paper process.
2. EPFO 2.0 : EPFO went digital. Online portal facility. The employee got the Universal Account Number (UAN).

After leaving the job, you will be able to withdraw 75% of your PF money after one month. Under the rules of PF withdrawal, if a member loses his job then he can withdraw 75% of the money from the PF account after 1 month. With this he can fulfill his needs during unemployment. The remaining 25% deposited in PF can be withdrawn two months after leaving the job.

PF withdrawal income tax rules If an employee completes 5 years of service in a company and withdraws PF, then there is no income tax liability on him. The period of 5 years can also be by combining one or more companies. It is not necessary to complete 5 years in the same company. The total period must be at least 5 years.

If the employee withdraws more than Rs 50 thousand from the PF account before completion of 5 years in service, then he will have to pay 10% TDS. Whereas if you do not have PAN card then you will have to pay 30% TDS. However, no TDS is deducted if the employee submits Form 15G/15H.

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