PF withdrawal from ATMs? Major improvements expected from January 2025, says Labour Secretary
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Labour Secretary Sumita Dawra announced that starting January 2025, EPFO subscribers will be able to directly withdraw funds from their provident accounts at ATMs. This significant improvement is part of the Labour and Employment Ministry's ongoing efforts to enhance its IT systems to better serve India's workforce.
The Employees' Provident Fund Organisation (EPFO) boasts over 70 million active contributors. In an effort to streamline services and improve the ease of living, the Labour and Employment Ministry is upgrading the EPFO's IT infrastructure. Labour Secretary Sumita Dawra stated that from January 2025, EPFO subscribers will be able to withdraw funds directly from ATMs.
“We are upgrading the IT system of our PF provision. We have already seen some improvements. The speed and auto-settlement of claims have increased, and unnecessary processes have been removed. Our ambition is to bring the IT infrastructure of our EPFO to the same level as our banking system. You will see major improvements in January 2025 when we will have an IT 2.1 version in EPFO. Claimants, beneficiaries, or insured people will be able to withdraw claims directly through ATMs, with minimal human intervention,” Dawra explained.
Additionally, the Labour Secretary emphasized the government's commitment to enhancing EPFO services, aiming to improve the overall quality of life for contributors. Progress on extending social security benefits to gig workers is also underway, with plans in advanced stages. However, a specific timeline for these benefits was not provided.
The government's initiative includes the issuance of a new card for PF withdrawals, allowing convenient access through ATMs. There will be a withdrawal limit of 50% of the total deposit.
Rules for EPFO Withdrawal:
PF funds cannot be withdrawn, either partially or fully, while still employed.
After one month of unemployment, you can withdraw up to 75% of your PF balance.
After two months of unemployment, you are eligible to withdraw the entire balance.
The Code on Social Security, 2020, enacted by Parliament, defines gig and platform workers and incorporates provisions for their social security and welfare.
