look news india
New Delhi: Preparations are underway for major changes in the Employees’ Provident Fund Organization (EPFO). There may soon be major changes in the system that provides retirement financial security to private sector employees.
The government is working on a system under EPFO, where Employees Provident Fund Organization (EPFO) customers can withdraw PF money using debit card through ATM when they need money.
ATM withdrawal limits will also be set to ensure financial security during retirement and liquidity in case of emergencies.
According to sources, this initiative is part of the government’s ambitious EPFO 3.0 plan. It aims to modernize services and give customers more control over their savings.
The Labor Ministry is considering removing the 12 percent limit on employee contribution along with withdrawals from ATMs. Due to which the employee will be able to save more as per his financial goal.
According to sources, the customer may soon get the facility to deposit more amount than the current limit. Whereas the employer’s contribution towards sustainability will be salary based.
Employees can get freedom to deposit money in their account. So that their savings can increase without any restriction. Apart from this, the government is working on reforms in the Employees’ Pension Scheme 1995 (EPS-95).
Currently 8.33 per cent of the employer’s contribution is allocated to EPS-95. The proposed changes will allow employees to contribute directly to the plan. This will help them increase their pension benefits.