After declaring PAN 2.0, the Central government is now planning to launch the EPFO 3.0 plan and will introduce several new features for subscribers. As per a report by CNBC Awaaz, the Employees' Provident Fund Organisation (EPFO) is likely to lift the 12% limit on employee contributions to the Provident Fund (PF).
The report suggested that the Union Labour Ministry is considering increasing employees’ pension contributions and issuing an ATM card, similar to a debit card, that will allow them to withdraw money directly from ATMs in the future. As per the report, the scheme is expected to be implemented by May-June 2025.
Right now, an EPF member will have to wait 7 to 10 days for the withdrawal amount to be transferred to their bank account linked to the EPF account. This is being done after completing all withdrawal formalities and submitting the required documents to the EPFO.
Moreover, the Centre is also planning to remove the 12% cap on PF contribution made by employees. This change will help employees with the option to contribute more based on their savings. However, the employer’s contribution will remain fixed, calculated as a percentage of the employee’s salary.
The report further suggested that the employees could soon have the flexibility to contribute to their PF accounts based on their savings preferences too. This plan of the Centre might also allow deposits beyond the current limit at any time.
However, it should be noted that the employers’ contributions will remain salary-based, ensuring stability in the system.
