New Delhi5 minutes ago
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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 But only a fixed amount can be withdrawn through this.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 Using this card, money can be withdrawn from the provident fund account at ATM like bank debit.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 their contribution in the 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 contribution of 8.33% currently applicable.
- 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.
- EPFO 1.0 : Accounts were maintained manually. Application and withdrawal were done through paper process.
- EPFO 2.0 : EPFO went digital. Online portal facility. The employee got the Universal Account Number (UAN).
