EPFO Rules Change: With the arrival of the new year 2025, many important changes are expected in the Employees Provident Fund (EPF) system. The purpose of these changes is especially to provide facilities to the salaried class. If you are also employed and have an EPF account, then these changes can be important for you. Let us know what changes are going to happen in the new year and what effect it will have on you.
PF money will be withdrawn from ATM
Recently there were reports that EPFO will soon issue an ATM card , which will allow people to withdraw money from their EPF account anytime. If this change is implemented, the process of withdrawing money from PF will become even easier and faster, giving you 24×7 access to your deposited capital.
The contribution limit in EPFO will increase
Currently, contribution to EPF is made only on basic salary up to ₹15,000 but the government is now planning to allow contribution to EPF on the basis of the entire salary. This means that if an employee’s basic salary is ₹1 lakh, then he will now be able to deposit ₹24,000 (employee and employer combined) in EPF every month. This will help in saving more money for the future.
Equity investment limit will also increase
EPFO invests the money deposited in your EPF account in various investment schemes so that it earns interest and the money grows. One way is to invest in Exchange Traded Funds (ETFs). EPFO is working on the idea of reinvesting the profit from ETFs in shares and other investment options so that more interest can be earned on EPF.
Facility for pension can be availed from any bank branch
In September 2024, the Central Government approved the Centralized Pension Payment System (CPPS). After this, about 78 lakh EPF pensioners will get the facility that they will be able to withdraw their pension from any bank branch and not from any particular bank branch. This will give more flexibility to the pensioners and they will be able to get their pension from any part of the country.
Last date for application for higher pension
EPFO has also announced that all companies should upload the salary details of their employees on the EPFO portal by 31 January 2025. Apart from this, if EPFO has asked for any other information, then it has to be made available by 15 January 2025. This step is for those employees who have applied for higher pension so that their application can be processed as soon as possible.
These changes are aimed at making the EPF system more convenient, transparent and beneficial. These steps will help you grow your EPF account and prove to be helpful in strengthening your financial position in the future.
