EPFO: Till now it takes three days to withdraw money from Provident Fund (PF) in an emergency. From next year, you will be able to withdraw PF money from any ATM. Yes, withdrawing money from PF will be as easy as withdrawing money from ATM.
Private sector employees will be able to invest more than the fixed limit in PF. Now there will be no limit on investment. After PAN 2.0, the central government is now preparing to launch EPFO ​​3.0 scheme. Many new facilities will be added to this scheme, which will prove beneficial for PF subscribers. Removing the limit of 12% PF contribution of employees is being considered.
Withdrawing money from PF will be as easy as withdrawing money from ATM
Under EPFO ​​3.0, subscribers will get the facility to withdraw money from PF through ATM. This new service is expected to be implemented by May-June 2025. This proposal of EPFO ​​is currently at the initial stage of discussion. In doing so, the government’s aim is to give subscribers more flexibility and better service for their savings and pension. After the implementation of EPFO ​​3.0 scheme, subscribers will get better retirement benefits and PF management will become easier than before.
Employees will be able to invest more in PF – there will be no limit of 12%
Also, subscribers can get the option to contribute more to their PF account according to their savings. Now employees can deposit more money than the fixed limit in their PF account at any time if they want. However, the contribution of employers or companies will remain salary based, which will maintain the stability of the system.
Reforms in pension schemes
The government is also planning to make changes in EPS-95 i.e. Employee Pension Scheme 1995. The entire 12% contribution of the employee goes to the EPF account, while the employer’s 8.33% contribution is deposited in EPS-95 and 3.67% in the EPF account. Under the new scheme, employees may get the option to contribute directly to EPS-95. This will enable subscribers to increase their pension amount.
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