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Good News For pf holders
According to EPFO, early next year, subscribers can expect to withdraw money from their provident fund or PF account directly from ATMs as the Labor Ministry is working on issuing debit card-like cards to facilitate withdrawals. It is noteworthy that at present, EPFO members have to wait for seven to 10 days for the withdrawn amount to be deposited in the bank account linked to the account. That is, this wait will end with the new facility.
SERVICE START SOON (JUNE 2025)
If you look at the rules for withdrawal of money from EPFO till now, you are not allowed to withdraw PF funds partially or completely while being in job. If you have been unemployed for at least a month, you can withdraw up to 75% of your PF balance. After two months of unemployment, you are eligible to withdraw the entire amount. But through the new service, the process of withdrawing PF will become very easy, just like withdrawing money from a bank account’s ATM.
Earlier on Wednesday, Labor Secretary Sumita Dawra said on Wednesday that the government is working on modernizing the IT system to speed up the claim process, so that EPFO members can get convenience. She said that we are working towards settling the claims quickly. In the future, customers will be able to withdraw PF money through ATMs. This will involve minimum human intervention.
HOW IT IS WORK ?
This new and improved system in EPFO will include a special PF withdrawal card like bank ATM card. As part of the IT reform, the claim process is being expedited by eliminating unnecessary processes related to PF withdrawal. The government also reaffirmed its commitment to improving social security, including extending benefits to GIG and platform workers under the Social Security Code, 2020. Dawra indicated that many reform plans are in advanced stage, however, no specific time line has been given for their implementation.
What is EPFO ?
EPFO is the largest social security organization in the world and currently maintains 27.74 crore accounts (Annual Report 2021-22) belonging to its members.
The Employees’ Provident Fund was established on 15 November 1951 with the promulgation of the Employees’ Provident Fund Ordinance. This Ordinance was replaced by the Employees’ Provident Fund Act 1952. The Employees’ Provident Fund Bill was introduced in Parliament as Bill No. 15 of the year 1952. It aimed to establish a provident fund for employees working in factories and other institutions. It is now known as the Employees’ Provident Fund and Miscellaneous Provisions Act 1952. This Act is applicable throughout India. This Act and the schemes made under it are administered by a tripartite board, the Central Board of Trustees, which consists of representatives of the Government (both Central and State), employers and employees.
The Central Board of Trustees administers the Contributory Provident Fund Scheme, Pension Scheme and Insurance Scheme for organized sector employees. It is the largest organization in the world in terms of number of subscribers and financial transactions. The Board is assisted by EPFO which has offices at 138 different locations across the country. The Employees’ Provident Fund Organization is under the administrative control of the Ministry of Labor and Employment, Government of India. The organization also has a well-equipped training institute for training its officials and employees and conducting seminars for representatives of employers and workers.
EPFO Organization Structure (Annual Report 2021-22)
The Central Board of Trustees is running three schemes. EPF Scheme 1952, Pension Scheme 1995, Insurance Scheme 1976.
[…] Good news for pf holders […]
This will be implement form next year 2025, June.