Can you withdraw your EPF through ATMs after EPFO 3.0 implementation? Know important EPF changes Labour Ministry is set to introduce in June 2025
EPFO 3.0: After the EPFO 3.0 launch, subscribers might be able to withdraw PF through ATMs through a debit card-style facility.
The Ministry of Labour and Employment s to launch EPFO 3.0 by June next year. The ministry is looking to make several changes in the employee provident fund (EPF), such as removing employees' 12 percent contribution cap and allowing PF withdrawals through ATMs.
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EPFO 3.0 launch
Let's know more about what EPFO 3.0 is and what changes are in consideration by India’s provident fund system.
EPFO 3.0- Launch date
The Labour Ministry is to launch the new version of EPFO i.e. 3.0 early next year.
Withdraw PF through ATMs
After the EPFO 3.0 launch, subscribers might be able to withdraw PF through ATMs through a debit card-style facility.
Capping on withdrawal
Withdrawals will be limited, ensuring that retirement funds are preserved while providing liquidity for emergencies.
May remove capping on employees' contribution
The Labour Ministry may also consider lifting the 12 per cent maximum on employee contributions, allowing workers to save more.
What is the aim of Labour ministry from EPFO 3.0?
The Ministry aims that employees should get the facility to save at their convenience.
EPFO 3.0: Will employers' contribution increase to EPF?
There is no discussion yet on increasing employers' contribution.
How will ATM withdrawal work?
EPFO card will work like an ATM card from which more than 50 per cent of money can be withdrawn like a bank account.
EPS-95
The government is also working on reforms to the Employees' Pension Scheme 1995 (EPS-95). Currently, 8.33 per cent of the employer's contribution goes to EPS-95. The proposed modifications may allow employees to contribute directly to the system, increasing their pension payouts.
What is EPFO?
EPFO is a statutory body that manages India's provident funds and social security.