EPFO 3.0 Update: The Central Government is preparing to revamp the Employees Provident Fund Organization (EPFO), which runs the social security scheme for 6 crore employees of the organized sector. Many new benefits can be announced for EPFO subscribers. The government can announce EPFO 3.0 in which the limit for employees to contribute 12 percent of the basic salary in the provident fund can be removed. Employees will be able to contribute as much as they want to the provident fund as per their saving capacity. Besides, account holders can also be given the facility to withdraw the money deposited in the Provident Fund from ATM.
Will get freedom to contribute more in EPF
According to sources in the Ministry of Labor and Employment, the government is seriously preparing to bring EPFO 3.0 in which many new announcements can be made for EPF subscribers. The most important among these is to increase the limit of contribution of employees in the provident fund. At present, employees have to contribute 12 percent of basic pay to the provident fund. But the government can abolish this limit. Employees can deposit the amount in EPF account as much as they want and at any time as per their saving capacity. Its purpose is to provide the subscribers the option to save as much as possible. This amount can be converted into an option to give higher pension to the subscribers on retirement. However, there will be no change in the contribution of employers. The Labor Ministry is discussing this formula.
You can withdraw provident fund from ATM!
The government can make another big announcement for EPFO subscribers. EPF subscribers can be issued an ATM card similar to a debit card so that they can withdraw the money deposited in the provident fund from the ATM. This means that the government is preparing to provide the facility to employees to withdraw their hard-earned money deposited in the provident fund from ATM. In this, subscribers can be given the option to withdraw 50 percent of the amount deposited in the provident fund. According to sources, the government can announce this new policy of EPFO in the new year 2025 and EPFO 3.0 can be implemented in May-June 2025.
EPFO’s IT system will be improved
The Labor Ministry is preparing to make major improvements in the IT system of EPFO so that employees can do any transaction easily. Preparations are underway to carry out this reform in two phases. The improvements to be made in the system under EPFO 2.0 will be completed next month in December 2024, due to which 50 percent of the problems in the system will be resolved. EPFO 3.0 will be completed by May-June 2025, which will also include improvements in IT systems. Actually, the aim of the government is to make the functioning of EPFO as per international standards.
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