Come 2025, withdraw your provident fund from ATM via spl card

Beginning next year, Employees’ Provident Fund Organisation (EPFO) subscribers can expect to withdraw their provident fund money directly from ATMs as the Labour Ministry is said to be working on issuing cards similar to debit cards to facilitate the withdrawal.

Currently, an EPFO subscriber has to wait for seven to 10 days for the withdrawn amount to be credited to the linked bank account.

Labour Secretary Sumita Dawra said on Wednesday that the government was working on modernising IT systems to expedite claim-processing so as to improve the ease of living. “We are working towards settling claims quickly. A claimant, beneficiary or insured person will be able to access claims conveniently through ATMs, with minimal human intervention,” she said.

50% limit likely

• The permissible withdrawal amount is likely to be capped at 50% of the total deposit
• Currently, an EPFO subscriber has to wait for 7 to 10 days to receive money in account
• Contributing more than current 12% limit & converting PF into pension on cards too

Sources said the permissible withdrawal could be capped at 50 per cent of the total deposited amount. The facility, said sources, was part of the EPFO 3.0 plan, which the Centre was preparing to launch. The plan has several subscriber-friendly features, including withdrawing provident fund from ATMs, contributing more than the current 12 per cent limit and converting PF savings into pension.

“The systems are evolving and every two to three months, you will notice significant improvements. I believe there will be a major enhancement by January 2025,” said the Labour Secretary. Highlighting the ongoing efforts to formalise the country’s labour markets, Dawra said that after 2017, more than 7 crore Indians had joined the EPFO and the government was undertaking initiatives to enhance employability and skill sets of the workforce.

On extending social security benefits to gig workers, Dawra said the plan was at an advanced stage. “A lot of work has been done and we have outlined a scheme that is now in the finalisation process,” she said. The benefits could include health coverage, provident fund and financial support in cases of a disability.