EPFO 3.0: The government is going to set a limit for PF holders to withdraw money from ATMs. So that financial security is maintained after your retirement and money is easily available even in emergencies.
Which is being made a part of the government’s EPFO 3.0 plan. Preparations are being made for major changes in the Employees Provident Fund Organization (EPFO). This system gives financial security to private sector employees for retirement.
Now it can come with new changes.
This change can solve many problems for the employees. It is reported that the government is installing such a system in EPFO. Through this, the subscriber will be able to withdraw his PF money through a debit card from ATM if needed.
The government will set a limit on withdrawing money from ATMs. Its purpose is to ensure your security for retirement. Money can be easily available when needed. This step is part of the government’s EPFO 3.0 plan. The aim is to improve services and give customers more control over their savings.
There is also discussion on more contribution
Along with the facility of withdrawing money from ATMs, the government is also considering increasing the 12% limit of employee contribution. This will enable government employees to save more according to their needs and financial condition.
According to the report, subscribers may soon get the facility to deposit more money than the current limit in their PF account at any time. However, the employer’s contribution will remain based on salary. However, employees will have complete freedom to save their savings. Due to this, their savings will be able to grow without any restrictions.
There is also an improvement in pension
The government is also planning to make changes in the Employees’ Pension Scheme 1995 (EPS-95). But currently, 8.33% of the contribution of the appointee goes to (EPS-95). Under the new proposal, employees may be allowed to contribute to this scheme. This will help in increasing their pension benefits.
When will the big change happen?
These reforms have been planned to solve the problem of facilities included in the EPFO system. It aims to strike a balance between long-term details, security, and immediate money needs. The official announcement of EPFO 3.0 reform can be done in early 2025.
This change can completely change the way savings are used for the employees of India. Still, the private sector deposits retirement funds for employees. Both the employee class and the employer contribute 12% of their salary to the PF account. Interest is given on this every year by the government. Which makes it a safe savings option.
