Following the announcement of PAN 2.0, the central government now intends to introduce the EPFO 3.0 plan, which will provide subscribers a number of new services. The Employees’ Provident Fund Organization (EPFO) may remove the 12% cap on employee payments to the Provident Fund (PF),
In an effort to make withdrawals more convenient, subscribers may be able to take out PF directly from ATMs.
According to the report, employees may soon have the option to make contributions to their PF accounts in accordance with their preferred methods of saving money.
Additionally, the plan may permit deposits in excess of the present cap at any point.
To maintain system stability, employers’ contributions will continue to be based on salaries
Greater flexibility to increase savings
This proposal is currently in the preliminary stages of debate. Giving subscribers the freedom to save more is the government’s main objective.
According to the article, subscribers can also convert their extra funds into larger pensions for future benefits.
PF withdrawals via ATMs by the middle of 2025
According to reports, the Labour Ministry is developing cards that would allow PF withdrawals through ATMs.
By May or June 2025, this facility should be operational, providing EPFO subscribers with even more convenience.
EPS-95 revision for increased pensions
The Labour Ministry is also working on a redesign of the Employees’ Pension Scheme 1995 (EPS-95), according to a PTI report released on Thursday, November 28.
The EPF account now receives the full 12% contribution from employees, with EPS-95 receiving 8.33% of the employer’s contribution and EPF receiving the remaining 3.67%.
According to the report, the government is thinking of letting staff members make direct contributions to EPS-95.
With this change, subscribers would be eligible to receive higher pension benefits under the updated framework.
Better retirement benefits could be guaranteed by higher EPS-95 contributions.
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