look news india
The biggest and revolutionary news of this time is coming for the Indian labor market and the working class. Employees’ Provident Fund Organization (EPFO) is fully engaged in preparing to make revolutionary changes in its system very soon, which has been named ‘EPFO 3.0’. The main objective of this new and advanced digital platform of the government is to bring crores of workers in the organized sector of the country as well as the unorganized sector and those associated with the modern digital economy under the ambit of social security. Under this new change, a big plan is being made to provide direct benefits of pension and provident fund to every employee of the country and also to ‘Gig Workers’ like delivery boys, cab drivers in the future. Let us know what big and positive changes can come in the lives of crores of working people of the country with the introduction of this new system.
What is EPFO 3.0 and why is this new system being introduced?
At present, due to the outdated technical systems of EPFO, many times account holders and pensioners have to face lengthy processes and difficulties in getting their claim settlement, transfer or KYC updated. To find a permanent solution to this problem and to make the system completely paperless and modern, the government is working on the ‘EPFO 3.0’ project. Under this, the entire process will be equipped with AI and modern cloud technology, so that any employee from any corner of the country will be able to avail his PF and pension related services in a jiffy. This new system will be completely user-friendly and transparent.
How will gig workers and unorganized sector workers get pension benefits?
In today’s modern era, the number of gig workers providing online food delivery, e-commerce and cab services is increasing rapidly in the country, but till now they were not able to get any concrete benefits of traditional social security schemes or guaranteed pension. The biggest focus of the government through EPFO 3.0 is to provide security to this category. Under this, a flexible framework is being prepared so that these young workers working on digital platforms can also join provident fund and pension schemes with less contribution. This will not only secure their financial support in their old age, but will also establish a greater social balance in the labor market of India.
What will change for account holders and when will the new rule come into effect?
After the implementation of this new change, employees will not have to visit companies or offices to withdraw or transfer their PF money, rather the money will be transferred directly to the bank account within a few hours through auto-mode settlement. This high-tech project is being worked on rapidly by the senior officials of Labor Ministry and EPFO. Its formal rules and steps are fully expected to be announced in the coming days. For crores of employed and young workers of the country, this scheme is going to prove to be a historic step towards securing their financial future.